5 Income Funds That Save You Time (8.6% Yield)

A review of 5 high yield income funds that cover these sectors: BDCs, REITs, Preferred Stocks, CEFs, and Midstream MLPs. Learn the basics of these sectors, and the funds that offer an easy entry point. I also explain which of the 5 I chose to purchase. If you like dividend investing, I hope you enjoy this discussion of the following high yield investments: PBDC, RQI, PFFA, MLPA, and CEFS.
✏️ LINKS FROM TODAY'S EPISODE:
➡️ My Favorite Dividend Tracker, Snowball: (Create a Free Account, and the 10% Discount will appear under "Subscribe"):
armchairincome.link/snow
➡️ Seeking Alpha ($50 Coupon +Free Trial): armchairincome.link/SeekingAlpha
RQI (REIT) Article:
armchairincome.link/RQI.article
BXSL Review: • BXSL: 11.3% Yield & My...
BDC Funds (including PBDC): • Should You Buy a BDC F...
Preferred Stock Overview (including PFFA): • Profiting from the Piv...
Dividend Tracker Review: Snowball vs Simply Safe: • Dividend Tracker Showd...
📈RESEARCH:
➡️ The REIT Forum (10% Discount Exclusive to Armchair Income Viewers):
armchairincome.link/The.REIT....
🎥 PLAYLIST:
Top 10 Favorite Income Investments: • Top 10 High Yield Favo...
=======================================
🤓 DETAILED INFORMATION:
✅ Seeking Alpha:
My #1 source of income investment information. I've been a subscriber for more than 6 years and my favorite feature is the collection of analysis articles for any given stock or fund.
www.sahg6dtr.com/R42XQZ/R74QP/
✅ Snowball Portfolio Tracker:
Keep track of your stocks, ETFs, CEFs, MLPs, etc in one easy-to-use place. View upcoming dividend payouts, daily/monthly/yearly income. Subscribe to the Free Account, and the 10% Discount will appear: armchairincome.link/snow
(or enter "armchairincome" for the Promo Code)
------------------------------------------------------
The information on this KZbin Channel and the resources available are for educational and informational purposes only and should not be construed as financial advice. Always do your own research before investing. Some links provided above may be associated with affiliate programs. If so, use of those links will not incur any additional cost to the user (and will, in many cases, provide a benefit to the user) and may result in a referral commission to this channel.
#armchairincome #seekingalpha #Incomefunds #snowball #ad
Edited with Gling AI: bit.ly/46bGeYv

[@armchairincomechannel]

Snowball Dividend Tracker (Create a Free Account, and the 10% Discount will appear under "Subscribe"): armchairincome.link/snow

[@PS-ps6ow]

Please make a video on Buffer ETF Defined outcome ETF

[@pavXX]

Awesome rundown, thanks! Love Snowball.. been using for a few months now.

[@armchairincomechannel]

Thanks for your feedback. I'm enjoying Snowball too!

[@edmitiu7383]

Thanks for the usable info

[@armchairincomechannel]

My pleasure. Thanks for letting me know :)

[@ronaldreagan6756]

Terrific content once again! Thank you!

[@armchairincomechannel]

I appreciate your feedback and glad you enjoyed it.

[@AnthonySpackman]

New to the channel, your videos are terrific!

[@armchairincomechannel]

Glad you like them!

[@et_phonehome_2822]

Thank you for the reviews as always. I’m always looking for yields that are safe and exceptional.

[@armchairincomechannel]

My pleasure, thanks for watching and taking the time to comment.

[@DP52001]

You are the absolute best! Thank you for another amazing video!

[@armchairincomechannel]

Wow, thank you! Comments like yours are an excellent motivator to make more videos :)

[@DP52001]

@@armchairincomechannel all good / my pleasure! Do you do any 1 on 1 consultations/discussions?

[@armchairincomechannel]

I don't offer a paid service but if you have a question, feel free to email me at [e-mail]

[@johnmaria205]

Honestly, probably one of the best investment sites period! To the point and very educational.

[@armchairincomechannel]

Thanks! I appreciate your feedback :)

[@behemothl9298]

Great video! Got a fixed income CEF for ya. ARDC is run by Ares management. Yields 10% and did cut in 2020., but has raised 4 times since! Selling at a discount too. Cheers!

