ETF Challenge

I find myself arguing with people all the time about the best stocks and etfs that are the best for set it and forget it that will get you the biggest dividends, but also grow your account more as well.

Here is the GIANT issue I have with it. Lets be honest here, Pre-Covid, retail investors were few and far between. But since then they have exploded. Also at the same time, there were a lot of people dipping their toe into investing in Ctypto years ago that have since moved to stock and futures. That’s one of the reasons why I feel idiots who pump XPR crypto are morons. That shit is never going to hit $5 a coin, let alone the $100 those idiots think. You can make bullshit graphs all you want, but fact remains that they add another billion coins per month, diluting the price, and a huge amount of the inflows have moved to stuff like stocks, futures, options, gold, and forex. You need close to a $1 trillion of inflows to get XRP to $10 a coin, which is NEVER going to happen, you’re going to be lucky to get $100 million a year, which won’t even cover the cost of the new coins. But I digress, even crypto shit.

When it comes to stocks and etfs, there are 2 things, that absolutely piss me off.

First is the amount of absolute charlatans selling courses to people. The fact people buy these crush my soul. Think about it, is these people were REALLY sitting over charts and building out plans all week, do you REALLY think they would be able to post constant content online, doing who knows how many hours or recording, followed by a shit ton of editing to get their posts up? No, they don’t have 50 hours a week to make content while also sitting there digging in charts 12 hours a day. They are driving that Ferrari because you idiots pay them $200 a month for their content, which is literally nothing but pulling info from Reddit.

When it comes to this stuff, one of my biggest issues is how much they are actually hurting people. It kills me. OK. I’m a very profitable trader. But there are a few things here. First off, I don’t have time to waste spending dozens of hours a day to make you content. And Second, most importantly, I’m not going to tell you what my strategy is, because if 1000s of people start doing it, the market will adjust, and it will become unprofitable pretty damn quick.

Actually, I take that back, there is a 3rd thing that pisses me off.

If you watch Youtube videos, or god forbid pay to take classes. None of these people are actually giving you some sort of new strategy. They are just repackaging shit that has been around for 30 years.

I’ll admit, ORB is pretty profitable. But you don’t need to PAY to do it. It’s pretty goddamn simple. Mark out the first 15 minute candle high and low. Wait for it to break above or below on the 1 minute. Wait for it to retest. If it bounces up, then buy calls if it goes down, buy puts if it goes down. That’s it. No need for a 5 hour class that costs $500.

All of the “strategies” are regurgitated stuff from 20 years ago. And this is what pisses me off when it comes to the “set it and forget it” funds. There have been A SHIT TON of new ETFs in the last few years that are total set it and forget it funds where you will make a ton of money. There are things like SMH and DRAM that will make you a mint, yeah they are going to have ups and downs, but in the long run you’re going to print.

But the problem is, to me, which pisses me off, is there are just a metric ass ton of content creators of Instagram and tiktok who basically did nothing but read a book from 20 years ago and pimp the shit out of things that are absolutely going to destroy your portfolio.

First is Reality Income, ticker O. I fucking hate this fund. They are a dividend “aristocrat” because they have increased their dividends over 100 quarters. Sure, it sounds “nice” that they keep increasing their dividends. But they fail to mention most of these increases, like the are one are 5 one hundredth of a cent. We’re not talking 5 cents, where if you had 100 shares would be $5. It’s 5 one hundredth of a cent. So if you had a 100 shares, your dividend increase is 5 cents. That’s it. Meanwhile the stock itself is a turd. This stock will only work when we are in a super good economy. With crazy low interest rates. They make their money off property investments. Back in 2015 when the interest rate was ZERO it made a ton of money. The stock never did much, but their dividend yield was around 18%. Flash forward to now days when the interest is around 4%. That means they are losing money on all their investments

In The last 5 years, the share price had dropped 3% and they went from a 13% yield down to a 5% yield. The dividends don’t barely keep up with NAV erosion. If you invested $10,000 into it 5 years ago even doing DRIP for dividends. You would have $10,386. Pathetic. And also 5 years ago you would have gotten $108 month in dividends. Now you would get $41

All these content creators keep telling you how great it is, when they are working off shit that is 20 years old.

Second thing is SDHC. One of the biggest ETFs there it. I tried to run a script and there are 18,922 tiktock and 83,518 instagram accounts that have posted things telling you to invest in SCHC since Feb 1st. There are literally thousands of youtube channels telling you that if you want to be a millionaire invest in SDHC.

This fund is a turd that only managed to hit a home run during covid. Its mostly consumer staples. So when everything crashed during covid, this stayed pretty straight.

Is it a shitty fund? No, because it will comfort the loss during a huge draw down.

But is it going to make you wealthy in the long run? Not a goddamn chance.

The thing is, it’s great in a bear market, because it barely moves. But the thing is, when there is a bull market, it makes basically nothing. In the last 5 years, it has made 27% total. For 5 years. Meanwhile if you just bought the S&P, something like SPY it went up 73%

People talk about it because of it’s dividend yield. Which like Reality Income, was Nice……. 20 fucking years ago. Their dividends are all over the place, and last week they just lowered the dividends for next quarter. The yield itself is only 3.24%. Again, these “content creators” are stuck regurgitating things from 10-20 years ago. 10 years ago the dividend yield was 13.8% which was nice.

You CANNOT listen to any of these idiots online.

To prove my points. Today I am going to put $800 into 4 different funds. And every day few days I will track the progress. I’m not putting a dime into O because that’s just ridiculous, it’s a guaranteed loss.

SPYI

QQQI

SCHD

VTG

All dividends will be DRIP

Lets see where we end up after a month, 3 months, a year. I’m pretty sure I know which one will be the highest (SPYI) and which one will be the lowest, by far (SCHD)

But I might be wrong, who knows, maybe I have no idea what I’m doing, but I’m going to put my money where my mouth is.