but with some dynamic CC ETFs (NEOS, GS) the yields are much higher (~10%) and their call writing strategy is more dynamic than a fixed one with (JEPI etc.)
the Ben Felix video compares the fixed (100% call writing on assets) to buy and hold ETFs (again I am not an expert here so can miss on nuances)
But let’s say if someone invests 100k in both of these options - CC ETFs and periodic withdrawal using a robo advisor (the idea being it should be automatic to get the cash flows), which one would be better say for a 5 year horizon and 10 year horizon?
I still think CC would provide a better outcome as taking 10% from a buy and hold is diluting the underlying too much too quickly.
For a 3-4% return, the winning strategy could be different.
This is a comparison between sp500 and JEPI, spending corresponds to JEPI distribution for both. So you’d withdraw from IVV what JEPI is yielding, minus IVV dividends I guess.
It really doesn’t matter, Ben Felix is talking from an academic maximum possible total return point of view. It makes sense to do it this way to ensure a common baseline and compare apples to apples. It doesn’t matter because the premise doesn’t work in the real world, or for all people.
You’re 100% right, the issue is psychological, seeing numbers of shares going down over time, worrying if the robo advisor (very good idea, by the way, if it can be automated to sell and also send you some cash in a regular account) will sell at a downturn - which the human would sweat over - or worrying about selling in a bull run and hence capturing less of it over time.
One thing in the sim is spending matches JEPI dis which are not steady. So an 8% fixed recurring withdrawal might behave differently in comparison.
If you consider the robo a black box and doesn’t care about what the robo does or the unit counts… I’m not withdrawing but I have no idea of what’s in my VIAC 3a in terms of unit, while I very well know every position I manage myself.
I’ve got a robo story myself - and I don’t know the unit counts either, while I monitor the position amounts and the total AUM.
It’s not the main part of my (one and only, I don’t segregate strategies, just different tooling) PF, and I might experiment that withdrawal thing maybe next year, since I don’t want its AUM to go higher anyway - fees.
I’ve only used it as a no-brainer, standing order dca investment, and that was efficient during pseudo-bear 2022. I also lumped sum big bad time in the non-robo part end of 21 and needed tooling to stay in the course. It helped and succeeded. Now I just throw a few hundreds in it each month to empty my account once everything’s paid (incl. the “pay yourself first” fixed amount).
Quick question about dividend payouts: CHDVD had one with ex-date March 12 (yesterday) and record date March 13 (today).
The dividend amount was deducted from the share price on March 12 at start of trading (so basically overnight from March 11 to March 12 while the exchange was closed), right?
When would I have had to own a share to receive the payout? March 13 at start of business day (so buying on March 12 by exchange close at the latest), or March 13 at end of business day?
If you see the ex div dates, it’s got loads, making me wonder if it simply passes on dividends to holders as they come in from the 20 companies it owns. Wouldn’t it be more efficient to provide just a single dividend per year (say, July)?
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