[@armchairincomechannel]

Thanks for your feedback and for your suggestion. Now I have some homework to do...the good kind :)

[@mrockefeller10mr]

LOVE this Channel!!!!!!!!!!!!!!!!!!!!

[@armchairincomechannel]

That's great to hear....or read...thanks!

[@janoz06]

Another no nonsense excellent video thanks

[@armchairincomechannel]

Glad you enjoyed it

[@Nemo-yn1sp]

Thank you for the heads up on PBDC. I have several CEFs including RFI & RNP rather than RQI, and several individual BDCs, which I like better than a fund holding them. JEPQ is the only ETF I have for income, the rest are for specific investment exposure, either to a sector I don't have enough of, or companies I want to own, but don't pay. Thanks again. New subscriber to your worthwhile content. Appreciate the no frills/noises professional presentation.

[@armchairincomechannel]

Thanks for sharing all that info. I've had RNP on and off for a while too. When interest rates fall I'll probably load up on a few more CEFs.

[@Nemo-yn1sp]

@@armchairincomechannel I'm not seeing any bargain buys among those I hold and I only buy bargains. :)

[@goose-F16]

Great summary.. Im in the same 2, additionally AMLP vs MLPA, and not any funds of funds except PBDC as you are.. I do have several of the Cohen & Steers funds too including UTF, RQI, RNP at smaller weightings I will use UTF and UTG as a pairs position.. fwiw...thanks for the summary!

[@armchairincomechannel]

Thanks for sharing. We have a few funds in common :)

[@venim566]

Great video! Love the channel! Have you looked into HYT? 9%+ yield of corporate debt. Amazing distribution history

[@armchairincomechannel]

Yes, I like it too. Long history. Over the past 5 years the total return is comparable to ARDC and over the past 1 year FSCO has had a good run. HYT is on my radar. Thanks for mentioning it!

[@JoeSanders-ku8dn]

Great info

[@armchairincomechannel]

Glad it was helpful!

[@sergiomildner7903]

Thank you só much for your content.Greetings from Brazil.

[@armchairincomechannel]

Obrigado! Greetings from Vietnam :)

[@enricomonesi5856]

Always looking forward to your videos.......I am head over heels on CSWC.......outperformed the S&P 500 in all time frames. It trades at a high premium......YES......but for a reason.......just my 2 cents worth....... and again, love you work😊

[@armchairincomechannel]

CSWC has been on a tear. Hard not to fall in love with it :)

[@paytax4707]

Excellent review

[@armchairincomechannel]

Glad you liked it!

[@JoeSanders-ku8dn]

Great info . I love dividend stocks . Thanks for the info. Regards Joe

[@armchairincomechannel]

I love dividends too! Thanks for watching.

[@dominiquetheeasyminimalist]

Excellent alternative to holding individual stocks. For now I’m happy with my BDCs up between 10-40% + distributions over the past year, and PFFA starting to rise!

[@armchairincomechannel]

Thanks for sharing!

[@2025Lax]

this is awesome. it is a whole new world for me!

[@armchairincomechannel]

Welcome :)

[@roberttaylor3594]

well, that was interesting. I believe I will subscribe!

[@armchairincomechannel]

Glad it was helpful :)

[@spain77777]

Great video, would like more often videos jajaj , also ranking all the CC etfs would be nice👍🏻

[@armchairincomechannel]

Thanks for being one of the first to watch the video! I can't promise videos more often (they take a long time to research, shoot and edit), but I appreciate your suggestion to rank cc etfs and will take it under consideration :)

[@armchairincomechannel]

Thanks for your feedback. Ranking cc etfs is an interesting idea :)

[@AmeriGlobal]

Finviz, Stock Analysis, Portfolio Visualizer, and CEF Connect websites are very good for comparing etfs, closed end funds, and stocks.

[@nerenahd]

Great video, bro.

[@armchairincomechannel]

Thanks for letting me know :)

[@RonnieM90]

Some other options are HIPS and VPC. HIPS provides exposure to MLPs, REITs, BDCs, and CEFs. VPC provides exposure to BDCs and CEFs.

