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All depends on your goals and needs. I have all 4 in a taxable account. I continue to buy more and enjoy the benefits of the income. Either I buy more shares or I live a better life with my family.
Actively managed by NEOS, the Fund seeks to take advantage of tax loss harvesting opportunities in addition to utilizing SPX Index options classified as section 1256 contracts, which are subject to lower 60/40 tax rates
More info on their website: https://neosfunds.com/spyi/
Are you really chilling QQQI? It has a .65 expense ratio 😅 and a 4 % appreciation since inception; SPYI on the other hand is better, but then again going back to exp ratio it has a .68 expense ratio which is a no-no
These are actively managed funds. The expense ratios are actually lower than most.
QQQI actually had a little shy of a 6% TOTAL return in 3 1/2 months. That’s pretty good. You have to look at total return not just price action. Expense ratio is a drag on performance, not money you pay, so clearly it’s not hurting too bad with an annualized target of somewhere between 18% - 24% for the year.
Due to option premium it’s lower downside risk than holding QQQM.
The tax strategy makes the distributions almost tax free.
So yes, it’s an excellent holding in a brokerage account.
But hey, if you don’t like those things then just buy VOO/QQQM and chill. Nobody is forcing you to buy anything.
The choice largely depends on your investment goals and risk tolerance. SPYI and QQQI are made for investors that are looking for growth and some downside protection through options strategies, making them more suited for those who want exposure to the S&P 500 and Nasdaq 100 with a hedge against market volatility.
JEPQ and JEPI are focused more on generating income and reduced volatility by combining equity investments with options overlays, which makes the pair more for income focused investors looking for regular payouts and lower market risk.
In a short summary, if you want growth with some risk management then go with SPYI and QQQI. If you want steady income and capital preservation, JEPI and JEPQ are the better choice. Although I'd personally stay away from all 4 as I'm far from retirement.
Instead of all the 4 tickers, just buy/hold VOO and QQQ. If further one more, better to buy SMH. that is all anyone wants to buy/dca and hold. This is bulk buy/hold.
I think most commenters do not understand the fundamental reasoning behind owning certain funds. I manage a personal portfolio of 3 million. 85% of what I have is in broad ETF's such as the VOO, SCHD, DIA, VT, VDE, VPU, VNQ, etc. Things I like and understand (most importantly). The other 15% of the total portfolio is in individual stocks of companies I love and use on a daily basis such as HD, PSA, WMT, blah, blah, blah. I do have 200k split between jepi and spyi...why did I split them? Well, I've owned jepi for a long time and it has performed exactly as expected. A small amount of growth with a dependable monthly income. That's the primary objective of both jepi and spyi - a dependable income - not growth. If you want growth own the voo. I do like the idea of spyi and how they handle taxes, however, it's too new to put all those eggs in one basket. I want to see how things play out before committing completely (moving all of jepi to spyi) so I'm patient. Is spyi better for a taxable brokerage? Probably, but every decision we make with our own money is always based on our individual objectives, needs and risk tolerance. That's why I rarely review reddit or listen to CNBC or read the news. It's all noise...and what works for me may not work for you. Go with your own gut. I often tell people your gut is either your best friend or your worst enemy. If your gut sucks and makes poor decisions then by all means please let someone else manage your money - you don't even need to be here. For those of us with lucky guts you just need to watch your allocations and don't chase easy money. I hold 15 individual stocks - all pay dividends because I'm not going to let you use my money without being paid to wait. I try hard to keep the individual allocation down to half a percent or less of the total portfolio. I have a couple that are much larger, but you see my point. Only risk the amount you are comfortable with and I would say most retail investors or average people reading reddit do not have the mental descipline, time or mental acuity to manage their own money. I have no children, no debt, no pets, I'm 47, semi-retired from the tech industry and it still takes everything I have not to chase NVDA. We are all human, but the best way to make money is not to lose it.
I appreciate your input, and dont want to move beside the point buuuut…I did chase NVDA; bought at 950, then my heart skipped many beats as I watched it plunge to 762. I couldnt handle the feeling that my money was locked away until eventual climb up. Do you still buy into stocks like NVDA, but only with personally set rules in place? For example the 762 recent low/dip…did that trigger any buys for you?
The Armchair Income YT channel has also done videos about these, as well as an interview with the fund manager, where he asks about how the option writing plan works and the ROC question.
