NAV
Navistar International
stock NYSE

Good answer. But I would argue against the idea that we’ve just come out of a long bull market. For one thing, that focuses mainly on the NAV and the NAV return on bonds has been dreadful since Covid - that bull ended years ago. But when you include reinvested divs, the picture is more favorable. And as long as your horizon exceeds your duration, reinvested divs should make you whole whether you’re in a bull or bear.
So if the taxable fund is intended for an efund or car purchase or house downpayment or other short term goal, I’d keep the duration short (and the bond allocation high). If for long term investing, 5-10% intermediate term bonds is the play.

Go compare AUR NAV to share price, cash burn, runway, and commodities/freight rotation.

If you aim for higher than 8% dividend yield, it eventually doesn't work. Most instruments offering more than 8% use descructive retruns of capital. Even worse, Covered Call funds which eventually erode NAV.

As kind of a year-end evaluation of my income portfolio, yesterday I sat down and worked out the NAV, dividend, and total returns of the funds I'm currently in. Here's the data, sorted by total return:
https://preview.redd.it/hvhh3nzfat5g1.png?width=792&format=png&auto=webp&s=020eba0b8fdd1c1076d2355ed94d6250e9deda24
The "$ 1yr dividends" column is not the current dividend times 12, it's the actual dividends the fund paid out over the last year. Total return is based on this, not on the current dividend. Current dividend info is just there for my reference. I have a goal of averaging 10% paid out monthly, I'm retired and it's part of my monthly cash flow.
I didn't own all of these for the full 12 month period, but I wanted to see how the funds I own performed relative to each other.
I was surprised by both the first and last place finishers. AOD isn't discussed much here and yet it's been the best, with a very strong NAV and current dividend yield and total return. Fortunately I've been in it for almost the entire time so I got to see the bulk of those gains.
SPYI is mentioned frequently and yet it ended up in last place. I haven't been in it very long, but I'm above water on NAV and got a few months of solid dividend payouts, so it's worked out for me.
Based on this data, I'm probably going to rotate out of the bottom three (JEPQ & BDJ & SPYI) and find a new home for that money. Yeah, I know, past performance doesn't necessarily indicate and all that stuff. But it tells me something about how the fund is run.
Basically what I want is the best NAV growth I can get on a portfolio that collectively delivers me about 10% income, paid out monthly. Suggestions for other funds that meet this criteria?
On my radar at the moment is QDVO. Here's how the above works out for it:
https://preview.redd.it/zftnfut4ct5g1.png?width=792&format=png&auto=webp&s=0bed102384b70ed4b6e259d84324ab850bb3a88f

Here's the problem. On average, the market has grown by about 10% per year. That includes dividends and capital gains. But also, inflation is about 3% on average. So that results in a 7% effective return rate.
That 7% effective return also assumes 100% in equities. That's fine when wealth-building, but when retired, wealth-preservation and income is the goal, so being 100% equities isn't the best portfolio, a 20-40% fixed income position (depending on life expectancy) is an important part to ride out equity drawdowns. This fixed income position lowers that 7% effective return to closer to the 5% range (8% total minus 3% inflation).
The problem with going all equities and a high dividend/withdrawal rate is that it works in good times, then terribly fails in bad times. Looking at the last 15 years, it totally seems that a high dividend yield without NAV erosion is totally possible. But (for example) from 2000-2009, it would be catastrophic.
I can never get behind individual stocks. Too much exposure to one company. Sure, O or MAIN could be doing well, but what happens in 5 or 10 years? I totally can get behind derivitive income funds like DIVO, IDVO, GPIX, SPYI, BALI, but only as a subset of a portfolio.
I'm 56 and retired. I would select a mixed portfolio of ETFs. 75% equities (20% international), 25% fixed income. The 25% of derivative income funds is split between several, because each had a slightly different strategy.
* 20% DGRO
* 20% FDVV
* 10% VYMI
* 5% SPYI
* 5% GPIX
* 5% DIVO
* 5% BALI
* 5% IDVO
* 5% BINC
* 5% FBND
* 5% VCIT
* 5% USHY
* 5% SGOV

It’s down -68%. How is it good for income with that much NAV decay?

