I am grateful to folks on this subreddit for sharing their dividend strategies. Many of them have helped with my thinking, but they have also led me to some questions about diversification.
Over the past few years, we have seen growth in different CC ETFs and other high-yield funds. Is there value in holding different versions of similar CC ETFs?
For example, if you own JEPQ is it also worth holding QQQI? Or would that be diversification overlap (not sure if that phrase makes sense).
Just for fun, I was playing around with a $425k paper portfolio on snowball analytics, split into 4 chunks of investments. https://snowball-analytics.com/public/portfolios/BrSNMowPaT
My idea was to have different CC ETFs that earn dividend income that would power the SCHD/CGDV portion.
I don't have a good rationale for this, though. I will say that the estimated monthly dividend amount of $4k more than covers my family's monthly expenses, so I like that aspect.
In summary, is there value in having multiple different CC ETFs if they have similar holdings and yields in the name of diversification
submitted by /u/vapidspants
[link] [comments]
Over the past few years, we have seen growth in different CC ETFs and other high-yield funds. Is there value in holding different versions of similar CC ETFs?
For example, if you own JEPQ is it also worth holding QQQI? Or would that be diversification overlap (not sure if that phrase makes sense).
Just for fun, I was playing around with a $425k paper portfolio on snowball analytics, split into 4 chunks of investments. https://snowball-analytics.com/public/portfolios/BrSNMowPaT
My idea was to have different CC ETFs that earn dividend income that would power the SCHD/CGDV portion.
I don't have a good rationale for this, though. I will say that the estimated monthly dividend amount of $4k more than covers my family's monthly expenses, so I like that aspect.
In summary, is there value in having multiple different CC ETFs if they have similar holdings and yields in the name of diversification
submitted by /u/vapidspants
[link] [comments]