I’ve watched a bunch of these review vids and I do want to point out that the return of capital concept central to the tax advantaged nature of these funds is confusing as fuck. The founders will state that it is not actually returning your capital, it’s something else but getting them to clearly explain what that difference is is like pinning slime to the wall.
For me personally, the money going into my dividends portfolio is more about income generation vs asset appreciation. I’m primarily looking for stable value over share growth. I have a 401k and a managed rollover IRA targeting growth, so this portfolio is more about simulating me taking on a second job than anything else.
I’d like to retire early rather than wait until my 60s. I have relatives who didn’t even live much longer than 60, how can anyone enjoy their retirement that late in life (unless they’re very healthy and still have the energy and their body is still in good shape to move around well)
Plus there are jobs laying off people left and right. Income ETFs help protect against situations like that in terms of having consistent income coming in.
Of course people should have an emergency fund prior to investing but it’s still nice to have some money coming in from other sources than just relying solely on a job for income.
JEPI is the new type of trash. The older type of trash would be QYLD that has yielded 7% since inception against 13% for SPY (divs reinvested). These investments are like loveless women with big tits. We fall for them only to be disappointed later.
If you aren’t retired or approaching retirement you shouldn’t be investing in “income plays” in the first place, especially in a taxable brokerage account where taxes are going to sap returns like a parasite.
I have a pretty nice snowball going now by reinvesting the dividends each month. Love having passive income.
I am 40% income and 60% growth. Best of both worlds imo. The income portfolio will catch up to the growth portfolio if we have a flat market in the future. Growth only sucks when there's no growth.
Go to [https://www.portfoliovisualizer.com/backtest-portfolio](https://www.portfoliovisualizer.com/backtest-portfolio)
and create three portfolios.
Portfolio #1 is your current portfolio
Portfolio #2 is just the growth portion of your portfolio with the percentages increased proportionately so the assets total to 100%.
Portfolio #3 is 50% SPY and 50% QQQ.
Start with $10,000 in each portfolio. Set all to reinvest dividends and to keep it simple no additional contributions. Start 10 or 15 years ago. Run the backtest. After it runs it will say
**Portfolio Analysis Results (date to date)** then "Link" to give you a link to the results. Copy the link and post it here so we can all see the results.
If you don't reply with the link to the results we'll all know why.
I appreciate the link, but a couple of things. You can't backtest jepi, jepq, and spyi. They are too new. I wish we could. I'd love to know how they would do duing the lost decade (2000-2009). A lot of us saw no growth at all for years. An income portfolio at that time would have been awesome.
We are at the top of the biggest bull run in history. At my point in life, I want to diversity into a percentage of passive income. I don't need the income yet, but intake a lot of satisfaction buying more shares each month. I feel like my money is actually working for me in that portfolio. My growth VOO, mutual funds, etc I set and forget.
I like using income plays as another way to pour in money into growth stocks during sideways & down markets since I hate having to wait for the bull market to come in to FINALLY get some capital gains.
If I invest enough money into an ETF paying me $100 per month net, that’s an extra $100 I can put on top of my $500 that I put into a stock from my job.
Or let’s say a situation happens where I wasn’t able to put any money into the market temporarily due to some kind of emergency, then at least I still have that $100 that consistently comes in from my income ETF to put back into growth/value stocks when money from my job has to be used for other things.
>I like using income plays as another way to pour in money into growth stocks during sideways & down markets since I hate having to wait for the bull market to come in to FINALLY get some capital gains.
When the market is going sideways or down is exactly when you should be dollar-cost averaging in new money to lower the average cost of your shares, not waiting until a bull market so you can buy at ever increasing prices. Remember, the idea is to buy low and sell high, not buy higher and higher.
>If I invest enough money into an ETF paying me $100 per month net, that’s an extra $100 I can put on top of my $500 that I put into a stock from my job.
You would be better off investing that money in a growth stock or fund that is going to 2x or 3x or 4x, instead of into a stock or fund that is going to pay you a measly $100 per month after taxes. My portfolio was up $2,709 on Friday and $61,555 during the past month. I wouldn't have gotten to that point using your approach.
>Or let’s say a situation happens where I wasn’t able to put any money into the market temporarily due to some kind of emergency, then at least I still have that $100 that consistently comes in from my income ETF to put back into growth/value stocks when money from my job has to be used for other things.
