Is RYLD the New King of Income ETFs? (QYLD Old News?)

Описание: Welcome Everyone!

Today’s video is going to be about the covered call ETF RYLD and its recent performance compared to the most popular Income ETF out right now, QYLD. We do a brief description of both funds and how they provide monthly dividend income, expense ratio, age of fund, etc…. Followed by historical performance of the funds. We do side by side comparisons of their history since inception, along with forecast out future performance using historical data and averages. After that, we talk about examples of using margin to generate monthly income for a retired individual, recently laid off, or just someone who wants to use the income to pay certain bills.

When it comes down to it, in terms of dividend yield and payout, both funds are actually extremely close. It is hard to tell which one is actually “better” because both are currently performing extremely well in 2021, along with since inception. RYLD has a very minimal ytd advantage in terms of monthly yield over QYLD, but it is almost negligible. One factor that stands out immensely, is the difference in Covid drops. RYLD lost 43% of it’s value during the Covid 2020 pandemic, vs. QYLD only losing 22% of its value. Both funds have already come back from this loss, in less than 1 year, so it wasn’t a huge factor in determining between these two.

When it comes to Margin investing, both funds are considered low risk in terms of margin maintenance, however, if another recession comes, you could lose a significant amount of your initial investment all at once. You need to always be aware of margin calls, as that would cause you to have to liquidate your securities or add cash to your portfolio, which you don’t want to do. This is always something to keep in mind. However, if using a small portion of your total portfolio, for example 100,000 margin out of a 350,000 portfolio, you could easily make 750-850 bucks a month in extra income by borrowing money from your brokerage due to low interest rates, while keeping a low margin maintenance that would be extremely unlikely to cause you to be liquidated. This is all based off-risk tolerance, but many people consider this a tactic that is worth using if it fits your needs. Remember, I am not a financial advisor, just giving you some options to think about.

In summary, when it comes to my personal opinion, the two funds are too close to one another in terms of overall performance. I think a good balance between the two is the best option, with a sprinkle of NUSI as well for massive crash protection. I don’t need the extra income right now, so these aren’t something I need to put any more money into, but when the time comes I believe I will stick with QYLD for the majority of my monthly income.

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QYLD + Nusi Strategy
   • My QYLD and NUSI Investing Strategies  


DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.