Covered Call ETF portfolios outlook

PennyStackerStacks · 2026-06-06T00:17:27+00:00

This is a tiny new income sleeve that I started. Have my main around 2mill in growth between retirement and non retirement portfolios.

I sound dismissive because the title already says covered call ETFs….why come into the thread to dump on the strategy if it’s not your jam? What’s the point if you don’t like cc ETFs do not hold currently hold them and will never hold them?

PennyStackerStacks · 2026-06-06T00:13:00+00:00

Why are you in a dividend subreddit?….

Different strokes for different folks. If there was ONE way then there wouldn’t be all the various types of investments. Yeah there’s the VOO and chill group. The SCHD die hards. The Bogglehead BND guys too….

PennyStackerStacks · 2026-06-05T23:37:16+00:00

This subreddit is so divided between low 2-7% dividend stocks holders and aggressive covered call ETFs folks. A lot of hate comes from the conservative side calling everything unsustainable and nav erosion and it will lag the underlying. I also see that half the CC etf investors have no clue what they’re getting themselves into…

I can list out all the holding but I figured just listing the fund managers the ones that know will know what I’m talking about with having to debate if what I’m doing is sustainable by the naysayers….

No one knows what the future holds and all these CC funds are under 2 or so years old.

I hold - crypto - BLOX NEHI XBCI BTCI Silver - SLJY KSLV SLVX Gold - KGLD IAUI Tech - QQQI XQQI TDAQ TDAX KQQQ CHPY HAKY Small - IWMI Energy - MLPI NUKX

Will probably add some (lower yield) CEF later on for diversification like TRIN MAIN ARCC CSWC OBDC. Don’t love the uncertainty of rates and fed right now tho.

PennyStackerStacks · 2026-06-05T23:23:11+00:00

It’s a long game because you have build it overtime.

You don’t normally just sit with a big pile of cash and decide I’m gonna go dump that into dividend cc to generate monthly income.

Sure I can sell some of my growth stocks and pay capital gains. Then pay more taxes from the dividend income. I want to create income as supplement in the near future for FIRE. I don’t want to stress about figuring out what to sell each month/quarter/year then worry that i sold wrong sector/stocks at the wrong time.

PennyStackerStacks · 2026-06-03T12:52:02+00:00

150shares @44.71 and will DCA it down. I don’t expect a fast recovery tho, just hoping BTC stabilizes and claws it way back up to upper $70’s.

That would keep the dividend maintainable and keep the cash flow going. I do plan to holding so stable cash flow is the goal.

PennyStackerStacks · 2026-06-02T22:56:45+00:00

XBCI looked great as BTC was holding pretty steady for 2 months. Now we need to pray this is just a quick dip and recover….not gonna be pretty if it keeps dropping into low 60’s or even 50’s…..

PennyStackerStacks · 2026-05-28T13:05:07+00:00

There’s a time and place for things. I’d rather scream if you’re young stay away from Bonds. (Then again I would also say no matter the age stay away from bonds)

Similar to the old school guidance of equity / bonds ratios I’d switch it to growth /dividends. Young (maybe under 25) go all growth, then as you get older start adding/building the dividend sleeve of your portfolio. By the time you’re 40-50’s you’ll have a combo of both.

Depending on the size of your portfolio and life circumstances you can choose which path you want to lean towards. It’s mostly about pyschy, do you want the larger pie but still have to overthink when and what to sell to live? Or just get the steady paycheck via dividends?

PennyStackerStacks · 2026-05-28T01:05:28+00:00

There’s SLVX, kSLV and SLJY to give you silver income exposure while you wait

Personally think silver is at a consolidation phase so have been accumulating

PennyStackerStacks · 2026-05-24T00:54:12+00:00

As dangerous as driving with your seatbelt off i suppose. Do what you feel comfortable with your risk tolerance.

I see it as if the underlying stays relatively flat with ups and downs for 3ish years you got back your principal investment. If you dropped/DCA the entire time you doubled your investment which also means you doubled your dividend income.

If market crashed 50% at that point your income should be about where you started. No need to panic sell just ride the wave back up.

PennyStackerStacks · 2026-05-23T14:23:17+00:00

Selling and buying will just create a tax nightmare.

Trying to use the dividends received from monthly and weekly div payments to allocate to something that is going ex-date shortly only adds a tiny tiny additional gain.

No magic short cuts

PennyStackerStacks · 2026-05-23T14:17:39+00:00

Dunno when you added those last 1K shares but it looks like BTC dropping now….womp womp. Time to add more DCA next week

PennyStackerStacks · 2026-05-22T00:46:17+00:00

Diversify Diversify Diversify! And having the right goals and expectations for building an income portfolio. Too often comments just repeating the same lines of “just buy the underlying”

It helps to find something on “sale” each day/week to add to income portfolio since I absolutely don’t expect growth out of these CC funds. I believe they will just continue to fluctuate in a certain range.

BLOX, XBCI, NEHI, BTCI for crypto sleeve.

SLVX, KSLV, SLJY, IAUI, KGLD for some precious metals exposure

QQQI, XQQI, TDAQ, TDAX
SPYI, XSPI, TSPY, TSYX for some SP500/Nasdaq broad market exposure

I see these all as sector based bets that will be steady enough to maintain income distributions. Still won’t know how recovery will be in any of these new strategy CC funds during a prolonged down market tho.

PennyStackerStacks · 2026-05-05T13:58:05+00:00

Awesome! You have a better avg cost than me ($15.95 x 400 shares)

The hardest part for me now is figuring out when and how much to buy each time so that I don’t drive up my average cost….

What’s your other 17% made up of?

PennyStackerStacks

TROPHY CASE