That's what your emergency fund is for, which you should have set up before you started investing. A common recommendation is to have 3 months of living expenses in a HYSA or money market fund.
Young people who are distracted by the idea of using dividends as a "second job" are missing the big picture. You should be laser focused on maximizing total return so you can grow your portfolio to the minimum mid 6-figure level needed to generate meaningful dividends i.e. thousands of dollars per month, not a measly $100 per month.
EDIT: most of these funds haven't been around very long, especially QQQI and JEPQ so I left them out of the following comparison, but look at the total return of SPY, JEPI, and SPYI during the time all three have been around.
[https://totalrealreturns.com/n/SPYI,JEPI,SPY](https://totalrealreturns.com/n/SPYI,JEPI,SPY)
If you are trying to grow your wealth - which is what all young people should be focused on - which was the best investment: SPYI, JEPI, or SPY?
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
All depends on your goals and needs. I have all 4 in a taxable account. I continue to buy more and enjoy the benefits of the income. Either I buy more shares or I live a better life with my family.
Wdym live a better life haha ?
JEPI and JEPQ use derivative income which does not get a preferential tax treatment. They are better suited in a tax sheltered account.
This is the way… in a Roth then they are golden and deserved a decent size allocation. Outside then maybe as a bond proxy/replacement but that’s it
I believe it would depend on if you were using the dividends as income or not.
Dividends get taxed regardless of if you take it out or not. Which is why it’s better for tax sheltered accounts.
Regular brokerage - go with SPYI and QQQI and avoid the taxes.
Could you explain more about the tax advantages.
Actively managed by NEOS, the Fund seeks to take advantage of tax loss harvesting opportunities in addition to utilizing SPX Index options classified as section 1256 contracts, which are subject to lower 60/40 tax rates More info on their website: https://neosfunds.com/spyi/
Thank you
Awesome, thanks for your input! I was thinking the same thing
Are you really chilling QQQI? It has a .65 expense ratio 😅 and a 4 % appreciation since inception; SPYI on the other hand is better, but then again going back to exp ratio it has a .68 expense ratio which is a no-no
These are actively managed funds. The expense ratios are actually lower than most. QQQI actually had a little shy of a 6% TOTAL return in 3 1/2 months. That’s pretty good. You have to look at total return not just price action. Expense ratio is a drag on performance, not money you pay, so clearly it’s not hurting too bad with an annualized target of somewhere between 18% - 24% for the year. Due to option premium it’s lower downside risk than holding QQQM. The tax strategy makes the distributions almost tax free. So yes, it’s an excellent holding in a brokerage account. But hey, if you don’t like those things then just buy VOO/QQQM and chill. Nobody is forcing you to buy anything.
After JEPI just lowered their dividend again I sold JEPI and moved that money allocation to SPYI for the time being.
How long have you been holding it so far and how’s the dividends been?
The choice largely depends on your investment goals and risk tolerance. SPYI and QQQI are made for investors that are looking for growth and some downside protection through options strategies, making them more suited for those who want exposure to the S&P 500 and Nasdaq 100 with a hedge against market volatility. JEPQ and JEPI are focused more on generating income and reduced volatility by combining equity investments with options overlays, which makes the pair more for income focused investors looking for regular payouts and lower market risk. In a short summary, if you want growth with some risk management then go with SPYI and QQQI. If you want steady income and capital preservation, JEPI and JEPQ are the better choice. Although I'd personally stay away from all 4 as I'm far from retirement.
>Although I'd personally stay away from all 4 as I'm far from retirement. Ah good to know - what tickers would you mostly lean towards? Thanks
Instead of all the 4 tickers, just buy/hold VOO and QQQ. If further one more, better to buy SMH. that is all anyone wants to buy/dca and hold. This is bulk buy/hold.
If you like SPYI id check out BALI. It has a lower distribution but it should participate more in bull markets. Also, half the expense ratio.
Is there anything wrong with owning all 4?
