🛑 Chasing High Yields (The Yield Trap): A 9%+ dividend yield looks juicy until you realize the stock price is down 50%. High yield often signals a failing business, not a free lunch. ❌ Using a TFSA for Pure Cash: Leaving your TFSA in cash is like buying a Ferrari just to park it. A TFSA is meant for growth and income assets so your returns stay 100% tax-free. 🇺🇸 Ignoring FX on US Assets: Buying unhedged US ETFs (like VFV) without understanding exchange rates means currency swings will impact your returns—for better or worse. 🎢 Panic Selling on Red Days: Equities fluctuate. Selling during a pullback locks in permanent losses instead of letting compound interest work its magic. 🗄️ Holding US Dividend Stocks in a TFSA: The IRS takes a 15% withholding tax on US dividends inside a TFSA. Hold foreign dividend payers in your RRSP instead to keep that tax relief! 🌀 Confusing Overlap with Conviction: Buying 5 different index ETFs that all hold Apple, Microsoft, and Nvidia isn't "diversifying"—it’s just paying multiple management fees for the same stocks. Focus on total return, keep fees low, max your tax-sheltered accounts, and let compounding do the heavy lifting. 📈💰read more
I’ve been running a very boring and conservative Balanced portfolio with a variety of ETFs (Index, Factor & a bit of CC) for the last few years. 😴 Since markets have been strong the past few years it’s given me more than enough to cover our expenses. 🙌 But with the popularity of CC/High Yield ETFs and so many finfluencer videos to learn from I thought I’d check a few out and see if it makes sense to jump on the ‘yield train’ and take advantage of these big monthly pay days! Before pulling the trigger though I thought I’d run the theory through a few scenarios using @karyungtom Reitrement Spending Calcultor. https://karyungtom.com/retirement-spending-calculator/ We can’t know future return paths but we can run various assumptions based on past market performance and other tools like a Monte Carlo simulators. So let’s see what happens… CURRENT PORTFOLIO/APPROACH Plugging in my hypothetical $2M and setting my spending strategy to ‘Fixed Inflation Adjusted’ with the Withdrawal Rate = 4% starts me off with $80k for spending. Not bad! Let’s say my time horizon is 30yrs and Inflation = 2.5%. Using the ‘Historic Backtesting’ option (which pulls full history of SP500 data) I can see my portfolio was a near 100% SUCCESS RATE through all time periods (5-30yrs). ✅✅ But… Unfortunately I’m not comfortable running a 100% equity portfolio. Since im running a 60/40 portfolio I need to see what that looks like. THE BALANCED MODEL ⚖️😴 The only way to see the 60/40 Model using the tool is to change my simulation model to the Monte Carlo option. From there - I can keep the 100% equity option, change to a Global, 60/40, Conservative or even a Custom option by entering my own Return/Volatility assumptions. Before moving to my current 60/40 model I hit ‘Run Simulation’ on the SP500 (all equity) just to check result and this showed a probability of 90-100% for the shorter timeframes but 88%-84% for the 25/30yr periods. Still - odds would be in my favour that our money would last! ✅ Moving to my Balanced (60/40) option I expected a lower success rate due to being more conservative but surprisingly the 25/30yr success rate jumped to 95-90%. A bit surprising - but Great!! That said - I WANT A CASHFLOW MACHINE! 🏧 From one video I’ve seen the Finfluencer suggested ‘bonds are useless’ and from all the CC ETF portfolios I see on Blossom I assume that 100% equity is much better for the CC ETF approach. Another Finfluencer suggest I need to ‘create a yield at least 3x bigger than my spending needs’. This would let me receive big monthly paydays to cover my expenses and the excess could simply be reinvested! I would ‘never have to sell a share’. Sounds great! Luckily - @karyungtom calculator lets me model all of this out and link to Return/Volatility assumptions based on the preferred asset allocation. THE CASHFLOW MODEL 💰💰 Following the guidance of the Finfluencers I switched the model back to 100% Equity/SP500. This showed Expected Return = 10.5% and Volatility = 19.7% (both seem reasonable and inline). I guess I’ll just have to except more volatility if I want to benefit from the high yields. 