Hello, 911? I’d like to report a murder. This week, my portfolio absolutely killed the S&P 500’s weekly return. I guess it was personal. In the prior week, semiconductors took a temporary dip. I saw it as a blip and bought the dip. This week, I reaped the benefits of that decision. I have done this repeatedly as investors irrationally rotate into other, less-profitable sectors as a “defensive” play. In my opinion, that move makes little sense in today’s market environment. Over and over, these selloffs have created buying opportunities, and I have been able to profit from them. I plan to remain concentrated in semiconductors and, to a lesser extent, big tech and AI going forward. My current portfolio includes $CHPY, $GPTY, $YRAM, and $DRMY . Not every fund I own is from YieldMax, despite what the post title may imply. The title was partly due to space limitations, but let’s be honest, it also got your attention. $VGTX launches on October 6, and I plan to begin buying it as soon as it becomes available. That will give me a broader information-technology position to add when my other funds are outside my preferred buy ranges. YTD, my portfolio has returned 55.87%, compared with 16.01% for the S&P 500. This week, it returned 5.71%, versus 1.27% for the S&P 500. I am doing this while producing substantial cash flow. My trailing yield is currently 38.37%, while my yield on cost is 45.65%. In other words, my shares pay a higher income now than they did when I bought them. This is mostly due to the shares' value appreciating. Since I started posting here, some people have asked, “What value does this portfolio add compared with regular semiconductor ETFs?” On one hand, that is an astute question. On the other hand, I have to ask in light of the numbers I just shared with you, "Are you kidding me?" The question makes sense if spreadsheets are all you care about. But I am not interested in spreadsheets alone. I am interested in a balance of total return and cash flow. Who would not be happy with a roughly $15,000 portfolio paying approximately $7,000 to $9,000 per year in distributions while also appreciating in value? So far, my returns have also significantly outpaced what many critics’ preferred approaches have produced since this portfolio’s inception. I remain intentionally concentrated in semiconductors and tech because I believe they are among the few areas of the market that can currently support an option overlay capable of producing yields above 25%. I believe there is enough wind in the sails for that to remain possible for years. As I have said elsewhere, I am targeting 130% of my income needs. Once I reach that target, I expect to begin buying less-aggressive option-income funds and slowly pivot from being heavily concentrated to being more diversified. My philosophy is simple, concentrate when you need more income, and diversify when you have enough. Anyway, this was a great week for my portfolio. If anyone wants to know what sort of prophetic insights I have regarding what the market will do next week, my answer is, "lolidk."
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10 Comments
Adam Lalonde
@bitter_sweet · 26d
I am counting on these guys to do some heavy lifting in my portfolio as I wind down for early retirement.
Remi
@mattressmover · 25d
CHPY is the goat
Chris Wood
@mawashigeri · 26d
Great stuff. Similar to my approach
Paul M@hyperhat101 · 26dEdited
I certainly agree, and am concentrating now, mine increased over 7% last week, compared to something like 1.8% for the S&P I got a few shares yram when it 1st came out, looks really good so far, time to buy more, one of the things I like about high income funds, normally price stays relatively flat, so kinda does not matter when buy in...
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