How I Plan To Increase My High Yield ETF Portfolio Income (Do THIS)

Summary

In this video, the creator discusses their strategy for a high-yielding ETF portfolio on Robinhood, currently valued at $28,749.23. They detail their income investment approach, aiming to reinvest dividends to grow the portfolio. With a goal to build up positions in specific ETFs to $10,000 each, they plan to use weekly distributions to purchase more shares, focusing on quality income that doesn't erode capital. The creator also shares their thoughts on the Russell 2000 Index and their intention to live off the portfolio's income in the future.

Takeaways

• 📈 The speaker's high-yielding ETF portfolio in Robinhood is currently valued at $28,749.23.
• 📊 The portfolio has seen a weekly increase of 1% ($546.4), with cryptocurrency contributing to this growth.
• 📉 Despite a 17% decrease in the past month, the portfolio is up 2% in the past week and 99.47% year-to-date.
• 💹 The speaker's goal is to use the portfolio's income of over $1,000 per month to fund new ETFs.
• 🚀 The strategy involves being a total return investor while also focusing on income, aiming for the best of both worlds.
• 💰 The speaker plans to reinvest dividends within the portfolio rather than withdrawing them.
• 📅 The speaker outlines a schedule of upcoming dividend payments from various ETFs, highlighting a focus on weekly payments.
• 📉 Despite a 14.9% price return decline in YMAX, the speaker is actually up on this position due to reinvested dividends.
• 📈 The speaker intends to build up positions in QDTE and RDTE, aiming for a $10,000 investment in each, and then use the weekly income to purchase more.
• 🌐 The speaker appreciates the Roundhill ETFs for capturing upside potential and paying out distributions, despite potential long-term NAV erosion.
• 💭 The long-term plan includes building a base for the portfolio with index-based ETFs for relatively stable yields.

Q & A

What is the current value of the portfolio discussed in the video?

The current value of the portfolio is $28,749.23.

How has the portfolio performed in the past week?

In the past week, the portfolio is up 1%, which is an increase of $546.4.

What is the long-term goal for the portfolio mentioned in the video?

The long-term goal is to use the income generated by the portfolio, which is over $1,000 per month, to fund new ETFs.

What is the strategy for reinvesting the dividends from the portfolio?

The strategy is to keep all the dividend income within the portfolio and reinvest those dividends rather than withdrawing them.

Which ETFs are part of the portfolio and are expected to pay dividends in October?

The ETFs expected to pay dividends in October are TESL, CONY, INVD, and MISTY.

How has the YMAX ETF performed in terms of price return?

The price return for YMAX is down 14.9%, but the total return, including dividends, shows a profit.

What is the significance of the weekly payments from YX in the portfolio strategy?

The weekly payments from YX provide a consistent income stream that can be used to purchase more shares of other ETFs, such as RDTE.

What is the plan for the RDTE position in the portfolio?

The plan is to build up the RDTE position to $10,000 using the weekly distributions received from other high-yielding ETFs.

How does the investor plan to use the distributions from the ETFs to grow the portfolio?

The investor plans to use the distributions to purchase more shares of ETFs, focusing on building up positions in QDTE and RDTE to $10,000 each.

What is the investor's view on the Russell 2000 Index and its potential in the portfolio?

The investor sees potential in the Russell 2000 Index for total return and plans to build up a position in it, expecting it to grow and provide a stable yield.

What is the investor's strategy for managing the income generated by the portfolio?

The investor's strategy is to reinvest the income into higher quality income ETFs for long-term growth, aiming to match or exceed the income with capital appreciation.

Outlines

00:00

📈 Portfolio Review and Strategy Update

The speaker begins by welcoming viewers back to their channel, focusing on entrepreneurship and investment. They discuss their new plan for a high-yielding ETF portfolio on Robin Hood, currently valued at $28,749.23. The portfolio has seen a weekly increase of 1% ($546.4), a monthly decrease of 17% ($494), and a 3-month increase of $85. The speaker's goal is to leverage the portfolio's income, which is over $1,000 per month, to fund new ETFs. They identify as a total return investor and an income investor, choosing to reinvest dividends within the portfolio. The speaker outlines their dividend income schedule, highlighting specific ETFs like TESL, COIN, and others that contribute to the portfolio's income. They also discuss their strategy to use the weekly income to purchase more shares in high-yielding ETFs, aiming to build up a substantial investment base.