🤔 I referred back to the ‘Rules/Guidance’ I saw online for CC ETFs and saw I should have a mix of 15%+ and 30%+ yielding products. Based on that I set my models Distribution Yield = 25%. YES!!! On the Model’s $2M value a 25% distribution would mean a $500k per year PAYDAY! Now we’re talking! 🤑🤑 Let’s run it! …… WTF! The SUCCESS RATE stayed the SAME. 🤷♂️🤷♂️ The 25yr = 88% and 30yr = 84%. So the portfolio generated way more cashflow but since I only need 4% to cover my spending I now have to reinvest the excess to make sure I get the same result. Hmm. I guess Distribution Yields don’t influence actual longevity. 💡 The calculator actual shows this in the ‘Portfolio Path Table’. It even shows the share count. Under this approach I guess I at least don’t have to ‘sell my shares’ right away since I’m receiving such big distribution. I guess those are a few benefits. 🙃 But wait - CC ETFs have much higher fees than the Tradtional Index/Factor ETFs I was using for my Balanced Model. 🤔 My model has a total cost of 0.5%. When I calculated the MER/TER of a CC ETF Model it was closer to 1.7%. I wonder if I should lower my Return to reflect the higher cost? I wonder if that makes a difference over 30 years? After all - 0.5% on $2M is $10k per year in fees and 1.7% is $34k in fees. Whatever 🤷♂️ - so I’m paying a bit higher in fees. There’s probably another calculator for that. Let’s ignore fees and get back to my options for boosting my MONTHLY CASHFLOW… So far I have the same expected success rate I’m just receiving cash instead of having to sell my shares but I’m paying a bit higher fees and have to make sure I reinvest all the excess cash that’s coming in. That hardly seems like much of a benefit and since I’ve seen these CC/High Yield investors pay for vacations, kitchen renos and new hot tubs with distributions I can probably afford to take a bit more out for spending right? HIGH SPEND MODEL 🏧🏦 With $500k per year or over $40k per month coming in and a $2M portfolio I can probably just reinvest 50% and take 50% or $250k for extra spending. An extra $250k of spending buys a lot of living!! Let’s go!!! So since my Yield = 25% I can set my Withdrawal Spend Rate = 12.5%. After all - I got some ‘juicers’ now! I’m not sure what those are - but I’ll buy them anyway if it means I get an extra $250k! Let’s run it ….. AGAIN - WTF??? My first 5-10yrs looks fine - but by year 15 (when I’m only 65) it shows I’d have a 70%+ chance of hitting $0!! Year 25 = 88% and Year 30 = 90% chance of running out of money. 🤬 So success is NOT ‘impossible’ it just seems to be a lot ‘less probable’. Especially since result shows the exact OPPOSITE of my Balanced Model and 4% withdrawal that had a 90% SUCCESS RATE. So if I change - I get big paydays each month and don’t have to sell units but I have to take on more risk, pay higher fees, reinvest all the excess cashflow and accept that there’s only a 10% chance that my portfolio may still have some money by the time I’m 80?? But this is getting to be a lot to swallow. 😬 Maybe I missed something. Maybe this is better for SMALLER ACCOUNTS. I can change the portfolio value from $2M to $500k and maybe we can use it for our smaller accounts? Let’s run that… FML!! That’s also just a 10% chance of our money lasting 30yrs and a 90% chance that it runs out. ⚠️⚠️ Honestly - What’s going on? Ohhhh! You know what - this tool and calculator is probably wrong and just more ‘FUD’ because @karyungtom is one of those ‘growth’ investors. 😂 Then again - I guess the Finfluencers that I watched - despite their videos, spreadsheets and followers/sponsorships - may also just be learning too and also trying to figure this stuff out. 🤔 Either way - I get that these tools and calculators are all based on historic data (since future returns are unkown) - and they rely on a variety of assumptions and inputs - but just to be on the safe side and in case this analysis/approach is NOT totally wrong - I better take some more time to think and learn about portfolio construction, distributions and withdrawal strategies before I make a change to my actual portfolio. 