ETFs that kick off dividends like PSLDX?

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MattB
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ETFs that kick off dividends like PSLDX?

Post by MattB »

Hi BHs,

Are there any ETFs that kick off dividends about as frequently and as large as PSLDX** has recently? I'd love to hold PSLDX at M1 but can't because it isn't offered in an ETF share class. And I'm wondering if there are alternatives or close-to-alternatives that I could use instead.

Thank you.

**PSLDX: PIMPCO StocksPLUS long duration fund. Distribution yield: ~26%. https://www.pimco.com/en-us/investments ... -fund/inst
jarjarM
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Re: ETFs that kick off dividends like PSLDX?

Post by jarjarM »

QYLD comes to mind, dividend yield ~11%. But it's not always recommended since it's lagging just buying QQQ in total returns. Not sure why you would want a high dividend ETF to hold in M1?
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UpsetRaptor
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Re: ETFs that kick off dividends like PSLDX?

Post by UpsetRaptor »

Something that throws off that many distributions is extremely tax-inefficient outside of a tax-advantaged account like an IRA.
swilgu1
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Re: ETFs that kick off dividends like PSLDX?

Post by swilgu1 »

PSLDX throws off those dividends due to the fund's structure. As far as I'm aware, the dividend includes interest from the bonds portion of the fund (somewhat equivalent to a long term bond market holding) and the accumulated gains from the derivatives and swaps on the S&P 500, which are leveraged. There is another forum thread detailing this fund's structure more in depth.

viewtopic.php?t=305950

I'm not aware of an ETF with this structure. Also, dividends are not a free lunch. If you look at PSLDX dividend days, the share price drops 8 to 9 percent on those days, which are quarterly.
Equal-weighted asset allocation of to ETFs targeting US Large Cap Blend, US Momentum, US Small Cap Value, exUS Small Cap Value, and Emerging Markets.
sonosoldi3112
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Re: ETFs that kick off dividends like PSLDX?

Post by sonosoldi3112 »

I like EOS, ETV & QQQX. ..all are closed end funds but with good history to back test ... throw off great dividends. distributions .... much of which is constructive return of capital ( no tax due until you go negative cost basis or sell ) ... these funds have beaten traditional etfs. much of the time and have billions invested in them so not some crazy speculation .... they out perform QYLD bigly.
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MattB
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Re: ETFs that kick off dividends like PSLDX?

Post by MattB »

jarjarM wrote: Mon Oct 11, 2021 1:15 pm Not sure why you would want a high dividend ETF to hold in M1?
I'd like to hold PSLDX in my Roth there both because I agree with the idea underlying the fund and because I want to generate what amounts to hands free recurrent revenue for a project there. I can spell out the details if you're curious but would probably get flamed here.
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MattB
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Re: ETFs that kick off dividends like PSLDX?

Post by MattB »

UpsetRaptor wrote: Mon Oct 11, 2021 1:34 pm Something that throws off that many distributions is extremely tax-inefficient outside of a tax-advantaged account like an IRA.
Thanks. That's why I'd only hold it in my IRAs.
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MattB
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Re: ETFs that kick off dividends like PSLDX?

Post by MattB »

swilgu1 wrote: Mon Oct 11, 2021 4:09 pm I'm not aware of an ETF with this structure.
Thanks for thinking about it. I'm obviously not aware of any either.
swilgu1 wrote: Mon Oct 11, 2021 4:09 pm Also, dividends are not a free lunch. If you look at PSLDX dividend days, the share price drops 8 to 9 percent on those days, which are quarterly.
Understood. My goal was/is to drive hands free recurrent revenue to feed something else in my Roth. But I don't believe this is going to happen.
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MattB
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Re: ETFs that kick off dividends like PSLDX?

