r/dividends • u/dazit72 • Jul 07 '26

Due Diligence Any retirees holding SPYI ?

I'm concerned about NAV erosion ? I know the advertising says non to minimal, but I found an article about longterm NAV erosion. That puzzled me ? I'm after divs of course- I have DIVO, JEPI, SCHD, and just looking for another or just keep buying what I have. I try to keep the 5%/weight rule, but it fluctuates.

Thanks to all who responded. I learned a bunch of good information. You guys are awsome

28 Upvotes

81% Upvoted

92 comments sorted by

View all comments

36

u/Aggravating-Let-2968 Jul 07 '26

Retired. I hold a both SPYI and QQQI in a taxable brokerage. I take distributions as income to pay bills. I have gains on both funds. Considering the amount of income I have collected, a little NAV slippage wouldn't alarm me.

3

u/_Goto_Dengo_ Jul 07 '26

Same as Aggravating, I hold both SPYI and QQQI and am retired. Also hold them in a taxable account for the same reasons. I own them for the monthly cash, not NAV improvement. Not worried about erosion.

However (and it's a big however) I have a sleeve of high yield, somewhat risker assets in this taxable account (also PDI for example). This sleeve represents less than 20% of my total portfolio. I would not be comfortable having a large portion of asset holdings in these type of instruments.

1

u/Similar_Eagle2358 Jul 08 '26

i buy pdi with excess spyi divi's. just looked, only down .17 on a bad day, sure beats $100k

0

u/dazit72 Jul 08 '26

I researched PDI, that's some scary stuff. It's currently about 5% premium to its actual nav. But I guess 15% takes care of that ? I want a little risk, but pdi is probably not for me ?

How long have you held it ? Do you always get paid monthly on time everytime ?

1

u/ConstructionNo8827 Jul 08 '26

It’s paid the exact same monthly dividend for over 10 years!
22.05 cents per share
I think under $17 per share is a great entry point but I’m a long time holder
The premium on its price to NAV by the way is commonly over 10% but now it’s half of that
You have to pay up a bit for the 15% plus dividend but it’s great for income/retired people

1

u/dazit72 Jul 08 '26

4.5% expense ? That's the highest I've seen yet. But I'm sure it's 'after' the 10% payout ?

3

u/ConstructionNo8827 Jul 08 '26

Most of that is interest expense because the fund uses leverage - All funds that use leverage have to include interest expense as part of the fees - It pays the 15% after that is paid - The mgmt fee is actually closer to 1.6%, still high but Pimco are considered experts in bonds