💡 So for now - as tempting as $40k / mth looks - I’m going to stick to my boring Balanced Model with 4% withdrawals because this data shows it has a higher probability of creating more sustainable longterm wealth. ✅✅✅ MY TAKEAWAY ‼️ Despite everything I’ve seen online about the high yield strategies I’ve actually thought distributions were always just a ‘feature’ of a portfolio - not an actual strategy on their own or a reflection of quality or indicator of future returns. This exercise more or less would support that view. 🤷♂️ I can see the use case for some CC ETFs in certain situations but it’s important to consider all aspects. Currently I’m happy with the small % that I own (more as a way to capture volatility vs for the yield) so maybe I don’t need to ‘go all in’ on them and take more risk or pay the high fees across my entire portfolio? 🤔 Since we can’t control markets or returns - withdrawing too much too fast seems like one of the surest way to damage a portfolio’s longevity and we’re probably better to control what we can - asset allocation, strategy selection, fees and withdrawals/spending. ✅ Still happy to have gone through the exercise. Hope this helps and you consider doing the same. 🤓 Perspective ≠ Prediction Stay open to learning and do what’s best for you! 😉👍 ————- PS. Whether you agree with my take away and analysis or not - it’s worth exploring @karyungtom tool and entering your own models/assumptions. It’s a good one! 🤓 . read more
I know this concept gets brought up as a joke sometimes, but I just had a serious conversation with a beginner about it, so I’m inspired to offer some clarity. When people say covered calls have “capped upside,” I think two different ideas sometimes get mixed together. First, capped upside does not mean your entire portfolio return is capped. It refers to the upside of the underlying above the strike price during the life of the option. If you own something at $100, sell a call with a $110 strike and collect a premium, you can still benefit from the underlying rising from $100 to $110. Your return can be a combination of: Capital appreciation + option premium If the market moves sideways, the premium can help. If it falls modestly, the premium can soften the loss. If it rises but stays below the strike, you can participate in that rise while also keeping the premium. It’s only once the underlying rises substantially beyond the strike that you start seeing the opportunity cost of the covered call relative to simply holding the underlying. I think this matters because otherwise “capped upside” can accidentally turn into a strawman where people hear it as: “Covered call investors can’t benefit when stocks go up.” That isn’t true. The second point is why many people still favour simply owning the underlying for long-term investing. If you own an asset because you believe it has substantial long-term appreciation potential, repeatedly selling calls against it means repeatedly creating periods where some of that upside can be surrendered in exchange for premium. Sometimes that trade works very well. Sometimes the premium more than compensates you for the upside you gave away. But over a long investing horizon, an asset that experiences large upward moves gives you more opportunities to run into that cap. That is the actual trade-off. “Capped upside” doesn’t mean no upside. It means you are getting paid a premium in exchange for agreeing to give up some upside beyond a defined point.read more
$SOFI has now exceeded the Rule of 40 for 19 consecutive quarters. Q2 2026: Adjusted net revenue growth: 40% YoY Adjusted EBITDA margin: 30% Rule of 40 score: 70 That’s nearly five straight years of combining strong growth with improving profitability. A lot of companies can grow quickly. Doing it while consistently producing margins like this is what makes SoFi’s trajectory so interesting to me.read more
Just hit a cool little milestone in my portfolio: $90 in dividend income every single week. 💰 Although I'm not going to retire off that, I was thinking about all the different things $90 can pay for, and it's a pretty long list. To name a few: - A couple tanks of gas - 2 trips to Juan's Flamin' Fajitas with my wife - Most of our weekly groceries (those usually end up between $80-$100 per week) It's cool to see the list of things my passive income can pay for continue to expand. It won't be long (hopefully) until this portfolio is averaging $400 per month, and soon after that, $100 per week. That milestone is going to be VERY cool. How much dividend income are you averaging every week? Let me know in the comments! 👇read more
