I went all-in (mid-five figure investment) today on NEOS Boosted Bitcoin High Income ETF (XBCI) nestled inside my Roth IRA. The final pillar of my Covered Call (CC) income sleeve is in place and ready to help fund a significant portion of my month-to-month retirement income starting in 2027. And just in time for a dividend to drop next week!
My CC income sleeve consists of the following (7) EFT’s:
• CHPY – YieldMax Semiconductor Portfolio Option Income ETF
• FEPI – REX FANG & Innovation Equity Premium Income ETF
• IWMI – NEOS ETF Trust – NEOS Russell 2000 High Income ETF
• MLPI – MLP & Energy Infrastructure High Income ETF
• SPYT – Tidal Trust II – Defiance S&P 500 Target Income ETF
• XBCI – NEOS Boosted Bitcoin High Income ETF
• XQQI – NEOS Boosted Nasdaq-100 High Income ETF
Note: These are seven holdings out of Portfolios of some 37 securities.
Covered Call ETF’s, the New 4% Plan
byu/ShadowBard0962 ininvesting
Posted by ShadowBard0962
6 Comments
It works great until it doesn’t. I was wheeling BITO for the longest time and made a ridiculous return, until I got caught with my proverbial pants down and the crash took about half of my gains away.
So over a long arch I ended up in positive territory, but if I was counting on this to be a reliable income stream that would have failed miserably.
Nice. Sounds pretty dumb!
[https://www.proshares.com/browse-all-insights/insights/covered-call-etfs-the-myth-of-downside-protection](https://www.proshares.com/browse-all-insights/insights/covered-call-etfs-the-myth-of-downside-protection)
[https://www.reddit.com/r/investing/comments/1pq33ni/covered_call_etf_vs_sp500_index_etf/](https://www.reddit.com/r/investing/comments/1pq33ni/covered_call_etf_vs_sp500_index_etf/)
>out of Portfolios of some 37 securities.
Why such a complex portfolio?
[deleted]
Covered call etfs are terrible for retirement
Sell FEPI it has serious NAV erosion issues. NAV erosion causes the star price to drop and prevent share price grwoth. As the star price drops you loose your initialinvestment. Also the dividned payout drops with the share price drop. Eventually you loosely of your initali nvesmtne and your dividned income but the NAV erosion keeps the calculated yield high.
And CHPY is also at high risk for NAV erosion. The only reason why CHPY does currently have NAV version is due the AI crating a lot of chip demand. Once the AI bubble pops CHPY will have NAV erosion. on
The other problem you have is you are overly reliant on covered calls funds. You could sell MLPI and instead invest in EMO with a yeild of 9%, you could also add PBDC 9%, ARDC 9%, CLOZ 8%, PFFR 8%, UTF 7%, UTG 6.4%, JAAA 5.5%, FAGIX 5%. substantial yields without covered calls. And since it is in a IRA no taxes on the income.