A lot of people are afraid to invest in $HHIS because the distribution is high. And honestly? You should respect the risk. High income doesn’t come for free. You have to be comfortable with volatility, changing distributions, and the possibility that the ETF price can drop. But that’s where investing gets emotional. 😰 When the price drops, fear tells you to sell. 🤗 When the income keeps coming, greed tells you to buy more. 🧠 Your job is to stay disciplined and understand WHY you invested in the first place. The potential reward? Strong cash flow and the opportunity to reinvest those distributions and compound your money. $HHIS isn’t for everyone. But if you understand the risk and have the patience to hold through the ups and downs, the reward can be meaningful. Investing isn’t just about picking the right ETF. It’s about controlling your emotions when the market tests you. Stay patient. Stay disciplined. Let the strategy work. 💪📊
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ETF Go@etf.go · 19dEdited
Good post! Risk definitely needs to be considered for this type of product and specifically for HHIS. Combining a highly concentrated, randomly selected active list of stocks (many of which have been highly volatile) with leverage, high fees and high distributions can easily translate into big drawdowns and persistent performance hurdles. Yield on its own is simply a feature. It’s not a strategy nor is it an indication of quality or future returns. 👍
John D@iamjohn_d · 19d
If an investor genuinely NEEDS income, like a retiree for instance, where safety of principle & capital preservation is usually top of mind, in what world does it make sense for them to take on MORE RISK to achieve said income? In fixed income, in bonds for example, people understand that high-yield bonds (junk bonds) are RISKIER investments that pay a higher interest rate to COMPENSATE for the higher risk. These bonds are typically issued by the crappiest companies carrying the highest risk of defaulting. Extrapolate this concept to equities, and you'll begin to see why HHIS is an inappropriate investment for just about any demographic. The only people that really go for these investments are yield-seekers, people who WANT income (not NEED income), who are poorly equipped to objectively evaluate what they're investing in. AI's only as smart as the person that's controlling the prompts by the way... people can tell when others are using it to generate slop.
Well said! At the end of the day, some folks apply their own personal risk tolerance and comfort with certain types of investing to others, as if there were an absolute “good” or “bad” — instead of recognizing that there are many different strategies and products, each with its own use case. Doesn’t matter if it’s an all-in-one ETF, GICs, T-bills, a sector ETF, Mag 7 or blue chip stocks, covered call ETFs with lower, more conservative yields vs. others with more aggressive higher yields, 2x leveraged ETFs, self-managed covered calls, iron condors (selling a call spread + put spread to profit from low volatility/sideways movement), the wheel strategy, LEAPS, margin accounts, the Smith Manoeuvre, etc and etc As DIY investors, we should all take the time and curiosity to learn about new products and strategies, and figure out whether they actually make sense for our own reality, portfolio, and goals. That’s how we become more mature, savvy, and seasoned over time. - something that does not make sense today, maybe can be useful in the future… keep your mind open
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