Closed off all my positions before close. Project and prompt found in comments YTD performance +46.64% Last 3 months +22.21% Grok definitely outperforming $SPY and $QQQ Restarting next week with an optimized instruction set and a plan to increase the volatility. Might bench mark this against Claude + MooMoo connection.read more
This week was more about thinking than trading. The biggest thing I’ve been watching is $CMCSA. I bought Comcast because I thought the company was undervalued and that separating the businesses could eventually unlock some value. The problem was timing. I had just watched my $VZ investment take off after earnings. I bought Verizon at the right time, the market got the confirmation it needed, and suddenly everybody could see the story. With Comcast, I figured I might be 6–12 months early. Now I'm thinking I may have been about one month early. CMCSA has started getting some attention, and I think investors are beginning to see what I saw: separating Comcast’s connectivity business from NBCUniversal/Sky could make the pieces easier to value . That raises an interesting question: What changed in investors' minds in a month? Probably not the business. The market just started paying attention. That's one of the things I’m learning about value investing. You can be right about the company and still be wrong about the timing. Sometimes the catalyst isn't another quarter of earnings. Sometimes it's simply the market finally deciding to look at the same thing you were looking at. A few other things from the week: • I’m now at 105 shares of $ET. • $SLB continues to be one of the strongest positions in the portfolio. I’m still very comfortable owning it. • I spent a lot of time going through BRT, MARA, $CSWC, $CWEN and NMRK earnings/results. Some of these are investments; some are experiments. I'm trying to keep those categories separate. • I continued building cash rather than feeling like I have to put every dollar to work. I’m still primarily an income investor. But I’m finding myself increasingly interested in why the market might eventually recognize value, not just how much a company pays me to wait. Maybe that's the real evolution of my portfolio. I'm still collecting dividends. I'm just getting a little more interested in the story behind them.read more
Don’t compare yourself to others. Everyone has their own journey, timing, and struggles. ❤️ Be yourself. Stay true to who you are. 🫶 And focus on becoming a better version of YOU every single day. 📈 Whether it’s learning 📚, investing 💰, your career 💼, or your family ❤️ keep improving, one day at a time. You don’t need to be better than everyone else. Just be better than who you were yesterday. 🔥 Small progress every day = a completely different you tomorrow. 🚀 Compete with yourself, not with others. 🧠💯read more
‼️🚨‼️🚨 Top News SCHD and DIVB are Beating Tech-Heavy ETFs 💰💰The SCHD ETF has jumped by 26% this year, while the DIVB has soared by 28%. In contrast, those tracking the Nasdaq 100 and S&P 500 indices have soared by 19% and 14%, respectively. 🚀🚀SCHD and DIVB have also received substantial inflows this year. They have added $17.4 billion, while the smaller DIVB has gained over $203 million in inflows, bringing their assets to over $104 billion and $1.8 billion, respectively. 🔥🔥Their performance is a sign that many traditional companies are outpacing those in the tech industry. 🤑🤑SCHD has a limited presence in the Al space, with its biggest companies in the fund being firms like Abbott Laboratories, Amgen, Merck, Coca-Cola, and Home Depot. Healthcare, consumer staples, and energy companies account 54% of the fund. Source: Benzingaread more