Just look at NAV since inception.

Look, almost all of the YM single ticker etfs are losers. Every single one will be a loser over time. Its not just me giving an opinion either. Its math. Now, if they drastically changed how the worked the funds may e some could succeed.
MSTY is a different animal. You are betting on a covered call fund that has no upside potential, and I mean ZERO upside potential. It can not recover NAV over long term by its structure. Said etf tracks a leveraged play on one of the most volitile assets in the market. MSTR, losing favor fast due to Saylors insistence on using investors capital to leverage his speculation on a speculative asset.
GTFO and buy Bitcoin proper

You can collect but your NAV of your bonds may drop on paper.
But if you hold to maturity it doesn't matter I guess.

it is a stupid reason, but at Fidelity (I'm hoping JPM isn't like this) you can only put in a fractional ETF trade order during market hours if you want to use all your available funds to purchase the ETF. If you try to place that same order outside of market hours, it will give you an error saying you need to hold back at least 10% of your available funds to account for market movement. With Mutual funds, no matter who your brokerage is, you never have that problem because they don't even execute the order till the market is closed and the NAV is calculated.
In other words, Mutual funds allow me to purchase anytime I want. ETF, at least at fidelity, do not. So i was having to set alarms to go off while i was at work to remind me to get on the fidelity app and place a ETF order. I didn't like having to do that. When I'm at work, i think about work things, not investing/financial things.
Fingers crossed JPM will let you place a fractional ETF order anytime you want without having to hold back any of the available funds.

Yup.. also called buy write funds. There are also downside protection funds that auto buy puts.
Can yield 8-20+%, helping mitigate downsides, but one does have to watch for NAV erosion.
IVVW, QYLD, JPEQ and so forth. Stuff like NUSI.
One of my favorites lately is TLTW, a buy write on the TLT. Think about that one and how that works out.
But beware of things like Yieldmax funds that have too high of a NAV erosion. They are almost reverse mortgages.
But young folks should still more heavily weight on index funds, as growth over decades probably still far outweighs the buy writes/covered call/downside protection funds. But these are pretty good at generating yield over corporate bond funds.

I am having some issues with it too but it’s mostly with FLCNX NAV adjustment messing up the account balance and percent change reporting. It is showing -7.5% loss on one day for FLCNX.

Understanding the **tax implications of QQQI/SPYI and their Return of Capital (ROC) distributions** is something I’ve been researching for a while, and I see a lot of misinformation floating around. Please feel free to **add on or correct** any of this — my goal is to make a clear, accurate guide for **anyone trying to report taxes correctly in the future**.
# Key Points
1️⃣ **ROC reduces cost basis per lot, not by averaging**
* Each lot has its own cost basis.
* Lots with lower basis can hit **zero first**, and any ROC allocated to those lots becomes **taxable capital gain**.
* Lots that still have remaining basis continue to receive **non-taxable ROC**.
2️⃣ **Fidelity 1099-DIV reporting**
* Fidelity reports **all ROC in Box 3 (Nondividend Distributions)**, even the portion that exceeds your basis.
* They do **not automatically reclassify excess ROC as capital gains** in Box 2a.
* Cost basis is adjusted internally by Fidelity, but your **tax reporting may still require manual adjustment** for post-zero-basis ROC.
3️⃣ **Post-zero-basis ROC is LTCG, not 60/40**
* Once a lot’s cost basis hits zero, additional ROC is taxed as **long-term capital gain** (LTCG).
* The “60/40” split often cited refers to **the ETF’s internal tax structure and NAV behavior**, not how ROC or post-basis-zero ROC is taxed for you personally.
4️⃣ **Helpful hint for simplifying tax reporting**
* Take a **snapshot of all your positions**.
* Wait for the **official ROC from the 1099-DIV**.
* Upload both to an AI (like ChatGPT) to calculate:
* **Box 3 (non-taxable ROC)**
* **Box 2a (capital gains from post-zero-basis ROC)**
* This can save hours of manual math, especially if you have **hundreds of lots**.
**Bottom line:**
* Track ROC at the **lot level**, not as an average.
* Fidelity adjusts cost basis internally, but **manual review may be needed for taxes**.
* Post-zero-basis ROC is **long-term capital gain**, not 60/40.
* Using AI with your holdings and the 1099-DIV can make reporting **much simpler and accurate**.

