BlockStoxx income portfolio categories

These ETFs select either a single ticker or multiple tickers to sell option premium on. I use YieldMax, NEOS, SoFi, to name a few. Distribution rates range from 10% to over 100% and most pay MONTHLY! 

Closed Ended Funds, or CEFs, differ from typical ETFs in that they have a fixed number of shares. ETFs, on the other hand generate new shares when investors want to buy, and the ETF buys the shares back when investors sell. Thus, for CEFs, their share value responds to traditional buy and sell market forces on the finite supply of shares. Many CEFs pay monthly dividends from 0-30% annualized yield and sell shares at a discount. 

Do you absolutely love plunging someone else's toilet? Replacing bulbs? or Mowing their lawn? 

Ha! I don't! I've always heard real estate is a great way to improve and increase wealth, but I could never get over all the work and worries. 

Well, thanks to Real Estate Investment Trusts, or REITs (pronounced <reets>), we can still enjoy the benefit of monthly passive cash flow, but without the management headaches. 

There are two main types of portfolios - Growth and Income. 

Growth portfolios are typical of 401(k) and IRA's, where you buy shares of stocks, and you want the value of each share to increase or 'grow' over time. 

Then, when you retire, you can sell off these shares for income.

For income portfolios, you buy stocks and ETFs that pay out cash dividends or distributions, and you use those to re-invest in more shares, thus, achieving both growth, and an ever-expanding exposure to dividend income. 

This section talks about some ETFs or Stocks that could be either tracking indices, or have disruption characteristics that will effect portfolio growth in the future. 

Hedged Funds are erroneously thought to be opposite the market. The reality are that well hedged portfolios protect them from downside risk.

For example, the S&P's average downside is 6-10%. So, equities and assets can be hedged, perhaps with options or inverse ETFs to that level. 

While this can somewhat buffer growth, the removal of worry of portfolio destruction from black swan events is removed, and net returns are actually improved. 

We'll talk more about hedging our income portfolio with options, as well as some tickers that automatically do that. 

It's important to keep part of your portfolio in cash. Not only does it give you a cushion, but adds some funds for surprise buying opportunities. Cash reserve also is important for any accounts on margin, in the event of a margin call - booooo! Don't be left scrambling to deposit funds. Watch your minimum margin balance to prevent this risk.

NVDY from YieldMax does not hold the underlying, but instead uses Treasuries as collateral, then sells covered calls on NVDA to collect premium on synthetic long positions. The cash earned is distributed monthly and is eligible for dividend reinvestment on most brokerages. It also gives some indirect exposure to the AI boom. Monthly distribution rate as of 4/10/24 was 119%.

YieldMax's CONY sells covered calls on COIN (Coinbase). You can see it has just as much volatility as a cryptocurrency. What's attractive to me, is the indirect exposure to crypto in general, and the very high monthly distribution rate of 128% (as of 4/10/2024). And, with a share price of just $26, you could add A LOT of cash to your portfolio every month ... WITHOUT affecting annual contribution limits! Distribution rate 128% (4/10/24).

Though FBY, also from YieldMax, has an attractive monthly distribution rate of 63%, I chose this one mostly for it's relatively consistent cyclic pattern giving me "easy" entries, as well as the overall bullish trend. FBY, therefore, functions as both an income and a growth ticker for my portfolio. Monthly cash income from distribution income selling covered calls on META comes to 63% (4/10/24). 

SoFi's SFY Select 500 ETF doesn't only track the S&P 500 stocks, but also, the ETF allocates the weighting of the tickers by 3 growth signals for sales growth, revenue growth, and forward-looking revenue. It has a low semi-annual dividend yield of around 1-2%, but these SoFi ETF products really shine from their bullish trend and market returns. 

The SFYF SoFi Social 50 ETF holds 50 of the most widely held tickers on the market. The neat thing about this ETF is that the stock allocation is weighted by how much money SoFi members have invested in them. So, the ETF is what SoFi calls "weighted by conviction."

The SoFi Next 500 ETF focuses on the same 3 growth signals, but for mid-caps in the 501st to 1000th largest stocks in the US. Mid-caps have a higher potential for growth and expansion, than the large-caps slow and steady tickers. SoFi ETFs are actively managed. Another thing I like about the SoFi ETF products is that have great NAV and Market returns. 

SoFi's new product THTA Tidal Trust Enhanced Yield ETF is very similar to YieldMax's, except that instead of selling covered calls, it sells credit spreads. This ETF holds Treasuries as collateral, and has a monthly cash distribution of 12% (4/10/24). This ETF is relatively 'young' with an inception date of 11/15/23. For me, this ticker functions as both an income ticker and a stability ticker with its primary holdings of Treasury Notes.

SPYI is a NEOS ETF product. It buys and sells options on a basket of stocks. It generates a cash distribution of about 12% and this is paid out monthly. What I love most about this ticker is the combination of a good yield as well as the bullish trend and indirect exposure to the S&P 500 index. 

BITO ProShares Bitcoin Strategy ETF gives investors access to the price performance of Bitcoin, without having to worry about crypto wallets. The ETF invests in Bitcoin futures, not Bitcoin directly. While I have custodial and non-custodial exposure to Bitcoin directly, it's nice to have a way to add this "future of money" to my investment portfolio too. There are many other Bitcoin ETFs, but I liked BITO for its long track history.

AEM Agnico Eagle Mines Limited is not an ETF, but it serves the function for portfolio exposure to Gold. AEM is the 3rd largest gold miner in the world. What separates it from its peers is it has one of the lowest "all-in sustaining costs" or AISC ... less costs means more profit! 

SLV iShares Silver Trust by BlackRock acts as a hedge against inflation, a store of value, and one of those commodities like gold, that can also hedge against the risks of CBDCs. Silver's price is more volatile, however, due to it being an industrial metal, making it react to the ebb and flow of industrial and manufacturing demand. Due to the volatility, I'd keep market exposure in my portfolio at 5% or less. 

HEGD Swan Hedged Equity Large Cap ETF seeks capital appreciation and is always hedged against market downturns by using long-term ATM or near-the-money put options. 

The ETF is always invested to capture gains from the S&P 500. 

And to offset costs of put hedges, the fund is actively managed with a trading strategy that uses options to generate income throughout each day.