$BIGY cut distributions. If you didnt see that coming, you need to understand where your return comes from. Roc is not exactly your own money coming back to you, the fund let it appreciate first.... You give bigy your hard earned $100, they take it invest it into the fund and distribute the diffence. if the fund goes up 30% that year they give you $30 in distributions back, that is technically your own money coming back to you. Why is this a problem sor some funds and not others? It depends on the underlying! bigy is saying they will payout more then the appreciation of the underlying stocks. most people will say this happends from the covered call underwriting however most of these funds actually net zero or loose money on there underwriting. Whats next, is nav erosion or a distribution cut to save the NAV. Most of these funds are overpromising because the market was good recently. in otder to keep that promise you will see it in the nav. $HHIS I have been blowing the whistle on as well. Showing a cool 30% distribution that seems unlikley in a bear market. Writing covered calls alone will bring that distribution up to what? probably not much and if the stocks in the etf dont preform then your just stuck with 2.5% fees for nothing..... All this is to say that total return comes from somewhere and you should defiantly look into where that is. we have enough $MSTE bag holders baiting others into buying there convition, dont be that, really look into the funds you may want to hold.
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114 Comments
Paul Santori@paulsantori · 4d
So BIGY proves your theory, explain SIXY to me. How come it’s not following your formula?
Dave Jackson@where_is_dave_j · 4d
Honestly this sounds BIGY sounds Notorious
Paul N@pauln · 4d
Blowing the whistle on what? My average nav is in the low 10’s. Even with the 2.5% fee im way ahead. Your opinion depends on many factors. I genuinely like your posts and like reading them and respect your opinions. However this is kind of a passive negative shot at a perfectly decent etf that is better than many others out there. Did you read Max’s post yesterday? I challenge you also to tell me how an index portfolio of $94,500 in a TFSA would stand up to my simple CC portfolio I created? See my posts on this if you want to try. How much money would be left today after 30 months using a total return VOO VDY kind of approach? No new money added or reinvested?
H CL@heroichenry · 4d
Bigly if true
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