05:01

🚀 Building a Diversified ETF Portfolio

The speaker continues by detailing their strategy to build up their positions in specific ETFs, including QDTE, RDTE, and XDTE, each to a value of $10,000. They plan to use the weekly income from their high-yielding ETFs to purchase more shares in these funds. The speaker reviews their current positions in various ETFs, discussing their performance and plans for reinvestment. They mention that they will be focusing on building up their RDTE position using distributions from other ETFs like YAAX, TESL, and others. The speaker also compares the performance of the Russell 2000 Index with the NASDAQ and expresses optimism about the potential for growth in the Russell 2000. They outline a personal plan to build up the Russell 2000 Index in their portfolio for long-term total return and stable yields.

10:02

🌱 Yield Farming and Portfolio Growth

In the final paragraph, the speaker discusses their strategy of yield farming from high-quality single-stock ETFs, such as COIN, MISTY, NIDY, and TESL, to fund the growth of their RDTE position. They express their preference for certain ETFs from the YieldMax lineup and their decision to reinvest dividends into RDTE for higher quality income in the long term. The speaker invites viewer feedback on their new strategy and concludes by encouraging viewers to like and subscribe if they found the content helpful. They also mention using a dividend tracker to monitor their income and express excitement about the consistent weekly payments rolling into their portfolio.

Keywords

💡ETF

An ETF, or Exchange-Traded Fund, is a type of investment fund and exchange-traded product that holds assets such as stocks, bonds, or commodities. In the video, the speaker discusses their high-yielding ETF portfolio, indicating that they are using these funds to generate income and grow their investment. The speaker also mentions specific ETFs like 'tesle', 'Coney', and 'invid', which are part of their investment strategy.

💡Robinhood

Robinhood is a financial services company that offers a commission-free trading platform for stocks, ETFs, and cryptocurrencies. The speaker mentions their portfolio in Robinhood, which is where they track and manage their investments, showing the current value and recent performance.

💡Dividend Payments

Dividend payments are the distributions of a portion of a company's earnings, paid out to shareholders. In the context of the video, the speaker discusses receiving dividends from their ETFs, which contribute to their portfolio's income. They mention how they plan to reinvest these dividends to purchase more ETFs.

💡Total Return Investor

A total return investor focuses on both the income generated by an investment and its capital appreciation. The speaker identifies as a total return investor, meaning they aim to maximize both the dividends they receive and the growth in the value of their portfolio.

💡Income Investor

An income investor prioritizes generating cash flow from investments, often through dividends or interest payments. The speaker also identifies as an income investor, indicating their strategy involves reinvesting dividends to grow their portfolio's income.

💡Yield Max

Yield Max is a term used by the speaker to refer to a specific type of ETF that focuses on generating high yields. The speaker mentions several Yield Max ETFs, such as 'yaax' and 'qdt', which are part of their strategy to generate income from their portfolio.

💡NAV Erosion

NAV, or Net Asset Value, erosion refers to a decrease in the value of an investment over time. The speaker discusses NAV erosion in the context of some single-stock ETFs, indicating that while there might be a decline in the share price, the dividends received can outweigh this decline, leading to a positive total return.

💡Reinvestment

Reinvestment is the process of plowing back earnings or dividends into additional investments to generate more income. The speaker talks about reinvesting dividends within their portfolio, specifically mentioning that they will use the income from 'yaax' to purchase more 'rdte'.

💡Russell 2000 Index

The Russell 2000 Index is a stock market index that tracks the performance of the smallest 2000 companies in the Russell 3000 Index. The speaker mentions this index in the context of their investment strategy, indicating an interest in smaller companies and their potential for growth.

💡Payout Calendar

A payout calendar is a tool used by investors to track the dates when dividends or other income payments are scheduled to be paid. The speaker refers to a payout calendar to illustrate how they manage and anticipate the income from their various ETFs.

💡Yield Farming

Yield farming is a strategy where investors seek out and invest in assets with high yields, often reinvesting the income to maximize returns. The speaker uses the term 'yield farm' to describe their approach to generating income from their ETFs, particularly from the Yield Max single-stock ETFs.

