July 2024 High Yield Dividend Income Funds Overview & Stock Market Update | Ep.51 (U.S. Market)

The video starts with an introduction to the monthly series on income-oriented investing, focusing on U.S. listed funds. The host shares his recent experience at a YieldMax event in New York City and then discusses the strong performance of the U.S. markets in the last month, with the S&P 500 up almost 4% and the NASDAQ up 7%.

The video's sponsor, Curve ETFs, is highlighted. They are launching a new growth-oriented technology ETF, KQQQ, as an alternative to the NASDAQ 100. Curve also offers yield premium strategy ETFs for individual stocks like Amazon, Apple, Google, and Microsoft, which use covered calls but are less aggressive than YieldMax, offering more upside potential.

The discussion moves to index-based covered call ETFs. QYLD is mentioned as a rinse-and-repeat strategy with decent distributions. JEPI and JEPQ, the largest in terms of AUM, are detailed, with JEPI focusing on defensive S&P 500 stocks (7-9% yield) and JEPQ on NASDAQ 100 (9-11% yield). Goldman Sachs' GPIX and GPIQ are noted for outperforming JEPI and JEPQ due to their direct S&P 500 and NASDAQ 100 holdings, offering around 8% and 10% yields respectively.

SPYI and QQQI offer higher yields (around 12-14.5%) with consistent monthly distributions, but cap more upside. BlackRock has entered the market with BALI (a JEPI competitor outperforming JEPI) and IVVW, an S&P 500 covered call ETF with the lowest fee (0.25%) and a rinse-and-repeat 1% out-of-the-money monthly call strategy, yielding 10-12%. They also have a similar offering for the Russell 2000, IVWM, with a 2% out-of-the-money strategy and low fees, recommended as the best Russell 2000 covered call ETF.

Roundhill's QQQD and XDATE offer weekly distributions, allowing for weekly compounding. Defiance's QQQY and JPY are highlighted as the highest-yield NASDAQ 100 and S&P 500 ETFs, sometimes exceeding 50% yields, but with varying distributions. The speaker plans to create comparison videos for these ETFs. ProShares' ISPY and IQQQ are identified as the best performers in total return among daily option ETFs, despite slightly lower yields (8-12%) and higher fees (0.55%).

SVQL, from Simplify, is praised for its consistent 15-16% yield and popularity, having passed $1 billion in AUM. Simplify also offers HYG, a safer alternative with varying distributions (around 6-8% yield) through call spreads and investments in T-bills. YieldMax continues to expand its offerings with new ETFs like Snowflake and Airbnb, eventually added to YMAX, an all-in-one equal-weight ETF of all YieldMax funds, offering diversification and less risk than individual stock-based YieldMax ETFs. The potential of holding inverse YieldMax funds to balance out stock price movements for income is also discussed.

For fixed income, Simplify's AGGH is recommended as an all-in-one diversified option for various types of bonds, yielding 8-10% with some dividend volatility. BlackRock offers specific exposure with TLTW (long-term US government bonds), LQDW (investment grade corporate bonds), and HYGW (high-yield corporate bonds, or junk bonds), with HYGW being the best performer. TLTW has outperformed TLT due to covered calls in a rising interest rate environment.

Niche ETFs include Brownhill's YBTC for Bitcoin exposure, offering high yields (20-30%) with covered calls, but capping upside. Sector-specific ETFs include FETP, a technology covered call ETF with 15 top tech stocks and a consistent 25% yield. AIPY is a new AI-focused ETF with similar strategy, expected to yield 25-30%. Clip from CraneShares, which does covered calls on the KWEB ETF (Chinese technology companies), has shown incredible performance, destroying KWEB in a sideways market, highlighting the benefit of covered calls in such conditions.

Closed-end funds are discussed, with CLM trading at a premium (8.3%). The speaker advises Canadian investors against CLM unless they can drip at NAV. RIV is highlighted as the speaker's favorite all-in-one CEF, holding other CEFs, currently at a 3.3% discount, and is expected to perform well when interest rates decline. CFS, an ETF holding other CEFs, is recognized for its incredible performance. Other options include YY YG and HIPS, with HIPS being an alternative all-in-one investing in MLPs, BDCs, REITs, and CEFs. For BDCs specifically, the VanEck BDC Income ETF is recommended for diversified exposure and a 10% yield.

The video concludes by emphasizing the continuously growing American income fund landscape and encourages viewers to stay updated. The host promotes his YouTube loyalty membership, social investing app Blossom, website passiveincomeinvesting.com for coaching and a digital investing package, and referral links for Questrade and Passiv. He also invites viewers to join his Facebook group, Instagram, and LinkedIn.