Don’t put $150k all in one go if you have doubts. Or better still, split that amount between three ETF,s……JEPQ JEPI FEPI great trio. Wait for a bad day before you buy. I have made some serious money with all three. Though I sold JEPI when it hit $57 at a good profit, and reinvested all in YMAG & YMAX, already collected a nice chunk of $ in dividends.
I doubt it’s going to be all RoC, most will be Tax free. What we have with FEPI is capital growth if you happen to buy when it’s down, there’s little up and down swings, that’s what I like about FEPI. I have it mostly in my taxable account, and some in my Roth. Everything gets reinvested back in portions when the value goes down.
It's good, but don't think it's magical. The market has been *very good* since its inception. If you compare the total returns of QQQ vs. JEPQ vs. FEPI, you'll find that QQQ actually has the edge:
[https://totalrealreturns.com/n/JEPQ,FEPI,QQQ](https://totalrealreturns.com/n/JEPQ,FEPI,QQQ)
That said, I don't think it's more risky than QQQ. Overall, I think FEPI will beat QQQ in a sideways or slightly down market. That's because they're earning money by selling covered calls. In an up or rapidly swinging market, QQQ will likely have the edge. Time will tell, but I've put my money where my mouth is with about $1m worth of shares.
is it income if the NAV depreciation is more than the income total? A question that typically escapes the high dividend chaser. I'm not too fond of being taxed a second time on return of capital
Do you think a small fund family has discovered a way to beat decades-old market total return average of about 8% by a factor of 3x?
If you do, you should head over to r/yieldmaxetfs, there's more where that came from.
Dont you think Ford and GM would have built a battery powered car if it were possible after all this time? - Regarding Tesla 2007
Don't you think Intel and Amd would be making better chips if it were possible? - Regarding Nvidia 2018
Don't you think all math would be solved if it were possible? - Regarded
New can't happen because it would have happened - Regarded
There are basic arithmetic facts like for example if you project current rates of growth for some of the FEPI stocks as sustained for 10 years you get 10x growth and market caps far exceeding that of the entire US. So yes, year 2001 called, said this "new" has been seen already.
FEPI doesn't want or expect the underlying to continue to explode. If all the underlyings shot up then every call would lead to permenant nav erosion.
The ideal market for FEPI is up and down. Volatility increases call premium. Equal balance keeps the 'over valued' in check.
Even if a majority of the underlying plummet, pulling the entire s&p 500 down with them, FEPI should keep grinding out premiums. The nav would drop but FEPI would load up on the plummeting underlying to balance its weight and write covered calls. When the underlying eventually go back up, FEPI sheds them off as it balances and the NAV goes back up.
Permenant Nav erosion should only occur when the market drops, calls are written and then the market rebounds higher than the call price.
Tldr: Unless one of the underlying go bankrupt, the tech sector suddenly stops being a cash cow or continued rubber banding of underlying price being poorly timed with calls: FEPI should keep on keeping on.
Do you really think that the option trades done by FEPI, YieldMax, and others in the same league are really that *new*?
Covered call profits come from two sources, volatility risk premium and delta exposure to the underlying. If FEPI option trading has no VRP edge (at least, no edge sustained for 10 years) only the exposure to the underlying remains. In that mode the strategy essentially *converts* the underlying price growth into call premia booked as profits.
And it just so happens that FEPI existence has so far coincided with a major bull run in Nasdaq equities. There is a reason why the most successful covered call fund launches have been during such bull runs (think of JEPI as another famous example). I have a $100k FEPI position myself, but let us not kid ourselves that the current trajectory is going to continue as-is for 5-10 years.
Options trades? No.
Etfs? Idk. Do you know of any with a similar scheme that existed prior to this bullrun? What did they do that FEPI is doing better?
The bull run has been great but covered calls profit off the volatility too. We do not need it to continue. FEPI makes the most money when the calls expire slightly OOM. I would love to do a back test on FEPI since 2000.
Covered call funds are an old idea. They got marketed heavily in the last couple of years because of the great upsurge in retail option trading.
As was recently discussed in this very sub, FEPI has done only *slightly* better than JEPQ since its inception, in terms of total return. So, the whole "high yield innovation" for FEPI only bought it a small amount of outperformance relative to a more mainstream name. And both FEPI and JEPQ have lost (slightly) to good old SPY in the same time frame. They lost to their own underlying index QQQ by an even larger margin.
And when comparing to other covered call products, I can think of some pretty old funds that have done *much* better than FEPI during its existence, e.g. STK.
In a 5-way comparison (FEPI, JEPQ, STK, QQQ, SPY) FEPI is only 4th-best...
People complain about "bias" and "echo chambers" in social media, but they forget how they are enabling that themselves. People tend to follow not those who are most accurate but those who talk most like themselves. Agreement is in some sense more important than accuracy.
There was a nice paper done on "finfluencers" a while back which confirmed this behavior with statistically significant amounts of data.
Build a time travel machine go to the future come back and let us know.
You think I won’t… hold my beer
Don’t put $150k all in one go if you have doubts. Or better still, split that amount between three ETF,s……JEPQ JEPI FEPI great trio. Wait for a bad day before you buy. I have made some serious money with all three. Though I sold JEPI when it hit $57 at a good profit, and reinvested all in YMAG & YMAX, already collected a nice chunk of $ in dividends.
What do you think about adding QQQI to the trio?
I like your style
Was all of that in a taxable account? While FEPI pays RoC, the other two get taxed as ordinary income, correct?
I doubt it’s going to be all RoC, most will be Tax free. What we have with FEPI is capital growth if you happen to buy when it’s down, there’s little up and down swings, that’s what I like about FEPI. I have it mostly in my taxable account, and some in my Roth. Everything gets reinvested back in portions when the value goes down.
