PM Images/DigitalVision via Getty Images There's a fund that doesn't use "only" the classic buy-write fund strategies to generate today a distribution rate above 25% TTM (per SA): we're talking about NestYield Dynamic Income ETF ( EGGY ). And it does so with a strategy that today seems to actually surpass the total return of classic buy-write funds on the Nasdaq-100. Note the fact that this strate...
PM Images/DigitalVision via Getty Images There's a fund that doesn't use "only" the classic buy-write fund strategies to generate today a distribution rate above 25% TTM (per SA): we're talking about NestYield Dynamic Income ETF ( EGGY ). And it does so with a strategy that today seems to actually surpass the total return of classic buy-write funds on the Nasdaq-100. Note the fact that this strategy carries more risk than the Nasdaq-100 and the covered call ETFs themselves. Here too, what gets distributed is not all gain; but personally, I try to mitigate these issues with a particular tactic. But before talking about it… What is EGGY? An actively managed ETF launched on December 26, 2024, with a track record of about 17 months, relatively short to evaluate the performance of active management. Especially in front of a nominal management fee of 0.95%, certainly not negligible. But before looking at the cost, we should get used to looking at what this fund actually offers . EGGY - fund profile (Seeking Alpha) Let's start from the assumption that EGGY doesn't follow a benchmark : it's an actively managed ETF with a primary objective of high income; then it has a (only) secondary objective of exposure to price appreciation of US equity securities; it does so through the setup of an equity portfolio with synthetic replication and a 172% turnover. On top of that, it prints a covered call strategy that deserves to be analyzed. This is because EGGY's distribution is equal to 32%, even in the absence of SEC yield; decidedly high; all the more so if we consider that the declared monthly distribution target is 1.5-3% of NAV. What Do We Find Inside? First of all, an equity selection based on active research on US large caps was listed to identify 25 candidates. On these, a subsequent qualitative analysis is carried out that extracts a maximum of 10 to 25 securities; then it applies a weighting mechanism that emphasizes earnings growth as the primary factor. This is today's res...
Server maker Super Micro Computer (NASDAQ: SMCI) shared the kind of update on Tuesday evening that growth investors usually celebrate. The company said it has received approximately $39 billion in orders for its advanced artificial intelligence (AI) servers from more than 20 customers in recent weeks. That's more than its total revenue over the past four quarters combined. But the news came with a...
Server maker Super Micro Computer (NASDAQ: SMCI) shared the kind of update on Tuesday evening that growth investors usually celebrate. The company said it has received approximately $39 billion in orders for its advanced artificial intelligence (AI) servers from more than 20 customers in recent weeks. That's more than its total revenue over the past four quarters combined. But the news came with a catch. To buy the components needed to build those servers, Super Micro plans to raise $7 billion by selling a combination of common stock and convertible preferred shares. Investors focused on the bill rather than the orders, sending shares down about 28% on Wednesday. In total, shares are now down about 37% over the last five trading days alone. It's quite the reversal. The stock jumped 68% in May, and it has now given back a big piece of that gain in a single trading session. And the size of the financing helps explain the reaction: $7 billion equals more than a third of the company's entire market value of about $20 billion as of this writing. Continue reading
The SpaceX IPO is nearly upon us. And investors around the world are grappling with the company's lofty $1.77 trillion valuation target. Critical to that valuation target is the company's fledgling artificial intelligence division . SpaceX estimates that its AI division alone is chasing a total addressable market of $26.5 trillion. If true, that would potentially more than justify a $1.77 trillion...
