invest in JEPQ rather than renting property?

[IBRex&me user]

opinion of high dividend growth ETF’s like JEPQ, SVOL, SCHD? Particularly interested in JEPQ which has 90% correlation to SPY, the ‘gold standard’. It has ~9% dividends , it gets it from selling 1 month otm calls. Think it does have a management charge of ~0.35% but so does holding spy or qqq. So sell my rented property and investing in this rather than the typical 6% on my rented property. And super confident that JEPQ growth potential will be higher than property, nasdaq or s&p have always outperformed. Opinions?

 

[mervyn]

the answer is absolutely no. your property is yours, cash flow income. while paper money is just that, paper money. one is real asset, other is financial asset.

 

[SunTrader]

Agree. Though 6% return on rental is chit.

 

[hilmy83]

opinion of high dividend growth ETF’s like JEPQ, SVOL, SCHD? Particularly interested in JEPQ which has 90% correlation to SPY, the ‘gold standard’. It has ~9% dividends , it gets it from selling 1 month otm calls. Think it does have a management charge of ~0.35% but so does holding spy or qqq. So sell my rented property and investing in this rather than the typical 6% on my rented property. And super confident that JEPQ growth potential will be higher than property, nasdaq or s&p have always outperformed. Opinions?

100%

I personally invest in FEPI, similar CC tech etf. Currently at 25% distribution.
100% liquid, no annoying tenants, no maintenance

 

[iprph90]

 

[IBRex&me user]

View attachment 341079

REIT has 0 liquidity, huge bid ask spreads, no options. thanks but no thanks

 

[IBRex&me user]

100%

I personally invest in FEPI, similar CC tech etf. Currently at 25% distribution.
100% liquid, no annoying tenants, no maintenance

FEPI is interesting. just thought what would happen if the company that manages these ETF's (incl spy) collapse? do we get our money invested in them back?

 

[Mel Chizedek]

FEPI is expensive by modern standards, 65bp expense ratio.

 

[IBRex&me user]

FEPI is expensive by modern standards, 65bp expense ratio.

any idea, what would happen to our holdings if the company managing the etf collapses?

 

[Specterx]

FEPI is interesting. just thought what would happen if the company that manages these ETF's (incl spy) collapse? do we get our money invested in them back?

Manager is legally and administratively separate from the funds. It’s pretty inconceivable that a major ETF manager could “collapse”, they just perform what amount to secretarial functions. There’s no liability mismatch or borrowed money involved, etc.

ETNs/ETPs however do have credit risk with the issuer, so caveat emptor.