[@armchairincomechannel]

Will check them out, thanks for sharing as always :)

[@scotthirsch3479]

Wow, this video comes out and now futures for PBDC are up over 4%! I didn't know your videos rock the market!

[@armchairincomechannel]

Boom goes the dynamite! I talk...the market listens ;)

[@kaosimagery]

@@armchairincomechannelReminds me of the E.E. Hutton commercials in the 70s and 80s...amended here for you..."When Armchair Income talks, people listen." :)

[@armchairincomechannel]

Exactly...

[@citizenoftheyearCC]

Beating the market while giving close to a 10% yield - now that is the best of both worlds!

[@armchairincomechannel]

I agree, it's a little gem! Thanks for being an early viewer and commenter again :)

[@tmtallman]

I like Closed end funds as well. BCX, BTO ,DFP, HQH, RVT, USA covers about everything in the investment universe.

[@armchairincomechannel]

CEFs are a bit challenged at the moment because their interest expense is high but they should do well as rates fall. Thanks for the tickers...now I have some homework :)

[@alvinjohnson9531]

I like these close-end funds; NRO, MGF, IGD, GGN.

[@97carded]

I own pffa and cefs. I like pffa better for the long time. Keeping a close eye on cefs, I am up 8% but all dividends have been reinvested. Enjoy your videos and 8% percent rule.

[@armchairincomechannel]

Thanks for your feedback, and for watching :)

[@lisagayhart2482]

Jepq , Vti . But lately I have been playing with Nvdy and cony . They are not to be left and forgotten. But great yield if you can look at your fund every week

[@armchairincomechannel]

Thanks for sharing.

[@mikeconnell698]

I'm staying away from real estate and anything with exposure to commercial real estate. I'm looking forward to your next video on QQQI however before jumping in with it.

[@armchairincomechannel]

Thanks. The next video will be about QQQI....coming soon!

[@sdrs95a]

Excellent video! I own: PBDC and 10 individual BDCs. Closed End fund: ADX. The only REIT I own is ABR. HESM is my only Energy investment. Previously owned: RQI, & a fund similar CEF to PFFA, but sold them years ago. I understand why you think these areas are undervalued and you may be right, but I prefer to stay clear of these type funds, not good risk/reward to me, leverage creates big downward movements.

[@armchairincomechannel]

Wow, we have a lot of stocks in common! I like ADX too but am impatient for that annual distribution. Thanks for sharing!

[@sdrs95a]

@@armchairincomechannel In your last top 10 list, I own 8 of your 10. As previously mentioned, you own BST & I own STK, so in a way we own 9 out of 10 since these are similar.

[@armchairincomechannel]

Great minds! At some point I want to get some STK; it's a great fund.

[@international_dividend]

Aussie here... I'm also in PBDC and PFFA. I prefer, and hold, RNP to RQI.

[@armchairincomechannel]

G'day! I like RNP too. Thanks for watching and great to see another Aussie investing internationally.

[@international_dividend]

@@armchairincomechannel Thanks for the response, mate. Quick question, do you just eat the 30% withholding tax or did you find a way around it? Or are you based in the US? I've been in Asia for years and likely remain for a few more years before retiring to the Qld coast.

[@armchairincomechannel]

Many asian countries have a tax treaty agreement with the US that changes the default 30% withholding to 15%. After that, if your account is of reasonable size, you can file a tax return with the IRS and if the actual tax due is less than 15% then they will issue you a refund which would exceed the cost of the accountant preparing the tax return. I was going to retire to Noosa but later realized I like living in Asia and visiting Noosa instead of the other way around! If you have any other questions, reach out via the Armchair Income Community as its impossible to keep up with all the comment threads.

[@hulenbryant5637]

For preferred stocks I own Cohen & Steers RNP. paying 7.72% distribution currently. Combination of REITs and preferred stocks.

[@armchairincomechannel]

I made a video on that one last year. I also like RQI. Thanks for sharing.