Post by MattB »

sonosoldi3112 wrote: Mon Oct 11, 2021 4:23 pm I like EOS, ETV & QQQX. ..all are closed end funds but with good history to back test ... throw off great dividends. distributions .... much of which is constructive return of capital ( no tax due until you go negative cost basis or sell ) ... these funds have beaten traditional etfs. much of the time and have billions invested in them so not some crazy speculation .... they out perform QYLD bigly.
Thank you for the recommendation. I've not heard of these. Time to do some reading.
ChinchillaWhiplash
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Re: ETFs that kick off dividends like PSLDX?

Post by ChinchillaWhiplash »

MattB wrote: Tue Oct 12, 2021 2:10 am
sonosoldi3112 wrote: Mon Oct 11, 2021 4:23 pm I like EOS, ETV & QQQX. ..all are closed end funds but with good history to back test ... throw off great dividends. distributions .... much of which is constructive return of capital ( no tax due until you go negative cost basis or sell ) ... these funds have beaten traditional etfs. much of the time and have billions invested in them so not some crazy speculation .... they out perform QYLD bigly.
Thank you for the recommendation. I've not heard of these. Time to do some reading.
Just do a google search on CEFs that pay high dividends. They will usually have high expense ratios as a lot of them use leverage on their holdings to boost dividends. I would keep the leverage ratio below 30% and look for funds trading below NAV. Also keep ER below 1.5 if you can. Use CEFconnect and Morning* to research the funds.
olyveoil
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Re: ETFs that kick off dividends like PSLDX?

Post by olyveoil »

MattB wrote: Mon Oct 11, 2021 1:07 pm Hi BHs,

Are there any ETFs that kick off dividends about as frequently and as large as PSLDX** has recently? I'd love to hold PSLDX at M1 but can't because it isn't offered in an ETF share class. And I'm wondering if there are alternatives or close-to-alternatives that I could use instead.

Thank you.

**PSLDX: PIMPCO StocksPLUS long duration fund. Distribution yield: ~26%. https://www.pimco.com/en-us/investments ... -fund/inst
CEF's
PDI
PDT
HYT
PCI
SPE
IGA
ASG
PTY
FEI
HQH
PCN
DNP
UTG
UTF
HTD
TEAF
DIAX
NFJ
BDJ
RNP
--Make sure to understand leverage, discount/premium to NAV and net expense ratios. CEF specific sites and morningstar are good references

ETFs
-Not all are like PSLDX
RYLD
QYLD
XYLD
JEPI
NUSI
MLPA
CEFS
YYY
HIPS
PFFA
ETV
SDIV
IGR
KBWD
HIPS
SRET
HDEF
HYLB
PFFD
DIVO
PGX
PGF
cogito
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Re: ETFs that kick off dividends like PSLDX?

Post by cogito »

PSLDX is popular here for it's leveraged allocation to equities and long-duration bonds, not because it spits out large quarterly distributions. You should first decide what your allocation goals are, and only after that, look for vehicles that may also automate the distributions so you don't have to sell shares manually. Many of the tickers being thrown around here have wildly different holdings, objectives, structures, and will yield wildly different results than PSLDX would.
Topic Author
MattB
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Re: ETFs that kick off dividends like PSLDX?

Post by MattB »

cogito wrote: Tue Oct 12, 2021 10:59 am PSLDX is popular here for it's leveraged allocation to equities and long-duration bonds, not because it spits out large quarterly distributions. You should first decide what your allocation goals are, and only after that, look for vehicles that may also automate the distributions so you don't have to sell shares manually. Many of the tickers being thrown around here have wildly different holdings, objectives, structures, and will yield wildly different results than PSLDX would.
Thanks. I'm well-aware of PSLDX's structure and function, etc.

Thanks also for your concern. But this is not a personal investments question so you need not provide personal investment advice.
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firebirdparts
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Re: ETFs that kick off dividends like PSLDX?

Post by firebirdparts »

You should recreate PSLDX using leveraged ETFs and then just sell some of it every month. Super easy.

I presume that what you're really interested in is the performance. Could be bad assumption.

I'm not aware of any other option, and I truly mean that, but of course it's a big world out there.
A fool and your money are soon partners
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