as a dividend investor we want funds that pay us well and in the case of qyld and usi they pay at
12 and an 8 dividend yield respectively so in the case of QYLD either way you spin it 19 cents every
single month per share means that every time you buy another share you're giving yourself a monthly
raise and that's pretty darn sweet but with these two popular option strategy etfs which one is best
for you should you buy in more or avoid at all costs do you go for qrld because it has a higher
yield at 12 or you go for new c which gives you that downside protection in the case that
there's another market crash that and more will be discussed in today's video so if you're ready
to get started don't be dumb tap the thumb let's get right to it let's say you take ten thousand
dollars and it's january 2020 and you want to take ten thousand dollars and invest it into qild and
then take another ten thousand dollars invest into nusi between january 2020 and today how much money
do you think you're going to have and which one of these etfs do you think you're going to have more
money in here's what i want you to do let's have a little bit of a game pause the video comment
down below with your guests do you think you'll make more money on newsy or do you think you're
gonna make more money on qyld pause the video comment down below and then hit play i'll wait
did you pause the video let's see if you were right in your guess on which one's going to
generate you more money from january 2020 until now so what i'm going to use i'm going
to use portfolio visualizer we have a 10 000 investment going into both qyld and nusi with
dividends reinvested if i hit calculate and boom guess who wins surprisingly maybe nuci wins with
a final balance of 12 557. versus qyld at 11 347. you basically make a thousand dollars more
by investing into newsie as opposed to qyld for this particular example so were you right in
the comment you got below or were you wrong are you kind of surprised feel free to drop a reply
to your comment and let me know if you're surprised or if you were right on the money
now some of this could be a result of the downside protection that's built into nusi even though it
only has an eight percent dividend it has that downside protection and remember january 2020 we
went through the weathering of the storm of march 2020 and the entire pandemic all right i'm gonna
move over here to the center over here we're gonna talk about nusi over here we're gonna talk about
qyld we're gonna put them head to head and see which one is actually better for the long term and
after we compare these two i'm gonna let you in on my portfolio i've been invested in both of these
since june and july of 2021 we're gonna see how they're doing and see what future potential
could exist with both of these funds so first let's talk about the basics and as
of the recording of this video nusi is going for a total of 27.66 per share qyld is going for a
total of 22.49 per share the official dividend yield right now on nucci is sitting at 7.51
on qyld 11.80 so as you can see they're both very high paying dividend yields especially when the
average right now on the s p 500 sits at only two percent dividend yield qild they're managed
by the global x fund group nusi is managed by nationwide oh yes the very catchy television
jingle commercial and no no no i'm not going to sing it right now if you want to hear me sing the
nationwide commercial check out the newsie video after you check out this one i'll link it down
in the description below both of course come with expenses nusi comes with an expense ratio of 0.68
qyld comes with an expense ratio of 0.60 what that means is for every 10 000 you invest
you'll be paying just about 68 in nusi just about 60 in qyld every single year if you're
new to this if you're new to investing don't worry that doesn't mean they send you a bill
for 60 or 68 what that means is that they pull that out of your portfolio value
in the form of an expense ratio nothing that you actually have to pay as a form of a bill it just
happens within your portfolio now both of these funds track the nasdaq 100 what's nice about the
nasdaq 100 it's actually a collection of the top 100 companies in the overall nasdaq index
now if you're looking for growth both of these funds are more about income producing activities
the growth is actually ticker symbol qqq it still tracks the nasdaq 100 but it's aimed at growth if
you get a long time horizon you're not too worried about dividend income you're not worried about
that monthly income you could look at something like qqq i'll also link that video down below in
the description if you want to check that one out after this one so what qyld does is they basically
write option strategies and the options that they use are the covered call option writing strategy
what that does is it generates income against the holdings that they have on the nasdaq 100 index
the option premiums that they get as a result of that covered call option rating strategy
is passed along to you and i the shareholders in the form of a distribution otherwise known
as a monthly dividend so as they continue that strategy in an actively managed fund they then
