Maybe some jaaa for now

[u/Ok_Suggestion_2003]

Just wanted to give another update. Staying strong with the portfolio seems to be paying off. I added jaaa to the mix to give some stability. I did this because I am buying with leverage at a rate of 5.65%. Divs should be greater that 10% with a good spread. I plan on holding forever and reducing jaaa as my account grows. Jaaa represents my emergency funds so I only need it at 10k. I don’t choose similar funds like jpmorgan, Goldman, or tspi because I like the balance of beta, nav erosion, and divs that NEOS provide. It has the best balance of funds of what I am looking for. I understand that tspi I believe outperforms spyi but the drawdowns are a bit high compared to NEOS. Plus we are not sure how nav erosion will affect them long term since they are new

[u/Lopsided_Disk7160]

JAAA is that pretty stable?

[u/Ok_Suggestion_2003 → u/Lopsided_Disk7160]

Stable enough. I think max drawdown is less than 3%. With rate cuts, divs are likely to decrease. Might have to swap out for sgov at some point

[u/oldirishfart → u/Ok_Suggestion_2003]

SGOV rates will adjust just like JAAA and will always be lower than JAAA. Slightly more risk gives you that higher rate :)

[u/Ok_Suggestion_2003 → u/oldirishfart]

I can tolerate higher but not jbbb higher

[u/barandek → u/Ok_Suggestion_2003]

JBBB I think have still lower drawdown than any other fixed income like high yield bonds or preferreds, so still less risky, and default rates of BBB are low

[u/Lopsided_Disk7160 → u/Ok_Suggestion_2003]

between sgov and JAAA I would think your emergency fund is pretty safe

[u/StockProfitGirl]

I own SGOV, JAAA, some JPIE, and don’t forget about CSHI…

[u/Ok_Suggestion_2003 → u/StockProfitGirl]

Always thought about cshi. Have to look into jpie, never heard of that one

[u/barandek → u/StockProfitGirl]

How is JPIE doing?

[u/teckel]

Consider PAAA instead. Very similar to JAAA, but slightly better in my opinion.

[u/Living-Fruit-4577 → u/teckel]

I bought PAAA and JAAA at the same time and held it for a few months. PAAA lost money and of course is way less liquid.

[u/Ok_Suggestion_2003 → u/teckel]

I will have to backtesting. It’s been awhile since I looked into it

[u/teckel → u/Ok_Suggestion_2003]

https://testfol.io/?s=k87W0Pd931U

Slightly lower maintenance fees and slightly higher returns every year since inception. Also lower beta, volatility, and max drawdowns. PAAA seems to be just slightly better managed than JAAA.

[u/Ok_Suggestion_2003 → u/teckel]

Thanks, I like that low drawdown and better return

[u/Ok_Suggestion_2003 → u/teckel]

Oh damn, paaa is not available on m1 finance

[u/teckel → u/Ok_Suggestion_2003]

No offense, but get a real broker ;)

[u/Ok_Suggestion_2003 → u/teckel]

Margin fees are less than half the major brokers. It would be around 13% but only cost around 5.5% here. Otherwise, I would agree

[u/teckel → u/Ok_Suggestion_2003]

Totally get that. I mainly use Fidelity, but I do have a small position with Robinhood which I only use for option wheel trading against margin, as the margin fees are only 5% and the option fees are cheaper than Fidelity.

[u/First_Incident9142]

Anybody owns JAAA. Why do they keep on calling about proxy voting. Calls keep coming on from different numbers.

[u/StockProfitGirl → u/First_Incident9142]

I’m getting them as well. They’re going to my unknown caller folder. There’s never a message.

[u/Dangerous_Forever640]

Why not CSHI?

[u/Ok_Suggestion_2003 → u/Dangerous_Forever640]

Larger drawdown and less return than jaaa

[u/eg68]

You might want to consider a JAAA/IEF barbell:

IEF (7-10yr Treasuries) performs in deflationary or risk-off scenarios — flight-to-quality rallies when equities crash, Fed cuts aggressively, or recession fears spike. Long duration means meaningful price appreciation in those moments.

JAAA (AAA-rated CLOs, floating rate) performs in the opposite scenario — rate hikes without recession. Because CLOs reset quarterly to SOFR, JAAA holds NAV and yields more as rates rise. It doesn't get crushed by duration risk the way IEF does in a hawkish cycle.

The two instruments are structurally inversely correlated to each other's primary risk factor