Does anyone have experience with SPYI ( SPYI - NEOS S&P 500 High Income ETF | NEOS Investments )? The main problem with such ETFs is, that the upside potential is pretty low (to none). SPYI should use a more aggressive approach than JEPI, which means, higher upside - but maybe also higher downside risk?
While the dividends of e.g. JEPI are ordinary dividends, SPYI uses another strategy:
Capital gain distributions / §1256 option income at the fund level: For non-U.S. taxpayers, capital gains are generally not subject to U.S. taxation (exceptions include, for example, the 183-day rule). Therefore, there is typically no U.S. withholding tax on pure capital gain distributions. Return of Capital (RoC) is likewise not subject to U.S. withholding tax; in Switzerland, RoC normally reduces the cost basis. (Details may vary by canton; proper bookkeeping is required.)
I was not able to find SPYI in ICTAX.
Edit: Now it worked, and it seems, that the dividends are ordinary dividends and taxed accordingly, so this question is answered.
Wait ‘till you see the video he argues that a chicken laying an egg is the same as a chicken minus an egg
Or the one where he goes in a shop and pays with screenshots of his portfolio
Seriously though, we know, just don’t care, and that should settle this discussion, otherwise let’s spam the stockpickers’ thread with videos on index funds.
One of the four best weeks of the year is coming up: dividend week! I’ve earmarked this quarter’s distributions for a gaming screen on Black Friday, will be playing my games in 4K and raising a glass at the dividend irrelevance hypothesis.
I’ll sell 0.001% of my 300% ytd growth portfolio so I can buy me a worldwide trip to the most beautiful places in infinite Ks (or whatever my human sensors resolution is) !
Dividends are great for video-game players though.
Receiving dividends doesn’t really register with me I guess because I believe in the dividend irrelevance theory. The metric I’m interested in is net worth, and net worth stays stable with dividends. You could even say dividends lower net worth because of taxes, which would’ve been avoided if they had been capital gains.
It’s even the opposite for me, I hate receiving them. Becausing receiving dividends = tax I have to now pay, but my portfolio value did not change at all. So it’s just a straight up net negative, due to the tax.
I won’t go out of my way to avoid them, but I can’t say that I feel positively towards them at tax time. So my mind just ignores them when I receive them.
This hypothesis says that paying of dividends or not has no bearing on future stock prices, nothing more nothing less, but nobody has a clue about stock prices so I choose to call it a hypothesis rather than a theory, our maths teacher at school was a good one
What I understand it to say, is that paying dividends or not has no effect on overall performance. Meaning that it hypothyses that stock price falls at the same rate as dividends are paid out.
Yes, but it assumes a perfectly efficient market. The stock price adjustment on ex-div date is, as far I understand, done by brokers.
While the hypothesis says that dividend policy should have no bearing to future stock prices there is a boatload of data showing that dividend initiators and raisers outperform both the market and dividend cutters.
Sure, but the market also severely punishes dividend cutters, for good or bad reason, which companies are well aware of.
A former colleague was fairly senior in a pharma and told me the leadership fights tooth and nail to maintain their dividend aristocrat status, cutting to the bone and cannibalising everywhere else: overworked, under paid and under resourced staff, bad morale etc only because some Joe Schmoe in the arse end of Iowa wants his holy divies to keep rolling. That’s business decisions being influenced by satisfying random people around the world, so in that sense I am aware of the other side of the coin and understand more…rational types among us bristling at this!
Goofy picks up the faint smoking smell of a smoldering dividend FIRE …
Of course and as always, he can’t help himself from sprinkling a couple of drops of dividend kerosene onto this hardly glowing ember to add some additional flavor …
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I guess because I believe in the dividend irrelevance theory. The metric I’m interested in is net worth, and net worth stays stable with dividends. You could even say dividends lower net worth because of taxes, which would’ve been avoided if they had been capital gains.