Since so many people ask how to invest in this sector, or this country, or this asset, I’ve decided to make a comprehensive guide on how you can invest in specific areas. This is NOT portfolio advice, simply information about tickers that you can research yourself. Save this for later so you have a list of ETFs to come back to! Canada: $XIU$XIC$ZCN All expose you to the TSX in Canada. These ETFs consist of all top Canadian companies and access to our national stock exchange. $VCB$VGV$VLB$VAB$VSB$VSC$XBB$XCB Expose you to Canadian bonds; whether it be long-term, short-term, corporate, government, etc. $VDY$XEI$CDZ Expose you to Canadian dividend companies $XRE$ZRE$VRE Give access to Canadian REITs $ZEB$XFN$RBNK Lets you buy the Canadian banks USA: $VFV$ZSP$XSP$XUS$HXS Lets you buy the S&P 500 (learn about hedged vs. unhedged in my other post) $XQQ$HXQ$ZQQ All give you access to the NASDAQ 100 $IWR$VO$VOE$VOT$IJH$SCHM Lets you buy US Midcaps $IJR$IWM$VB$VBR$VBK$SCHA Lets you buy US Smallcaps $DIV$SPYD$RDIV$DHS$VIG$SCHD$VYM$DGRO$SDY Give access from small to high dividend US companies $VTI$ITOT Lets you buy the whole US market $TLT$IEF$VGIT$GOVT$SHY$VGLT Give access to US bonds $XLC$XLY$XLP$XLE$XLF$XLV$XLI$XLB$XLRE$XLK$XLU All give you access to each sector in the S&P such as financials, energy, healthcare, etc. International: $XEQT$FEQT$VEQT$ZEQT Give you an all-in-one exposure to Canada, US, emerging and global markets. $VEA$IEFA$SCHF$SPDW$EFV$EFA Give access to general international exposure $EWJ$EWU$EWC Gives direct access to developed international countries $INDA$MCHI$EWT$EWY$EWZ$EWW$EIDO$EWM Gives direct access to emerging international countries Assets: $KILO$PHYS$CGL Let’s you buy gold directly through ETFs $SVR$HUZ Let you buy silver through ETFs Savings/Interest: $CASH$HISA$PSA$HSAV Access to Canadian savings and interest payments $HSUV-U $PSU-U $HISU-U Access to US savings and interest payments There’s so many ETFs I didn’t go into with dozens of categories, but this should give you some basic starting point to look into your ETF investments. This is simply the starting point, when choosing your investments always research the ETFs, what they provide to you, their fees, your goals, your risk, and what you’re looking to get out of investing. As always do your research and happy investing! Subscribe to the newsletter: relatablefinance.substack.com read more
The advice I keep seeing on Blossom for young investors is that when you're young you can afford to take more risk, and in general I agree with that. Where it goes sideways is in how people put it into practice. Increasing risk usually turns into increasing concentration, and lately that means a few AI names or bitcoin/crypto. What concentration does is widen the range of what could happen to you, without paying you anything extra for it. You might hit it big and you might lose 80 or 90 percent of it, and both of those are very real possibilities. You could take your whole paycheque to a roulette table and put it on red. You have definitely increased your risk. But run that a million times and your expected return is negative, because the wheel has a green zero on it. Run a diversified basket of stocks a million times and your expected return is positive. Both are risky. Only one of them has something paying you to take the risk. Hendrik Bessembinder looked at 25,967 US stocks from 1926 to 2016 and found that only 42.6% of them beat one-month treasury bills over their lifetime, with just 4.3% of stocks accounting for all the net wealth created above T-bills. The median stock lost money. So when you concentrate, you're betting you're holding some of that 4.3%. The usual argument is that a 20 year old can afford to lose it, because there's plenty of time to recover. Personally I'd argue the opposite. If you're 20 and you lose $10,000, at 8% over 40 years that's about $217,000 you don't have at 60. That's the price tag on the bet, not ten grand. And most people are placing this bet inside a TFSA, which makes it worse. If you put $10,000 in and it falls to $1,000, you only get $1,000 of room back when you withdraw it. The other $9,000 of contribution room is gone for good. You can't claim the loss against anything either, since capital losses inside a TFSA can't be used to offset capital gains. I understand the appeal of treating it as bonus money and hoping you picked right. But if you buy something diversified and keep contributing, you put yourself in a good position without ever needing the home run.read more
