On paper you’re right, and can argue that buying a better performing asset (than VWRL) with the dividends is pure luck, and you’d be right again. But that’s why I highlighted the “feeling” part.
Exactly, and here’s the rub: I can’t really care about 1.74% difference over 12 months, it IS real, but it’s also immaterial considering the vastly different feeling. My post was all about feelings, specifically the feeling of being an idiot I’d get if I’d held something for a reasonable amount of time and seeing it cancel out any gains. I know the accounting difference, don’t get me wrong, I’d even argued against covered calls funds on this forum with pictures showing what % of total return is taxed vs what’s untaxed in CH between JEPI and VWRL. The numbers are clear, but I wanted to point out that the difference in emotional impact can’t and shouldn’t be discounted.
I think Ben Felix’s finding about the fund vs investor returns gaps is very important, as it illustrates that in a perfect scenario investors would get the index returns (minus fees, taxes, trading costs) but it alludes that in a real world scenario investors don’t, for psychological reasons.