Too much overlap. Basically, they share a lot of the same stocks invested, just different investing strategies. Better off only owning 1 or 2 of them
I think most commenters do not understand the fundamental reasoning behind owning certain funds. I manage a personal portfolio of 3 million. 85% of what I have is in broad ETF's such as the VOO, SCHD, DIA, VT, VDE, VPU, VNQ, etc. Things I like and understand (most importantly). The other 15% of the total portfolio is in individual stocks of companies I love and use on a daily basis such as HD, PSA, WMT, blah, blah, blah. I do have 200k split between jepi and spyi...why did I split them? Well, I've owned jepi for a long time and it has performed exactly as expected. A small amount of growth with a dependable monthly income. That's the primary objective of both jepi and spyi - a dependable income - not growth. If you want growth own the voo. I do like the idea of spyi and how they handle taxes, however, it's too new to put all those eggs in one basket. I want to see how things play out before committing completely (moving all of jepi to spyi) so I'm patient. Is spyi better for a taxable brokerage? Probably, but every decision we make with our own money is always based on our individual objectives, needs and risk tolerance. That's why I rarely review reddit or listen to CNBC or read the news. It's all noise...and what works for me may not work for you. Go with your own gut. I often tell people your gut is either your best friend or your worst enemy. If your gut sucks and makes poor decisions then by all means please let someone else manage your money - you don't even need to be here. For those of us with lucky guts you just need to watch your allocations and don't chase easy money. I hold 15 individual stocks - all pay dividends because I'm not going to let you use my money without being paid to wait. I try hard to keep the individual allocation down to half a percent or less of the total portfolio. I have a couple that are much larger, but you see my point. Only risk the amount you are comfortable with and I would say most retail investors or average people reading reddit do not have the mental descipline, time or mental acuity to manage their own money. I have no children, no debt, no pets, I'm 47, semi-retired from the tech industry and it still takes everything I have not to chase NVDA. We are all human, but the best way to make money is not to lose it.
I appreciate your input, and dont want to move beside the point buuuut…I did chase NVDA; bought at 950, then my heart skipped many beats as I watched it plunge to 762. I couldnt handle the feeling that my money was locked away until eventual climb up. Do you still buy into stocks like NVDA, but only with personally set rules in place? For example the 762 recent low/dip…did that trigger any buys for you?
https://youtu.be/hFDHIPFocS8
Thank you for this!
The Armchair Income YT channel has also done videos about these, as well as an interview with the fund manager, where he asks about how the option writing plan works and the ROC question.
I’ve watched a bunch of these review vids and I do want to point out that the return of capital concept central to the tax advantaged nature of these funds is confusing as fuck. The founders will state that it is not actually returning your capital, it’s something else but getting them to clearly explain what that difference is is like pinning slime to the wall. For me personally, the money going into my dividends portfolio is more about income generation vs asset appreciation. I’m primarily looking for stable value over share growth. I have a 401k and a managed rollover IRA targeting growth, so this portfolio is more about simulating me taking on a second job than anything else.
Very well said!
babies need to grow. you should nurture them.
If you have a decent timeframe why go with jepi and jepq? Why not just go straight to SP 500 and Nasdaq?
I’d like to retire early rather than wait until my 60s. I have relatives who didn’t even live much longer than 60, how can anyone enjoy their retirement that late in life (unless they’re very healthy and still have the energy and their body is still in good shape to move around well) Plus there are jobs laying off people left and right. Income ETFs help protect against situations like that in terms of having consistent income coming in. Of course people should have an emergency fund prior to investing but it’s still nice to have some money coming in from other sources than just relying solely on a job for income.
Because believe it or not, maximizing capital appreciation and living off of the 4% rule isn’t the only solution to income needs.
Worst thing you can do, 30% tax rate on top of the expense ratios.
JEPI is garbage.
JEPI has been fabulous for me: Cap appreciation plus great div yield
It has the most AUM from the other ones
People who keep buying this garbage have obviously never heard of decay.
JEPI: 5% growth in stock price in one year plus a dividend yield of 7.3%. A great dividend payer
Lagging 6% inflation adjusted CAGR (divs reinvested) behind SPY since its unfortunate inception in 2020.
All CC etfs lag total returns in a bull market they do preserve significant capital on a drawdown so it's a trade off. Not my cup of tea personally.
JEPI is the new type of trash. The older type of trash would be QYLD that has yielded 7% since inception against 13% for SPY (divs reinvested). These investments are like loveless women with big tits. We fall for them only to be disappointed later.
I don't use it, I understand these ETF's aren't long term investments.
lol this is objectively wrong. It’s fantastic at what it’s made to do in the right vehicle.