THIS WEEK I GOT IT Seven days ago I wrote that $MSFT was strong, confirmed, and overbought all at once, and that the risk was not the business, it was the entry. I wanted the pause, not the peak. This week the pause showed up. The stock cooled about 1.6% and closed in the lower part of its weekly range. My scanner eased it from a buy to a conditional. Not a downgrade of the story, a downgrade of the urgency. It still carries one of the strongest relative-strength readings among the big names on my board, still sits in my optimal zone. What changed is the volume: it went quiet. A leader taking a breather on light volume is exactly what a healthy rest looks like. Here is what I am adding to the read now. Under the hood, the move has been running hot across every horizon I check, short and long, and a quiet internal weakness has been building underneath for a while, the kind that tends to show up before a leader takes a rest, not after. None of that says the trend is broken. It says the easy part of the move may be behind us, and that the next stretch needs confirmation, not faith. So the path I am watching has not changed, it just got closer. Does $MSFT hold its trend through this rest, and does volume come back in when it turns higher? That is the difference between a leader that pauses and a leader that peaks. Until the volume votes, my scanner has it on hold, and so do I. The lesson from last week still holds, just with a week of evidence behind it: great company, confirmed leader, and still the wrong place to chase. I want the pause to prove itself before I move. Not investment advice. 🐝read more
Got inspired by @matt.41 and @edsam to upgrade one of my calculators. You can now choose Monte Carlo (Statistical) as the simulation method and set the strategy’s: - Expected return - Volatility - Yield - which we keep constant, since I think that’s what many people try to target and maintain This lets you see how much is being spent and reinvested. And if you want to see the implications of applying the "4% rule", you'd just set the expenses to 4% of your initial portfolio. https://karyungtom.com/monte-carlo-retirement-calculator/read more
I decided to start a series called Project $1K. I am documenting my journey on how I’m adding an extra $1000/month in passive income to my portfolio. I am doing it anyway, I might as well share it. My wife and I bought $1,959.72 of $HDIV on July 30th. This will give us an income of $16.21 Stay tuned for more!
This is why I love dividend investing! ❤️ Made almost $150 in cold hard cash today without having to lift a finger. 💰 How much did you get paid this week? Let me know in the comments! 👇
I see many beginners posting that they’re new to investing and don’t know where to start. 🤔 As someone who was in a similar situation just a few months ago and learned, here are the 4 ETF types (& ETFs) that are popular among long term investors 😃 : 1) S&P 500: US: $VOO / $SPY / $SPLG Canadian: $VFV / $ZSP / $TPU 2) GROWTH / TECH: US: $QQQ / $VUG / $VGT / $SCHG Canadian: $QQC / $HXQ / $TEC / $ZUQ 3) DIVIDENDS: US: $SCHD / $VYM / $DGRO Canadian: $VDY / $XEI 4) ALL IN ONE / BASKET / Global Exposure: US: $VT / $AVGE Canadian: $ZEQT / $XEQT / $TGRO / $VEQT / $ZGQ I noticed many people following this type of a basic / uncomplicated portfolio and are doing really well for themselves 🔥 For % allocation, you can divide evenly among the ETF categories or allocate a higher % based on your preferences. Just DCA regularly and you should be good. 😎 Some people even just put it all into an all in one etf like $XEQT. This is also a good approach - it is much simpler and it works. Ultimately, it comes to whatever you prefer 🙂 Oh and yea, there are overlaps, but I don’t think there is anything wrong in that though - it would just count as doubling down on good things. 💯 I’m sharing with you all what helped me, but don’t forget to do your own research too! 🙏🏼 read more
Bank of America just screened the AI trade for stocks that have fallen at least 20% from their highs but are still rated Buy by its analysts. The list includes names across memory, cloud, data centers, power and AI infrastructure - including MU, CRWV, ORCL, VST, META and others. What makes this interesting is that these aren’t just random beaten-down stocks. BofA is specifically looking for companies where the long-term AI thesis may still be intact despite the recent selloff. I’m not buying all 16 - but this is exactly the kind of list I want to study when the market gives us a reset. Which one would you research first? https://www.instagram.com/stockswithpawan/reel/DcHj2nqAo6h/read more
