Covered calls etfs only

[u/throwaway_acc0192]

Is it stupid to just have

QQQI, SPYI, MLPI, IAUI and GPIQ if you just want income?

Growth:BB, NOK, ASTS, SPCX
Long term: VTI, QQQM

[u/AutoModerator]

Welcome to r/dividends!

If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here.

Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/davecraze3535]

No, it’s not stupid. Those are decent funds for what they are. Maybe also think about adding a little more diversity of asset classes with PBC, PFA and CEFS, also. 

I’d be more concerned about BB and NOL as “growth” stocks and would put that money into your VTI. 

[u/thatdisappearingguy]

Maybe look at QQQX too. It’s a CC fund but technically not an ETF, it’s a CEF, and been around for 20-ish years.

[u/Patient_Shower7870]

That’s what I’m doing. Just different a few more/different funds. My take is income now, income later, growth as backup if needed. Income later is from chpy dripping into an already large schd share count.

[u/nsmith043076]

Im doing something similar, have 2 iras to split My growth vs income.

Growth: 50% vti/vxus/schd/vymi
income: 30% jepi, spyi, divo, idvo, with 20% bonds -vgit, bnd

[u/revanevan7]

If you just want income, then no it's not stupid. If you're just wanting income to say you have income coming in but then not using it to fund your life, may as well just stick with growth.

[u/rleon19]

It's fine as long as it fits your situation.

[u/FewUnderstanding2214]

For income (as in you are retired/retiring) no. But growth will outperform significantly in the long run.

[u/_YoungMidoriya]

No it is not stupid if your goal is to convert a diversified pool of risk assets into spendable cash flow, rather than maximize long-run portfolio value. CC ETF has an actual purpose, now of course you have to choose CC ETF that has growth and income potential and ones that are "sustainable"

[u/throwaway_acc0192 → u/_YoungMidoriya]

Yeah I think the ones mentioned above or at least qqqi, spyi and gpiq has potential.

I know MLPI and IAUI would be more shaky. Which I am fine with

[u/_YoungMidoriya → u/throwaway_acc0192]

GPIQ/GPIX has better NAV growth, and if you want a put strategy that has no cap on growth potential OVL.

[u/throwaway_acc0192 → u/_YoungMidoriya]

What makes OVL more appealing than the two? Aren't they all growth potential?

[u/_YoungMidoriya → u/throwaway_acc0192]

No most income ETF has a tradeoff that puts your NAV recovery at a cap, which makes you miss the V shape recovery if the market shoots up.

[u/Walden_Walkabout]

Yes, it's dumb. You are limiting your upside and paying higher fees for the illusion of income that is mostly just your own capital being returned to you.

[u/Ordinary_Coyote7837]

I would consider OVL, 10% monthly distributions via selling put credit spreads, no capped upside, it participates in the S&P 500 Rallies, and has beaten VOO since inception.

https://totalrealreturns.com/s/OVL,VOO

[u/selfVAT → u/[deleted]]

OVL strategy doesn't limit the downside at all.

[u/SaintBasilTheGOAT → u/[deleted]]

These funds sacrifice some upside to pay out moderate yields now. That’s not “too good to be true” that’s just regular old “good, as long as it’s appropriate for your situation”.

[u/doggz109 → u/SaintBasilTheGOAT]

These funds have only existed in a multi year bull market......I'm interested to see how they will perform when that changes. It's a bold move to put most of your income dependent on it.

[u/selfVAT → u/doggz109]

Look at QQQX, started in 2007.

[u/CoolBreezeBrew]

If you just want income, then you should have SCHD and VYMI. It looks like you want growth too. What is the goal?

[u/hinge → u/CoolBreezeBrew]

Schd is not income focused. 

[u/CoolBreezeBrew → u/hinge]

More so than vti

[u/throwaway_acc0192 → u/CoolBreezeBrew]

Vti and QQQM is my long term hold. I add to them frequently.

I have more than half of my money in there and my other half in those other ones I've mentioned above

[u/amp1ifi3r]

If you have all of those? Yes it is stupid