Highlights

Introduction to the new long-term plan for the high-yielding ETF portfolio

Current portfolio value at $28,749.23 with recent gains

Portfolio performance up 1% this week and 2% this month

Strategy to use dividend income to fund new ETFs

Total return investor approach balancing income and growth

Dividend reinvestment plan within the portfolio

Upcoming dividend payments from various ETFs

Price return and dividend income analysis for YAAX

Building up positions in QDTE and RDTE ETFs

First distribution from RDTE expected with a large payout

Long-term strategy to build up Russell 2000 Index

Comparison of past performance between Russell 2000 and NASDAQ

Plan to enable margin trading with lower interest rates

Focus on high-quality income where capital isn't decreasing

Experiment to increase account value by $1,000 a month

Using dividend tracker to monitor income and portfolio performance

Yield farming strategy from selected single-stock ETFs

Invitation for feedback on the new strategy

Closing remarks and call to action for likes and subscriptions

Transcripts

all right how's it going everyone

welcome back to the entrepreneur

investor and in today's video I'll be

discussing my new plan and my long-term

plan for my high yielding ETF portfolio

in Robin Hood so as you can see

currently we're sitting at $

28,749

23 and I'll be showing you exactly where

that came from with this week's dividend

payments so if you guys do like videos

like this be sure to leave a like And

subscribe to the channel on our way to

10,000 subscribers so today it is

Saturday but we are up1 n% up $546 4 and

that's because I do have some

cryptocurrency in this portfolio as well

in the past week we're up 2%

$591 in the past month still down 17%

down about

$494 not a big deal in the past 3 months

were up now

$85 and year-to date up

99.47% what my goal now is for this

portfolio since we've built up a huge

amount of income coming into this

portfolio with a relatively small

portfolio size I would say we're making

over $1,000 per month in this portfolio

and we're going to use that money that I

receive every single week from this

portfolio to fund new ETFs and in the

past year I'm up

12.04% so let's first go over over where

I received this buying power from and

where I'm going to put this money from

now on so I've been thinking about this

portfolio I am a total return investor

while also an income investor and I

think it's good to have the best of both

worlds my investing strategy might be

different from yours you might be

heavily income focused withdrawing the

income for your portfolio but in my

portfolios I'm keeping all the dividend

income within the portfolio and

reinvesting those dividends so as you

can see here I have tesle which is going

to be paying in the beginning of October

then the second week in October Coney

will be paying which is the coinbase

option income strategy by ymax then on

the third week invid will be paying a

distribution and then we get at the end

of October Misty paying the nice large

distribution now we're getting weekly

payments from YX so you can see price

return I'm down

14.9% with ymax it says here I'm down

$11,200 but I'll pull up my spreadsheet

now to show you that I'm actually up on

this position because the dividends that

I have received in my portfolio have

outweighed this share price decline so

if we go over the max time you can see

there is a slight nav erosion with yaax

over the past few months but it's not as

bad as some of the single stock ETFs and

that's why I like this position you can

see I have over

$7,200 in yaax and it is my largest

yield Max position and it's 25% of my

portfolio so I have

43.2 for shares and now that we're

getting paid weekly from yaax I received

$938,000

te I'm getting dividends from qdt every

single week you can see my price return

down 4.5% not a big deal I'll show you

my total return as well my average share

cost

$44.19 27.5 shares this is a large

position in my portfolio and I decided

to stop dividend reinvestment into this

ETF as of right now because I'm going to

be building up my rdte position so you

can see my dividend here

$503 I canceled that over order so it

does not reinvest and this

$144 23 on market open on Monday morning

I'm going to be purchasing some more

rdte this is the position I have

currently you can see my price return so

far haven't had the distribution yet

with rdte up

9.25% which is insane upside potential

is incredible and they're collecting

daily option income from this ETF and

going to pay that out every single week

so we go back onto the website scroll

all the way down and and see when their

distribution schedule is going to be

their first declaration is going to be

this week coming up 9:25 2024 should be

a pretty large distribution for their

first payout with this ETF and the pay

date will be 9:27 2024 which should be

on Friday so distribution history

nothing here yet like I said I think

it's going to be great long term what

I'm going to build this position up into

I think my strategy going forward since

I love the Yi Max ETFs don't get me

wrong I have most of my portfolio in the

yield Max ETFs I'm going to try to build

up my qdt rdte and then eventually add

in xdt to this portfolio to $10,000 each