If you could only buy one Mag 7 stock today which would you choose? $NVDA at $225 $MSFT at $495 $GOOGL at $345 $AMZN at $263 $META at $590 $AAPL at $305 $TSLA at $341 And why? At today’s prices I’m taking Meta 🤷♂️ read more
For those who were early in… 👇 $NVDA $MU $AAPL $AMZN $MSFT $NFLX $META $V Etc. What were you looking for and saw that lead you to believe that it had the potential to be a good stock ( and clearly was! 😉) Let me know! Thank you 📈🙏👇 Let me know 👇❤️read more
On August 15th 1971 President Nixon took the U.S. Dollar off the gold standard and became the Petro Dollar Buy hard assets to hedge currency debasement $GLD $SLV $BTGD Land $BTCread more
Hello tradevestors, I'm starting my "1 Stock Ladder Journey" this week, exclusively on Blossom Social. It was inspired by a trading challenge I came across, which motivated me to create my own version. I’m starting with $100 - an amount I’m comfortable experimenting with - to see how far I can climb. 🪜 The rules are simple: 💵 Start with $100 only 🎯 Trade ONE stock at a time 🪜 Stock Ladder - Each new trade starts with the full balance from the previous one. 🔒 No Fractional Shares - I’ll only trade whole shares for easier liquidation and choose stocks that minimize leftover cash. ℹ️ This 1 Stock Ladder Journey is different from my regular portfolio. Instead of spreading my funds across multiple stocks, I am putting the entire Ladder balance into One stock at a time. It’s an all-or-nothing challenge to see how high I can climb the ladder of growth. If it works well, I will incorporate a version of this strategy into my regular portfolio. No fixed target - just progress. 📈 I’ll take it month by month and keep climbing, one trade at a time. I'll post an update every Friday. Don't miss the climb. 🪜 Myra, The Weekly Tradevestor *For entertainment/educational purposes only. Not financial advice. $SPY$QQQ$VTIread more
Hey guys it’s been a busy weekend for meh, here’s a look at the companies reporting earnings this week, slowing down a bit: Tuesday: $HD, $BIDU, $KLAR Wednesday: $TGT, $TJX, $LOW, $EL, $BULL Thursday: $WMT, $BABA, $DE Friday: $BJ
If you’re avoiding high yield ETFs it’s because you worry about nav erosion. If you’re in them your biggest concern is still nav erosion. Here’s the funds that won’t erode no matter where you buy them. 🧵👇 Also funds that won’t erode depending on your entry. Avoiding erosion is a two front thing. Both factors need to check the box. The underlying needs to be bullish longterm. The highest certainty of that comes from the indexes. The strategy needs to also check multiple boxes. You need a strategy that avoids heavy upside cap. Heavy upside cap means you get all the downside of the underlying with limited upside. That created a chart that perpetually erodes. You want far out of the money covered calls or put spreads. If a fund is selling near the money covered calls for 60% yield… you’re going to have erosion unless the underlying goes parabolic. So what checks those boxes? $GPIQ & $GPIX track $QQQ & the S&P. They pay a modest 9-10.5% yield but get some of the highest nav growth in the space. That also leads to dividend growth. $OVL is 99% long $VOO. The 1% is collateral for put spreads. That means no capped upside with the 10.28% yield. It also has a near 7 year track record of beating the S&P. $QQQI & $SPYI sell monthly far out of the money covered calls on only a portion of the holding. Coming in at 14 & 12% yield they now have years of nav stable track record. Now here’s the problem people run into. They assume you can buy these tier two funds below at any price. To maintain nav health you need to time entries. That’s my bread and butter but here’s the thing. You don’t have to do that to have success. If you want to set and forget just stick to tier one funds. For tier two think funds like $CHPY$BLOX & $GIAX. With the correct buy points you end up nav green harvesting 24-40% yield. That’s an absolute game changer. Two people who buy the same fund can have two very different outcomes. That all depends on your entry point. Risk to reward is crucial here whereas the basic indexes can be bought at any price. This is why you need a plan and know what bucket each fund falls in. If you want pure set and forget stick to tier one. If you want a hybrid mix both tiers with the understanding that it will require active management.read more
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