[@user-dw2iu8rz9s]

I agree with you. I personally don't hold PBDC but would if I didn't already have a lot of BDCs and picked them up at low prices during the last bear market so wouldn't make sense to buy now. Probably a good thing to buy though for most folks. Perfect example of why you should let the pros pick bdcs would be what TPVG did after earnings yesterday. However these big funds have missed out on some funds like TRIN that not to long ago was trading for $10 in the last bear market and is now at $15. So I think folks should still be on the look out for good BDCs that are newer to the market. I do hold PFFA. Great fund. Even with interest rates staying high the share price has recovered some this year. I don't like MLPs, REITs, or CEFs. Not worth the risk/return when I can just buy something like a good out of the money covered call etf with a higher yield and more sector diversification. I do like HESM and Enbridge as well in terms of individual energy stocks. Great video!

[@armchairincomechannel]

Thanks for all that feedback. We're on the same wavelength. BDCs are on a great run but there are still some dogs in the mix so you have to choose well.

[@brianroose7734]

I am buying 35 bdcs in a sub portfolio. Going to have this in two separate overall portfolios. Going to this sub portfolio system to boost income. Also have cef, reit, mlp, and other subs. Hopefully will double up on dividends coming in

[@armchairincomechannel]

Wow, you're a dedicated fan of BDCs! Thanks for sharing your strategy.

[@sweetdividends]

There's a shipping ETF balled BOAT. Good yield...no idea on long term if it will sink. I'm always nervous about the high yields on individual shipping stocks, so trying my sea legs on this ETF.

[@armchairincomechannel]

Interesting...I'll take a look. Perhaps there's room for 1 or 2 more maritime metaphors :)

[@tritosac]

Your next covered call ETF's you should do a video on are the Roundhill investments XDTE & QDTE. These pay weekly rather than monthly. I am still doing my own research as well to know the management teams background. The above ETF's are based on the S&P 500 and Nasdaq 100.

[@armchairincomechannel]

Thanks for the suggestion, I'll take a look at those. I'm not familiar with them.

[@laughuntilyoucryordie]

These two do not come up on SA!

[@hansschotterradler3772]

PBDC looks good and found a place on my watch list. I got out of MLP's last year. The additional tax preparation expenses wasn't worth it for such a small holding.

[@armchairincomechannel]

Thanks for sharing. The tax part can be a hassle depending on whether the company delays issuing the K-1.

[@hansschotterradler3772]

@@armchairincomechannel I held ET and PAA, and they didn't issue the tax forms until end of March. That gave me just 2 weeks to file my taxes. This was only 2.5% of my portfolio; wasn't worth the trouble.

[@mrjsanchez1]

These all seem like interesting investment funds, the only problem I have is the expense ratios all seem pretty high. Nicely done video.

[@armchairincomechannel]

Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this section of Putnam's website: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses and in this video I made about BDCs: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@mrjsanchez1]

@@armchairincomechannelThanks!

[@et_phonehome_2822]

@armchair income: do you ever recommend dripping CEFs?

[@armchairincomechannel]

It's a matter of personal preference. I wouldn't spend every penny of the distributions. Most of them don't grow much in value so reinvesting some of the income allows your income to grow. Also, it's important to stay ahead of inflation. If you're asking as an investor that's not withdrawing any distributions, then my personal preference is to reinvest the distributions based on the best available investment options at that time, rather than auto reinvesting into the same fund (which may be under or over priced at that time).

[@theSlowBroke]

I have a very similar outlook regarding these. I have PFFA but I'm stuck with BIZD until PBDC comes to M1 😑

[@armchairincomechannel]

I highly recommend having more than 1 brokerage account to avoid hassles like that. Thanks for sharing :)

[@vichart011]

Can you suggest any good high dividend, paying ETFs or stocks that we can do the wheel on it?

[@armchairincomechannel]

I'm not experienced with the wheel strategy. I suggest checking out the "Wealth Adventures" channel as he does this regularly.

[@logicae4096]

I have the following BIZD - because I wanted to see more history of PBDC PFXF - Not sure about financials SCHD UTG PEY USHY RQI - been keeping my eye on this. BST

[@armchairincomechannel]

Nice list, thanks for sharing :)

[@paladinfinancial]

Z score for RQI is at -.01, so not really undervalued per se in the short/medium term looking back.

