Iāve been thinking about something I donāt see discussed nearly as much as what weāre buying. Dividend investors will research individual companies, follow the earnings and fundamentals, and sometimes decide an investment just isnāt working out. Theyāll sell it ā sometimes at a loss ā and explain what they moved into and why. ETF investors make changes too. Iāve certainly done it myself. I owned a shotgun of different funds when I started, and as I learned more, I sold quite a few and changed direction. So hereās what Iām interested in when it comes to covered-call ETFs. We hear a lot about the funds that ARE working. HDIV comes up regularly, for example, and one of the things people point to is its total return. So which covered-call ETF did you own that DIDNāT work out for you? What made you finally decide to sell it? And hereās the part Iām most interested in: What did you move the money into, and why did you believe it was the better choice? Was it another covered-call ETF? And what made that one more attractive ā total return, NAV performance, underlying holdings, distribution sustainability, the strategy itself, or something else? I think thereās a lot we can learn from the funds people decided to leave behind ā and why they chose the replacement.
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18 Comments
Dashnor Hasku@cankos Ā· 16h
I had most of the Harvest, lots of yieldmax and few Evolve. Best decision of my life was to get rid of them (still have 6 and only kept them because I was down between 70-90%). Iāve purchased dividend stocks and Iām up on a lot of them considerable. Covered calls are the worst product for retirees or people who are close to retirement and I only say that because I actually invested did a test and didnāt work! The only people who make money from covered calls are companies who issue them with their fees and few you tube influencers who have no clue about investing!
Catherine @ffcatherine Ā· 16h
For me my worst decision was 20k into MSTY (USD one) I started at like $45 then actually ADDED 10k as it dropped in price thinking I was getting a deal .. then I lost 75% of this 30k which takes years to save that much cash ššš Biggest lesson was that super high yield, single stock promising HUGE payout is too good to be true long term The few dollar left went towards QQQM (Nasdaq index fund )
Kyle Garrett@kgcottawa Ā· 14h
Normally when it breaks my rules. I am far better at cutting a loser these days! I held on to $BNS longer than i should have when it broke my first rule (failed to execute stated objectives) and waited until it broke a second rule (ceasing dividend increases) Now itās mechanical for me: they break the rule, itās not justified, itās gone!
Richard Verhaeghe@ravonar Ā· 16h
With the exception of 1, I sold all my covercalls and most single stocks and thematic ETFs last month
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