re: Dividend Stocks I've gotten into the last couple months are QQQI and JEPQ

I’ve been an index fund guy forever. My IRA’s are almost entirely in index funds both stock funds and bond funds. I’ve been very happy with the results.

I have individual stocks in my nonretirement trading account. ETFs that are actively managed have recently got my interest. JEPQ and JEPI are both actively managed and have 0.35% expense ratio which I believe is relatively low for being a managed fund. If I am looking at them correctly, both are relatively new – about 1-to-3-year history so not much of a track record. When checking their recent performance both have slightly underperformed their Primary Benchmarks. This is in the current mostly up market timeframe for their benchmarks. So, in my mind I wonder how they would compare with the benchmarks during a down market since they are actively managed?

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hard money lending

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You do this through an etf or a baseball bat and a couple guidos?

There is no free lunch…..

1yr return of JEPQ is 28.74% (inc dividends) vs the Nasdaq 100 - 35.23%

In a flat market where owning the index would net zero gain, a Buywrite \Covered Call Strategy ETF like JEPQ should still produce a good yield. This is where these strategies perform the best.

In a down market you should outperform when holding JPEQ vs the index due to earning the option premiums on the way down.

What would yield look like if the market crashed say 50%? Assuming no strategy change by the portfolio manager, it all depends on what options premiums do. Overall these are good products for someone looking for yield who does not want to trade options themselves. However if the markets correct, like in a covid type crash, putting new money into a product like this would most likely underperform on the way back up vs buying the index.

These are convenient one click buys for one to get yield. You should outperform in a flat market and limit downside in a selloff while still producing income, though it could be less due to premiums being lower.

There is more complexity to these type products such as how equity linked notes are structured etc… as with most structured products layers of Market, Counterparty, Credit, and Liquidity risk exist beyond the ticker…..

i used to get $5 a share from Boston Celtics stock. It barely ever moved, but always got that $5 a share at end of year.

Even got to vote for Board.

Miami Panthers were also listed at one time, as was another pro franchise.

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There is no free lunch….. 1yr return of JEPQ is 28.74% (inc dividends) vs the Nasdaq 100 - 35.23%

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Seeing responses like this convinces me gen z will probably end up more bitter than the millennials. Seeking 10-15% returns used to be the benchmark achievement.

The fact everyone on the MB has doubled their investments since covid has warped traditional approaches. Furthermore, posters who’ve been around 10 years+ have probably done even better and used those gains to add rental properties. If the market tanked tomorrow 30-50% most would be disappointed, but unmoved because they know that decade of fortune couldn’t last forever.

On the other hand, good luck to those getting into the market today who are chasing crypto and 25%+ NASDAQ gains trying to catch up.