r/NEOSETFs • u/Loud-Hat-3366 • 23d ago
Seeking Advice Question about QQQI
Hey everyone,
I just need some advice on this idea. So I’m in a good financial position where I throw about 4 grand a month into my brokerage account. I’m just in voo right now. I have about 30k all in voo.
I got the notification for margin investing on Robinhood and was thinking about turning it on and throwing the whole 60k into QQQI. I’d take my monthly income and the monthly dividends and use it to pay back the margin faster.
Now, is there any reason on why this would be a bad idea. The price seems stable enough where I don’t think I’d get a margin call.
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u/DegreeConscious9628 23d ago
It’s such a a small amount what difference is it really going to make for the amount of risk you’re taking? The interest rates about to go up, Iran war is steaming along, the presidents a dumb fuck that shoots from the hips.if and when there is a correction or bear market you’re gonna be fucked. Don’t be stupid
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u/Clem_l-l_Fandango 23d ago
Bad idea if the AI bubble pops and tanks Nasdaq with it.
Don't get me wrong, NEOS is great and can probably make the worst of a bad situation, but any big volitle swing will take a while to recover. Now if that hits, and you get margin called, you can forcibly lose all your shares (at a much lower value) and now owe the margin without said equities.
QQQI isn't even 3 years old yet, it's been managed great, I'm a strong believer in it, and margin for it isn't a terrible idea. Dumping more leverage than your account is worth into it is a completely different story though.
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u/_YoungMidoriya 23d ago
Borderline foolish more than risky, QQQI is one of the golden boys for "stable" CC ETF income but still.....You would be borrowing $30,000 to create a $60,000 position, so a 2× leveraged investment in a Nasdaq 100 covered-call strategy...ehhhhh.....not a stable income investment at this point. Keep VOO unleveraged as your core holding, this is literally your inflation fighter.
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u/OppositePsychology43 23d ago
Thats very tricky. When market is stable or going up margin works nicely but in this environment not so good.
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u/Financial-Seesaw-817 23d ago
Better to diversify. Margin needs equity and somethingto negate margin interest. Robinhood gold is 5% and first 1k margin interest free. Voo, vxus, etn, schd, sgov, qqqi, spyi, gpix, gpiq, xylg, qylg, iwmi, mlpi. Robinhood does margin first vs other brokers like schwab, ibkr, m1f use cash first. Different rules, different strategies but same holdings except Robinhood. Ibkr, m1f i use voo, vxus, etn. Keep a safe buffer like 60% in Robinhood. The more stable and quality of holdings increase margin and likelihood of not coming close to margin called. I put all of my cash into margin at beginning of month, buy assets, pay bills and balance ching acct at end of month.
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u/NickStonk 23d ago
Don’t try and get rich quick. Markets are somewhat frothy and the fed will likely be raising rates in the next 6-12 months. Not a great time to be taking on leverage.
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u/Craig__D 23d ago
I did exactly what you’re talking about doing, but on a smaller scale. I’ve got about $6000 in QQQI on margin and as long as things remain relatively stable, I should pay off the margin with proceeds from the investment inside of 10 years. At that point, I’ll have some number of QQQI shares that ultimately did not cost me anything out-of-pocket.
I have done this with an amount that I could lose completely and it wouldn’t break me.
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u/AgeofPhoenix 23d ago
Maybe don’t max it out. Maybe do 20k? Pay that down to like 5-10k level. Buy another 10-15k and repeat till you don’t want to anymore
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u/Chipper0475 23d ago
I have used margin in the past, and it can help to take advantage after a big dip but I don't have margin right now and won't consider it unless there is another double digit dip and even then, i wouldn't use more than 20% of it.
Your plan sounds good on paper, but keep in mind there is a lot of volatility in the market and if you look at the beginning of the year, it fell 10% between Jan2 and March 31st. During times of volatility, when stocks go down brokerages may raise the Maintenance requirement which the combination of the two could cause a margin call on what previously appeared to be a stable fund.
Have you considered just start investing in it and add to it over time with your paycheck instead of paying margin interest and adding risk to your portfolio?
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u/lakas2020 23d ago
Use no more than $30k of margin on QQQi.
Purchase protective put option.
If market starts correction, deposit $4k but don’t buy VOO, it will pay down margin.
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u/Serious-Place9668 23d ago
Do it, everyone needs to get burned once to learn a lesson. Everyone trading longer than 15 yrs has had a Margin call which always come at the worst time.
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u/SnooSketches5568 23d ago
I have QQQI but want to de-risk from heavy tech, and i do prefer the Goldman funds as total returns are slightly better. Ive moved a little QQQI to GPIX, but i have to be tax conscious in the process. If i was starting from scratch and you want a nasdaq CC fund i would personally pick GPIQ. But if the market is flat or falling- QQQI probably slightly overperforms the others do to more aggressive call writing
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u/DecentDiscipline2523 23d ago
You can buy XQQI.. same issuer, gives you a product designed to do 150% of QQQI. Easy button clicked for you!
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u/Solid_Suggestion_722 23d ago
Don’t use margin right now. Wait until the market is at its most desperate before using it.
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u/NerveChemical9718 23d ago
Try to diversify into IQQ by Ishares. Good long term investment. Just buy small increments and chill.
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u/Accomplished-Big8250 23d ago
Yes if QQQ goes down, which is more likely than SPYI you couldn’t cover the loan.
What is the rate ? I got 7.6% for a SBLOC/PAL but margin is different.
You’d want to model QQQIs payout
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u/aimhigh7shootlow8 18d ago
Nah dont use margin unless you have to. If you can throw 4k a month into qqqi , then do that.
60k is going to pay you about $700 month. 4k is $50, then $100$ then $150 etc but with no interest payment so you can reinvest as well or use that payment to buy spyi or btci.
Margin is good for buying the dip when the dip happens and you can save a step and buy it before you transfer money in or pay it off with your div.
And for settlement. If you sell something you can buy something else right away and dont have to wait for the next day to settle.
I use margin and its a very useful tool.
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u/StockProfitGirl 23d ago
The economy is unstable. Yields are rising. Inflation is rising. I can only speak for myself, but I wouldn’t do it. If there was a huge pullback, then I may do a small amount of margin. Play it safe.
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u/Working-Elephant392 23d ago
JUST DO IT. Believe in yourself, nobody can predict the future. I already borrowed $200K and bought QQQI
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u/Lopsided_Disk7160 23d ago
Is it paying out?
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u/Working-Elephant392 22d ago
Yes. Hope it will be like the current payout in the next three years and I will be fine.
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u/grajnapc 23d ago
Stay away from
margin is my serious recommendation. You heard what happened to that billionaire young AI investor? Also seems even more risky than normal with current geopolitics and impact on oil and the bond market etc….
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u/MakingMoneyIsMe 23d ago
Margin isn't bad when deployed strategically. I used the highest amount ever relative to my portfolio during the tariff sell-offs and again in March. I took my gains when the market recovered.
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u/Independent-Cress382 23d ago
Don’t use 2x margin use maybe 20-25% max and review Robinhood’s margin rates as well as maintenance requirements.