[@armchairincomechannel]

True. Z scored is more sophisticated than a simple price versus NAV ratio. Whether RQI is undervalued or fairly valued depends on your benchmark.

[@rejeanorscott1555]

Do you know of an app that tracks dividends that does not have access to one's various portfolios?

[@armchairincomechannel]

I use Snowball and enter the buys/sells manually. armchairincome.link/snow

[@user-oh5gv1ir5v]

So here is an idea MLPX it has a lower yield because it’s a mix between MLPs and energy stocks it comes with dividend growth

[@armchairincomechannel]

It’s on my short list to research because that dividend history is fantastic. Thanks for the suggestion!

[@brucef1299]

I really need to explore CEFs in greater detail before investing. I do wish there was a PBDC equivalent in the CEF space to make our lives simpler.

[@armchairincomechannel]

Haven't found a CEF fund I can get excited about yet. Doesn't seem like it would be that difficult to run!

[@brucef1299]

@@armchairincomechannel Maybe we can get a co-branded CEF fund started with Steven Bavaria. Call it the Armchair CEF Fund.

[@AmeriGlobal]

@@brucef1299 CSQ and ACV have very good total returns.

[@armchairincomechannel]

Thanks, I've been researching ACV for a while. Will take a look at CSQ.

[@notdoneyet7785]

a newbie nuts & bolts question on yield & fees. using the PFFA security as the example. when i looks on fidelity it showed a yield of 9.473% (nice). and it also shows an expense ration of 2.52% (maybe not so nice). so the question, is the yield of 9.473% before or after that expense ratio? i would think they hold their fee out and then distribute you the left over so maybe 9.473 is what the investor realizes? or is the fee taken out in some separate way like a special distribution to themselves?

[@armchairincomechannel]

The yield you receive of over 9% is calculated AFTER the fees have been taken out, ie it represents the actual net yield you'll be paid. Note that the management charge a 0.80% fee. The rest is interest expense...a cost incurred by every leveraged fund.

[@notdoneyet7785]

@@armchairincomechannel thanks. i guess i have some learnin to do. i have such a suspicion of any yield above 4%, it just always feels like the floor's gonna drop out on these hi yield investments that are so loved on this channel. 6-7% seems like a godsend to me, let alone this 10-16% stuff that seems to come up here regularly.

[@ScottOrchard-rt1wh]

Really appreciate your channel and insights. Just one thing, I find PBDC interesting, but be very careful. It has very little liquidity. Only an average of 29k shares a day. Someone selling only a few thousand shares in a day, can very negatively affect this fund.

[@armchairincomechannel]

That's a great point. Best to use limit orders on low volume to prevent surprises.

[@ScottOrchard-rt1wh]

@@armchairincomechannel I’m

[@PS-ps6ow]

Please make a video on Buffer ETF Defined outcome ETF

[@armchairincomechannel]

Thanks for the suggestions. I'm not familiar with those but I'll take a look and see if they fit into a high yield income strategy.

[@frescofotograf709]

Thank you for this great video ! PBDC has % 6.79 expense ratio, why so high ? Thank you !

[@armchairincomechannel]

The management fee is 0.75% which is reasonable. A large chunk of the "expense" is acquired fund fees which is just a classification of the expenses from within the BDCs internal operations as "fund fees" when that's not really the case. It's explained here:www.franklintempleton.com/investments/capabilities/etfs/pbdc-acquired-fund-fees-expenses

[@frescofotograf709]

@@armchairincomechannel It’s clear now glad to hear that :) Many thanks for your support 🙏🏻

[@One6pack]

Just know the K-1 isn't available till mid to late March. So will need to hold off doing your taxes til then.

[@armchairincomechannel]

That's a good point. It can lead to filing for an extension.

[@JackMoynihan16]

I’d like to hear your thoughts on DNP. Also, Snowball’s projected dividend payouts overall seem too high on a number of funds. I like the optimism but wonder how realistic they are imo.

[@armchairincomechannel]

For a utility CEF I prefer UTG because it has delivered a higher total return and more dividend increases. However, I haven’t done a deep dive on DNP.

[@laughuntilyoucryordie]

Great fund but usually runs at a large premium to NAV!

[@armchairincomechannel]

True. The best ones usually do.