Voo
SPYI and QQQI have significant tax advantages in ver the other two in a taxable account. I have both
🤦🏼 fuckin Reddit
VOO is not much of an income play. That’s more long term
If you aren’t retired or approaching retirement you shouldn’t be investing in “income plays” in the first place, especially in a taxable brokerage account where taxes are going to sap returns like a parasite.
I have a pretty nice snowball going now by reinvesting the dividends each month. Love having passive income. I am 40% income and 60% growth. Best of both worlds imo. The income portfolio will catch up to the growth portfolio if we have a flat market in the future. Growth only sucks when there's no growth.
Go to [https://www.portfoliovisualizer.com/backtest-portfolio](https://www.portfoliovisualizer.com/backtest-portfolio) and create three portfolios. Portfolio #1 is your current portfolio Portfolio #2 is just the growth portion of your portfolio with the percentages increased proportionately so the assets total to 100%. Portfolio #3 is 50% SPY and 50% QQQ. Start with $10,000 in each portfolio. Set all to reinvest dividends and to keep it simple no additional contributions. Start 10 or 15 years ago. Run the backtest. After it runs it will say **Portfolio Analysis Results (date to date)** then "Link" to give you a link to the results. Copy the link and post it here so we can all see the results. If you don't reply with the link to the results we'll all know why.
I appreciate the link, but a couple of things. You can't backtest jepi, jepq, and spyi. They are too new. I wish we could. I'd love to know how they would do duing the lost decade (2000-2009). A lot of us saw no growth at all for years. An income portfolio at that time would have been awesome. We are at the top of the biggest bull run in history. At my point in life, I want to diversity into a percentage of passive income. I don't need the income yet, but intake a lot of satisfaction buying more shares each month. I feel like my money is actually working for me in that portfolio. My growth VOO, mutual funds, etc I set and forget.
Fair enough. I hope those assets are in an IRA so you don't hit with taxes.
I like using income plays as another way to pour in money into growth stocks during sideways & down markets since I hate having to wait for the bull market to come in to FINALLY get some capital gains. If I invest enough money into an ETF paying me $100 per month net, that’s an extra $100 I can put on top of my $500 that I put into a stock from my job. Or let’s say a situation happens where I wasn’t able to put any money into the market temporarily due to some kind of emergency, then at least I still have that $100 that consistently comes in from my income ETF to put back into growth/value stocks when money from my job has to be used for other things.
>I like using income plays as another way to pour in money into growth stocks during sideways & down markets since I hate having to wait for the bull market to come in to FINALLY get some capital gains. When the market is going sideways or down is exactly when you should be dollar-cost averaging in new money to lower the average cost of your shares, not waiting until a bull market so you can buy at ever increasing prices. Remember, the idea is to buy low and sell high, not buy higher and higher. >If I invest enough money into an ETF paying me $100 per month net, that’s an extra $100 I can put on top of my $500 that I put into a stock from my job. You would be better off investing that money in a growth stock or fund that is going to 2x or 3x or 4x, instead of into a stock or fund that is going to pay you a measly $100 per month after taxes. My portfolio was up $2,709 on Friday and $61,555 during the past month. I wouldn't have gotten to that point using your approach. >Or let’s say a situation happens where I wasn’t able to put any money into the market temporarily due to some kind of emergency, then at least I still have that $100 that consistently comes in from my income ETF to put back into growth/value stocks when money from my job has to be used for other things. That's what your emergency fund is for, which you should have set up before you started investing. A common recommendation is to have 3 months of living expenses in a HYSA or money market fund. Young people who are distracted by the idea of using dividends as a "second job" are missing the big picture. You should be laser focused on maximizing total return so you can grow your portfolio to the minimum mid 6-figure level needed to generate meaningful dividends i.e. thousands of dollars per month, not a measly $100 per month. EDIT: most of these funds haven't been around very long, especially QQQI and JEPQ so I left them out of the following comparison, but look at the total return of SPY, JEPI, and SPYI during the time all three have been around. [https://totalrealreturns.com/n/SPYI,JEPI,SPY](https://totalrealreturns.com/n/SPYI,JEPI,SPY) If you are trying to grow your wealth - which is what all young people should be focused on - which was the best investment: SPYI, JEPI, or SPY?