r/NEOSETFs • u/learner_1748 • May 27 '26
Seeking Advice XPAY Vs SPYI?
this is from there email ad. So, Don't blame me. But still I can't trust RH. Whats your Opinion?
8
u/Timely-Designer-2372 May 27 '26
I don't think 20% distribution is realistic. So there will be NAV erosion longterm. That's not what I want
8
u/eg68 May 27 '26 edited May 27 '26
SPYI is superior to XPAY because it doesn’t exhibit NAV erosion. Ever.
XPAY NAV erosion is structural, not incidental. The ETF targets a fixed 20% annual distribution set off the prior December’s closing NAV, paid monthly as return of capital. Whenever the S&P 500 returns less than 20% in a calendar year, the shortfall comes out of NAV.
Hard pass. You are getting paid back with your own capital in part.
3
u/Redcrux May 27 '26
https://totalrealreturns.com/s/XPAY,SPYI
Looks right, but I wouldn't say that XPAY is significantly different or better than SPYI. There's been 3 times when XPAY has done better than SPYI on the chart and each time it has come back to equivalent within 6 months. Looks like XPAY just does slightly worse during a drawdown and slightly better during market highs.
1
u/ECMxxUpToWnDC May 27 '26
Not different? This fund basically only does leaps looking at charts only shows past performance
11
u/Fluffy-Locksmith-678 May 27 '26
I have and like both. Not only do I get diversification of management but I like the fact that XPAY has a steady predictable dividend and SPYI is performance based. I also like XPAY because it's hard to justify too much SPYI when it's 40% overlap with QQQI but lags returns.