Hello, please explain what you mean by ROC not being destructive to the NAV?

Income of 6.8% while preserving NAV? It's absolutely possible, but not long-term. Why 6.8% yields? Are you familiar with the 4% retirement withdrawal rule?

**VOO** is an ETF (exchange-traded fund), which means it trades on an exchange throughout the day like a stock. You can buy or sell shares at real-time market prices whenever the market is open.
**VFIAX** is a mutual fund, which only transacts at the end of each trading day based on its net asset value (NAV). Regardless of when you place your order during the day, the trade executes at that day's closing NAV price—you cannot buy or sell at intraday prices.

1. MF dividends are not same as Stock dividends. Actually, MF dividends are "not dividends" at all. It's like you withdraw money from left pocket and put it in your right pocket.
For example:
- fund's current NAV = Rs 40
- dividend declared = 30%
- dividend amount = 30% of face value of Rs 10 NAV = Rs 3
- post dividend, fund's NAV = Rs. 37
So, what's the extra gain = NIL
2. Plus, No Mutual fund or Stock is under any obligation to declare dividends. It all depends on their 'surplus'. They may declare dividends for a few months and may skip for decades.
3. Investing in a MF to avail dividends is a futile exercise, and loss making too from tax perspective as the Finance Act 2020 imposed TDS on dividend distribution by Mutual funds from 1.April.2020 onwards.
4. Go through the following 👇🏼 to get out of the illusion of GUARANTEED INCOME from MF Dividends:
https://m.economictimes.com/wealth/invest/why-dividend-option-is-the-worst-way-to-get-mutual-fund-returns/amp_articleshow/64708783.cms

Buying more VZ, MAIN
holding Tgt and Dow until NAV recovers a bit.
Apple, Costco on drip no new additions planned.
Selling CWENA.

* Behavioral for one: ETFs may be more likely to encourage bad investing behavior in some people, such as trying to time the market or paying too much attention and jumping in and out of things.
* No premiums/discounts to worry about, MFs get NAV.
* MF investors aren't the ones dealing with bid/ask spreads.
* Schwab users can't do fractional ETF trading, but they can with MFs at this time. This also means the initial buy-in for MFs is lower for Schwab users ($1?) than it is for an ETF (whatever 1 share costs).
* It may be more common now, but there may still be a gap between number of places offering auto investing in MFs vs those offering it for ETFs.
* MFs can be set up by brokerages to combine a "sell A to buy B" as a single input (since I've seen people ask about this before: it does not get around the capital gains tax).
* There's 4 zero expense ratio MFs that I'm aware of (the Fidelity Zero funds), only 2 ETFs (BKLC, BKAG, let me know if I'm missing any)
Are a few reasons.

Because VICI is an actual company with a tangible competitive MOAT. Because the 6% is uncommon for its standard yield. I dont count covered call funds if that's the usual you're talking about for high yields as I run covered calls myself and dont intend on paying an expense ratio on something I can do myself at a better return rate.
And for IVR specifically that is a NAV erosion yield trap. Its down over all -75% in 5 years. You're not collecting a dividend the value is falling and they're just giving you back what you invested slowly. In other words youre burning money.
Furthermore, a ~16% yield (which WILL go down randomly as you'll see when you own something like that longer.) The return on your investment is 80% over five years. However with a NAV erosion of -75% you instead made 5% in a very tax inefficient way over 5 years.
...... VICI would pay 6.5% this year alone and you'd actually own a good investment that grows its dividend yield even slightly.
Edit: for clarity.