Friday, December 3, 2021

ETNs Of The Month: GLDI, USOI

First, a sale!  Facebook (FB) triggered a sale after declining 20% from its all-time high.  First bought in January 2016, it was repurchased seven additional times but not since May 2018.  It was sold for a 159% gain (17% annualized).  Facebook is a cash cow which seems to have squeezed every imaginable dollar from its current platforms.  Facing an uncertain future with its announced pivot to the Metaverse™ as well as increasing regulatory scrutiny, I am more comfortable owning FB via QQQM and not directly.  

The proceeds from this sale were directed into my favorite basket of yield ETF/Ns:  the index covered calls of QYLD, RYLD, and XYLD; the covered calls of SLVO (silver, previously bought); and new covered calls GLDI (gold) and USOI (oil).

As noted in July, SLVO's yield was an unsustainable 35%; it is currently 28%.  GLDI and USOI are currently yielding 11% and 24% respectively.  Anything above the index covered calls' range of 9% to 12% is a bonus.  Adding GLDI and USOI to SLVO will result in more reliable, less lumpy overall monthly cash flows.


Boilerplate time...

As a stretch goal: for dividend income purposes, I'd like this portfolio to eventually be as much as a 50/50 split between stocks and yield. As seen below, it is currently 54/46.

I am in no rush to flip into yield. I would rather let my winners run forever. However, if in any given month I see no stocks that present themselves as especially good buying opportunities, I have no reservations in simply adding to my bond, preferred stock, and/or covered call ETF/Ns. It is truly a month-to-month situation (as it has always been!).

For the foreseeable future, I want to track my Big Five Two every month, whether I buy them or not.

Amazon (AMZN)
  • $1.73T market cap
  • no dividend
  • $458.0B revenue
  • 15% revenue growth
  • $79.0B cash
  • $152.8B debt
  • $54.7B operating cash flow
  • $9.3B free cash flow

Microsoft (MSFT)
  • $2.42T market cap
  • 0.8% dividend yield
  • $176.3B revenue
  • 22% revenue growth
  • $130.6B cash
  • $78.9B debt
  • $82.0B operating cash flow
  • $49.8B free cash flow


Here's my current portfolio (buy, hold, and sell). As always, I believe in all of these stocks/ETF/ETNs - until I sell them.

Microsoft (MSFT) 16.16%
Amazon (AMZN) 12.48%
Global X U.S. Preferred ETF (PFFD) 11.77%
iShares Broad USD High Yield Corporate Bond ETF (USHY) 11.73%
Xtrackers USD High Yield Corporate Bond ETF (HYLB) 11.60%
Invesco NASDAQ 100 ETF (QQQM) 7.21%
Alphabet (GOOGL) 5.75%
Global X NASDAQ 100 Covered Call ETF (QYLD) 3.79%
Invesco NASDAQ Next Gen 100 ETF (QQQJ) 2.82%
Intuitive Surgical (ISRG) 2.69%
Global X Russell 2000 Covered Call ETF (RYLD) 2.43%
Global X S&P 500 Covered Call ETF (XYLD) 2.34%
Costco Wholesale (COST) 1.70%
UnitedHealth Group (UNH) 1.51%
Verizon (VZ) 1.09%
Visa (V) 1.06%
AT&T (T) 0.94%
Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO) 0.84%
Credit Suisse X-Links Crude Oil Shares Covered Call ETNs (USOI) 0.75%
Credit Suisse X-Links Gold Shares Covered Call ETN (GLDI) 0.75%
ProShares UltraPro QQQ (TQQQ) 0.10%
ProShares UltraPro S&P 500 (UPRO) 0.04%
ProShares UltraPro Russell 2000 (URTY) 0.03%