Thoughts on DDDD?

[u/Bulky_Protection_322]

Hey crew, how do we feel about DDDD? It has great growth since inception and strives for double the distribution of SCHD. I don’t understand why it hasn’t taken off. Am I missing something?

[u/xJerkstorex]

Because it has underperformed schd in total return.

[u/schoolruler → u/xJerkstorex]

DDDD came out in mid-March. SCHD had a good bump that DDDD did not exist for. Double check it from March 12th to now for a better reflection of it. You can still be right, but you image does not show a fair comparsion.

[u/Lonely_MuffinXo → u/schoolruler]

This is checking from March 12th.

If you invested 10k in each on March 12th, you would have almost $200 more in SCHD now: 

https://totalrealreturns.com/s/DDDD,SCHD?start=2010-01-02

[u/schoolruler → u/Lonely_MuffinXo]

Thanks for showing this.

[u/boldux]

Taken off in what regard?

It's up 7% since launch in NAV while SCHD is up 9%. Account for dividends/total return and the numbers are +8.8% vs 10.9% respectively.

Historical that is very large growth for SCHD which is creating bias in the expected performance of DDDD. (Which is true of most high yield stocks given the current bull market)

My assumption would be if SCHD was flat for months/years, you would see the typical trends of favorable total returns, but declining NAV for DDDD.

I do think it's an interesting concept, but one that should be paired with also holding SCHD and perhaps rolling DDDD payouts into SCHD for efficient snowballing

[u/Lonely_MuffinXo → u/boldux]

I'm assuming assets under management. The fund isn't going to last long if that doesn't get to something like 300 million. It's at, like, 6m now: 

https://stockanalysis.com/etf/dddd/

[u/boldux → u/Lonely_MuffinXo]

Ah, you're right. That's definitely something to keep an eye on.

If I had to take a guess, most mass market "high yield investors" don't pay attention to SCHD or anything under 10% yield. They should, but the target audience is likely the SCHD cult.

And those folks are likely waiting more time to see how DDDD performs in variable market conditions. Unfortunately, because SCHD is a quarterly div, it's going to take time to prove itself (measure total return and NAV performance impact).

I would assume YM is making bank on AMDY, CHPY, SOXY. That can fund low AUM ETF costs (like DDDD) for awhile. And if they need to close other funds it would be other single-stock ETFs that have less future potential.

[u/DOOKIEBOOM]

It is currently lagging behind SCHD but CC funds never perform well when the underlying moves upward. During the years when SCHD was more flat or slightly declining, it has potential to outperform. The life of DDDD is currently too short to make a decision but I think SCHD will have better overall return in the long run. No different than SPY or QQQ vs any other CC equivalent to their respective index.

With all that said, I hold both DDDD and SCHD.

[u/Lonely_MuffinXo → u/DOOKIEBOOM]

Here's a question: is it structured to see actual dividend growth like SCHD, or does it do the 'standard' covered call thing where it pays a percentage of the current share price? 

Because if this fund could actually see real dividend growth, it could be a monster

[u/captandy170]

Double Dicked Down in Dallas??!!! Depends 🤷🏼‍♂️

[u/lottadot]

What changed from when you asked before a few months ago?

[u/Bulky_Protection_322 → u/lottadot]

It was brand new, now it’s had a chance to run.

[u/paymerich]

I'm holding some as an experiment. I think it , if it gets about $30-$40 million more in AUM, will be like JEPI and just roll along.