pass that on to us either as a distribution as a result of the options strategy or as a return
of capital that allows them to keep that 11 to 12 percent dividend yield now nuci on the other hand
they have the same type of option strategy as far as covered calls but they offer a protective
collar by writing protective parts against their holding what that basically means is it limits
that downside potential so here's the benefit poop hits the fan like it did back in march 2020
guess what happens lucy can help limit that fall whereas qyld could potentially see a bigger hit
here's a graph to share the point you can see they both dropped during march 2020 but qyld
suffers a sharper cliff than nusi now with all of this talk between nuci and qyld which one would
perform better based on how the market's going especially when it comes down to their options
trading strategy well this is where it gets really interesting in a sideway market which means it's
not really doing anything or it goes slightly down qyld will actually win because of their covered
call options trading strategy so what they do is they collect all of that premium based on the
options up front and they make more efficient use of that extra premium but if the market is going
up just slightly new c actually ends up winning because it leaves room for capital appreciation
so how nucia actually writes its protective color gives more room for the holdings within the nasdaq
100 to actually appreciate which means go up in value because qild is using all of its premium to
reinvest either to distribute to the shareholders or to cover all of its losses it usually doesn't
have a lot of room for growth which is why we talked about qqq as an alternative so which one
is right for you well i'm gonna talk to my 50 year old plus crowd oh yes i hear you guys well
in the comments you've mentioned many times hey stop talking always to the 20 and 30 year olds
what about us that are 50 plus how do we make sure that we grow our ultimate suite life well i hear
you when i hear you loudly that's what i'm going to talk about right now between nucian and qyld
should really be something that you consider based on your time horizon obviously retirement's on the
upcoming horizon that's your next big goal is retirement so how does that look well here's
a seeking alpha article by dean young i think he does this very well to illustrate the importance
of both of these funds if you have a one million dollar portfolio and you're in early retirement
check this out the perceived graph based on the author's calculation here shows that the 12 yield
and the more volatile qyld is better long term than nusi but on the flip side of that if you're
later into the retirement maybe you're already in retirement and you're in between later retirement
and going upstairs if you catch my sad drift there well that's where you might want to look
more toward nuci than qild as illustrated here by dean young you can see a difference where that new
c can help pay you off better and it can actually stretch your money a year potentially longer than
qyld so that is something that you need to take in consideration when you're doing your own research
on these two particular funds now let's say you're not 50. i'm going to speak back now to my 20 30
40 year olds and you're you know doing some risky stuff with your emergency fund i know some of you
do this you take your emergency fund you're trying to generate dividends off of it so what you do is
you take that and you push that into something like nusi and that is your emergency fund well
if you decide to do that and you're comparing between nucia and qyld of course nucia with that
downside protection could potentially help you if the market goes down because the last thing
you want is all of a sudden you put all your money into this and the market goes down and then guess
what happens you have an emergency on top of that and you need to pay and your balance is down and
you know how that works you know when it rains it pours so be very careful if you're using your
emergency fund for this type of thing so how are my funds doing in the case of qyld and nuci well
they're doing okay i mean it's not been a whole long time but and they're not doing awesome in the
case of like my cruise line stocks which are up over 100 but they are doing pretty darn well and
we're going to dive into that well since june and july i've invested in both of these as i mentioned
earlier i invested a total of 10 125 dollars in qyld and then i had invested 9 000 15 and 35 cents
into nusi i have been reinvesting my dividends back in which means as of today i have over 300
shares of nuci and 450 shares of qyld if you take my current market amount which is what it's valued
at right now with all the dividends we invested and you compare that to my initial investments
you can see that i'm up on both of them i'm up 181.58 cents on qyld and i'm up 310.11 cents on
nusi and you can see the one that i'm investing less in has grown more from a growth perspective
than QYLD and it could again be what we looked at earlier which is that downside protection now
it's up to you to choose your own adventure next q-ild and usi or do you want the growth of
qqq choose which one you're watching next and we'll see you on the next video