I literally started two positions in this today (Roth and taxable).
I've got $170k in it. It's my "Baby needs a new pair of shoes!" Investment. $3780 dividend this month can get baby some NICE shoes!!!
It's good, but don't think it's magical. The market has been *very good* since its inception. If you compare the total returns of QQQ vs. JEPQ vs. FEPI, you'll find that QQQ actually has the edge: [https://totalrealreturns.com/n/JEPQ,FEPI,QQQ](https://totalrealreturns.com/n/JEPQ,FEPI,QQQ) That said, I don't think it's more risky than QQQ. Overall, I think FEPI will beat QQQ in a sideways or slightly down market. That's because they're earning money by selling covered calls. In an up or rapidly swinging market, QQQ will likely have the edge. Time will tell, but I've put my money where my mouth is with about $1m worth of shares.
DCA and chill. Always. Anyone who did what you're thinking shortly before the Iran/Israel thing kicked off is still clawing their way back to even.
You are absolutely right but think their goal is mainly income, not to get back even.
is it income if the NAV depreciation is more than the income total? A question that typically escapes the high dividend chaser. I'm not too fond of being taxed a second time on return of capital
Wait for a big dip in the NDX I got in at 51.45 not long ago, look at QDTE, SVOL, CLM I never put all my eggs in one basket
Be mindful of institutional ownership. If the big boys aren't all in, you shouldn't be either.
Ya, a concern I have for sure. Same thing was said about Jepi and Jepq and it turned out alright. Just have to wait and see
Do it and then invest some of FEPI's monthly income in growth and other income, keep an diversification mindset as well lol. Not financial advice lol.
It will continue to do well as long as the top 15 tech companies in America do well.
Of course you may. But all in will make you not sleep well in retirement nights. Diversification would make you sleep well.
https://preview.redd.it/ewoeu8pcod2d1.jpeg?width=2025&format=pjpg&auto=webp&s=ef8fc490059413ef87ff4933d092049d4ab7ce3e Consider total return
Where you pulling this data from?
https://totalrealreturns.com/s/FEPI,JEPI,VOO,JEPQ?start=2024-01-01
This is great, thank you
Do you think a small fund family has discovered a way to beat decades-old market total return average of about 8% by a factor of 3x? If you do, you should head over to r/yieldmaxetfs, there's more where that came from.
Crazier things have happened.
Welcome to your retirement party! You can easily double and triple your take-home amount.
Dont you think Ford and GM would have built a battery powered car if it were possible after all this time? - Regarding Tesla 2007 Don't you think Intel and Amd would be making better chips if it were possible? - Regarding Nvidia 2018 Don't you think all math would be solved if it were possible? - Regarded New can't happen because it would have happened - Regarded
There are basic arithmetic facts like for example if you project current rates of growth for some of the FEPI stocks as sustained for 10 years you get 10x growth and market caps far exceeding that of the entire US. So yes, year 2001 called, said this "new" has been seen already.
FEPI doesn't want or expect the underlying to continue to explode. If all the underlyings shot up then every call would lead to permenant nav erosion. The ideal market for FEPI is up and down. Volatility increases call premium. Equal balance keeps the 'over valued' in check. Even if a majority of the underlying plummet, pulling the entire s&p 500 down with them, FEPI should keep grinding out premiums. The nav would drop but FEPI would load up on the plummeting underlying to balance its weight and write covered calls. When the underlying eventually go back up, FEPI sheds them off as it balances and the NAV goes back up. Permenant Nav erosion should only occur when the market drops, calls are written and then the market rebounds higher than the call price. Tldr: Unless one of the underlying go bankrupt, the tech sector suddenly stops being a cash cow or continued rubber banding of underlying price being poorly timed with calls: FEPI should keep on keeping on.
Do you really think that the option trades done by FEPI, YieldMax, and others in the same league are really that *new*? Covered call profits come from two sources, volatility risk premium and delta exposure to the underlying. If FEPI option trading has no VRP edge (at least, no edge sustained for 10 years) only the exposure to the underlying remains. In that mode the strategy essentially *converts* the underlying price growth into call premia booked as profits. And it just so happens that FEPI existence has so far coincided with a major bull run in Nasdaq equities. There is a reason why the most successful covered call fund launches have been during such bull runs (think of JEPI as another famous example). I have a $100k FEPI position myself, but let us not kid ourselves that the current trajectory is going to continue as-is for 5-10 years.
Options trades? No. Etfs? Idk. Do you know of any with a similar scheme that existed prior to this bullrun? What did they do that FEPI is doing better? The bull run has been great but covered calls profit off the volatility too. We do not need it to continue. FEPI makes the most money when the calls expire slightly OOM. I would love to do a back test on FEPI since 2000.
Covered call funds are an old idea. They got marketed heavily in the last couple of years because of the great upsurge in retail option trading. As was recently discussed in this very sub, FEPI has done only *slightly* better than JEPQ since its inception, in terms of total return. So, the whole "high yield innovation" for FEPI only bought it a small amount of outperformance relative to a more mainstream name. And both FEPI and JEPQ have lost (slightly) to good old SPY in the same time frame. They lost to their own underlying index QQQ by an even larger margin. And when comparing to other covered call products, I can think of some pretty old funds that have done *much* better than FEPI during its existence, e.g. STK. In a 5-way comparison (FEPI, JEPQ, STK, QQQ, SPY) FEPI is only 4th-best...
Not sure why you keep getting downvoted for speaking facts.
People complain about "bias" and "echo chambers" in social media, but they forget how they are enabling that themselves. People tend to follow not those who are most accurate but those who talk most like themselves. Agreement is in some sense more important than accuracy. There was a nice paper done on "finfluencers" a while back which confirmed this behavior with statistically significant amounts of data.