The SpaceX IPO is nearly upon us. And investors around the world are grappling with the company's lofty $1.77 trillion valuation target. Critical to that valuation target is the company's fledgling artificial intelligence division . SpaceX estimates that its AI division alone is chasing a total addressable market of $26.5 trillion. If true, that would potentially more than justify a $1.77 trillion market cap. Still, there are many unknowns. No one can say for sure whether SpaceX's AI bets will pay off. The capital costs will be truly enormous. Evercore ISI -- an advisory investment bank -- predicts SpaceX's capital expenditures will reach $360 billion by 2030, nearly doubling in value to $732 billion by 2031. The vast majority of that spending will be dedicated exclusively to AI investments . To put that into perspective, SpaceX's total capital spending last year was just $20 billion -- a figure that includes spending across all of its business segments. While SpaceX's future may still be uncertain, there's one thing we know nearly for certain: The company will go on a massive spending spree following its IPO. And there are two stocks in particular poised to benefit. Continue reading
In trading on Thursday, shares of Summit Hotel Properties Inc's 5.875% Series F Cumulative Preferred Stock (Symbol: INN.PRF) were yielding above the 9% mark based on its quarterly dividend (annualized to $1.4688), with shares changing hands as low as $16.25 on the day. This c
In trading on Thursday, shares of Summit Hotel Properties Inc's 5.875% Series F Cumulative Preferred Stock (Symbol: INN.PRF) were yielding above the 9% mark based on its quarterly dividend (annualized to $1.4688), with shares changing hands as low as $16.25 on the day. This c
Funtap U.S. Treasury yields moved sharply lower Thursday afternoon after President Trump indicated that planned military strikes on Iran had been halted, easing concerns about a potential escalation in Middle East tensions and boosting sentiment across financial markets. The development sparked a broad rally on Wall Street, while investors also increased purchases of U.S. government debt. Stronger...
Funtap U.S. Treasury yields moved sharply lower Thursday afternoon after President Trump indicated that planned military strikes on Iran had been halted, easing concerns about a potential escalation in Middle East tensions and boosting sentiment across financial markets. The development sparked a broad rally on Wall Street, while investors also increased purchases of U.S. government debt. Stronger demand for Treasuries pushed bond prices higher and yields lower across the curve. The benchmark U.S. 10 Year Treasury yield ( US10Y ) declined 9 basis points to 4.46%, reflecting a significant shift in investor expectations following the geopolitical update. The move was accompanied by gains in equities as traders welcomed signs of a possible diplomatic breakthrough involving Iran. Shorter-term yields also retreated. The rate-sensitive U.S. 2 Year Treasury yield ( US2Y ) fell 8 basis points to 4.06%, At the same time, the longer-end U.S. 30 Year Treasury yield ( US30Y ) dropped 8 basis points to 4.95%. Market participants have closely monitored developments in the Middle East in recent weeks, with geopolitical uncertainty contributing to volatility across asset classes. Thursday’s bond rally suggested investors viewed the latest headlines as reducing near-term risks, helping support both stocks and fixed-income markets. Fixed Income ETFs: ( TLT ), ( TLH ), ( IEF ), ( IEI ), ( SHY ), ( SGOV ), ( SCHO ), ( BIL ), ( AGG ), ( BND ), ( VCIT ), ( MUB ), ( MBB ), ( JNK ), ( LQD ), ( HYG ), ( VTIP ), ( TIP ), ( SCHP ), ( STIP ), ( TIPX ), ( SPIP ), ( WIP ), ( GTIP ), ( LQDI ), and ( RINF ). More on markets Trump halts Iran strikes and signals major Middle East agreement nearing completion Top 10 most oversold S&P 500 stocks ETFs are ready for liftoff as SpaceX IPO fuels interest in space stocks Over 40% of S&P 500 stocks trade below their 200-day MA amid selloff 15 dividend stocks to watch as downward momentum grips Wall Street
Sadler’s Wells, London The company’s centenary celebration isn’t about nostalgia – this occasionally thrilling triple bill of recent creations showcases some excellent dancers Britain’s oldest dance company is celebrating its 100th anniversary but this celebratory tour is decidedly no exercise in nostalgia. As the title, This is Rambert, makes clear, it’s a mission statement, a manifesto, and all ...
Sadler’s Wells, London The company’s centenary celebration isn’t about nostalgia – this occasionally thrilling triple bill of recent creations showcases some excellent dancers Britain’s oldest dance company is celebrating its 100th anniversary but this celebratory tour is decidedly no exercise in nostalgia. As the title, This is Rambert, makes clear, it’s a mission statement, a manifesto, and all about the present moment. So no harking back to the company’s beginnings in the early years of British ballet, or the deliberate shift into modern dance in the 1960s. The Rambert brand has gone through some chameleonic changes across the last century, settling for a while into a pattern of reputable, reliable, something-for-everyone shows. Current artistic director Benoit Swan Pouffer wants to shake things up, to prove there’s nothing geriatric about this centenarian. Continue reading...