per fund and then with that Weekly

income coming into the portfolio I'll be

able to purchase more yield Max ETFs

with that money as well so if we go back

into my qdt position you can see I have

$108 in this ETF so I'm good for qdt so

I already have my first one built now

I'm going to focus on that rdte I have a

very small position rdte

$273 with this 144 that I have here

going to put that bring me up to about

$500 in rdt and then we're going to

continue to compound that ETF until I

hit 10,000 so I showed you guys my price

return here with yaax down

14.9% let's go into my spreadsheet here

just input the distribution income that

I received so far from September with

yaax and then if we go into my positions

scroll over you can see ymax I'm up 1%

and then if we look at QD to so far I'm

up 4.7% so outperforming yaax in about

the same time frame so I'm going to be

building up my rdte position with my

weekly yaax distributions as well going

to take all the money I receive from

tesley over $300 per month from tesley

putting that into rdt e same with Cony

and nidy and Misty all those

distributions are getting funneled right

into rdte because I think long term this

is going to be a better investment than

reinvesting the dividends back into the

single stock ETFs by yield Max let's

also take a look at the Russell 2000

Index you can see it was down 1.10%

today in the past 5 days it's up 1.8% in

the past month it's up 2.64% and let's

go in the past year up 25% what I really

like about the roundhill ETFs is that

they're able to capture this upside with

these new ETFs that they came out with

as well as payout distributions we may

see slight nav erosion longterm with

these ETFs but with the total return

it's very close to matching the

underlying index like if you look at

qd's Total return it's about 9 to 10%

since Inception date that's fantastic if

you look at y Max's since Inception date

the about the same but we're getting

higher quality companies within qdt

we're getting that nice weekly pay my

personal plan is to build up the Russell

2000 Index if we take a look at past 5

years you know the Russell 2000 hasn't

done that well it's going back up again

now but if we compare that to the NASDAQ

right now in the past 5 years you know

this one's up 152% so the Russell 2000

definitely has some time to grow and I

think it'll be a great Total return in

my portfolio if I build this one up to

$10,000 in here and then after I build

this one up to $10,000 I use the

distributions that I'm getting every

single week from QD to e and rdte funnel

that into X DTE and just create a nice

base for the portfolio index-based ETFs

relatively stable yields nothing too

crazy like ulti where there's so much

nav erosion that you're losing all your

Capital you're getting great income but

we'll see what happens long term with

ulti but I feel more comfortable putting

10K into the roundhill ETFs individually

and then having fun with the income that

I receive every single week cuz I could

easily be making $300 per week off of a

$330,000 investment into these ETFs not

sure if I'm going to enable margin now

with these lower interest rates that

we're seeing on Robin Hood so I could

always do that boost up the portfolio

fairly quickly but I've seen great

success with using my distributions that

I'm receiving from these high yielding

ETFs to purchase other ETFs more shares

and really focus in on the best ETFs

longterm for my portfolio and then

eventually live off of this portfolio

with the income as I showed you guys in

my previous videos I'm pretty much able

to do that with my M1 Finance portfolio

you know making income is great but you

also want high quality income where your

Capital isn't decreasing over time

because as you can see in the past year

my Capital has gone up $33,000 by

investing in these ETFs but since it's

making $11,000 per month that doesn't

mean I'm up $122,000 per year so that's

what I'm trying to do is if I'm making

$11,000 per month I want my account

value to go up by $1,000 a month so I

think that can happen with having 10K in

the roundhill ETFs going to do this

experiment it's going to take me a

little while but I'll take you guys

along for the ride if we go into my

payout calendar here on the dividend

tracker.com you guys can sign up with

the link in the description down below

you can see my income has gone down and

that's because yaax in here only paid

$938,000

yaax in to now every single week so I'm

going to be getting nice payments

rolling into the portfolio every single

week with all of these high quality ETFs

in here and I picked personally my

favorite ETFs so far from the yield Max

single stocks so you can see like Coney

Misty nidy tesley those are pretty solid

longterm in my opinion I'm just going to

yield farm from those ETFs take all that

money put it all into rdte for now so

let me know what you guys think of this

new strategy you think I should reinvest

the dividends back into the single stack

ETFs or use my new strategy that I

thought of today where I'm going to

build up these income ETFs for higher

quality income longterm so thank you

guys so much for watching if you did

enjoy leave a like And subscribe and

I'll see you guys in the next one