[@bills.1390]

Another good MLP fund that does not issue a K1 is KYN yields 8.3% currently.

[@armchairincomechannel]

I looked at KYN briefly but the dividend cuts put me off. If there's a good explanation regarding why those won't repeat themselves I'd be open to it.

[@notdoneyet7785]

a question about the leverage of some of the funds. the market has been up so results look good across much of the market, and these leveraged funds have had extra "juice". particularly on RQI you mentioned thinking the leverage could be an extra plus when interest rates go down. but i'd think the leverage could be stone around the neck of the fund if interest rates fall along with (due to) a recession. leverage juices the fall just like it juices the rise when times are good. i'm just concerned about putting too much faith in falling interest rates giving across the board benefits.

[@armchairincomechannel]

I've made a few choices based on the benefit of falling interest rates, but mostly I'm focused on stocks/funds that pay consistent income regardless of interest rates. As for leverage, yes it increases yield and risk at the same time. I mitigate some of that risk with diversification (max 5% to any fund). Lower interest rates will have mixed effect, it won't be good or bad across the board. For example, for BDCs it will mean thinner profit margins on lending, but also lower default rates. It will be good for REITs and CEFs that use leverage because their interest expense will drop.

[@wernerschonenberger3038]

PBDC's performance is great but I consider it too expensive to buy it know. It'll sit on my watchlist PFFA is a real "relief" because "wading" thru all those preferred shares is a hassle and there's the danger to run into a yield trap when buying a convertible RQN has been around "forever" ... longevity is a good thing Will look into CEFS

[@armchairincomechannel]

Thanks for sharing. I agree, Preferreds are a lot of homework!

[@scalptrader87]

Great video, is PBDC expense ratio really over 6%?

[@armchairincomechannel]

Heck no! It’s 0.75%. Explained it in the newest video.

[@scalptrader87]

@@armchairincomechannel phewwww ok will watch , thanks! Love BDCs have MAIN and ARCC

[@dpragain]

What is going on with the 10% expense ratio for PBDC?

[@armchairincomechannel]

Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this video: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@dpragain]

@@armchairincomechannel Thanks

[@dennis6325]

I prefer RFI over RQI (Same distribution with zero leverage). I prefer KYN over MPLA (KYN merged with a sister fund and restructured itself to allow owning midstream companies that are not tax structured as MLPs which will give them much greater flexibility and dividend growth moving forward). I don't like BDC's because of the below investment grade credit ratings. Most BDCs invest in debt sporting B to BB credit ratings which have far too high of default rates for my liking. As for CEF's...I like them...I use KYN for midstream/infrastructure...I use DNP for utilities/midstream...I use RFI for real estate. The latter two do invest a bit in preferred stock and corporate bonds. I am also not a fan of using covered-call funds for more reasons than I want to list.

[@armchairincomechannel]

Thanks for outlining your approach. I don't agree with all your points (eg the risk/reward on sub investment grade makes sense in some situations), but we're generally aligned. There's a lot to be said for RFI's lower risk approach.

[@dennis6325]

@@armchairincomechannel That was a very gracious response. I don't always agree with my approach either. Ha! Thanks for the videos.

[@dudewheresmyguitar21]

Rqi sounds solid to me

[@armchairincomechannel]

I think its worth looking at if you want real estate exposure.

[@joeyoutdoors]

Is it true that PBDC has an expense ratio of 6.79%???

[@armchairincomechannel]

No, not really. Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this section of Putnam's website: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses and in this video I made about BDCs: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@byteme0000]

I like the idea of simplifying my BDC investments via a single ETF, so PBDC is interesting to me. As I write this, the current distribution yield is 9.29%, and that's with someone else doing all the shuffling of the various BDC shares on my behalf. All good so far. I can't get past the 6.79% expense ratio, however. What's up with that?

[@armchairincomechannel]

Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this section of Putnam's website: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses and in this video I made about BDCs: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@alchavana6831]

Pbdc- what is the expense ratio?

[@armchairincomechannel]

PBDC charges a management fee of 0.75%. Most of that expense quoted on websites is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this section of Putnam's website: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses and in this video I made about BDCs: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@mattolson6861]

thoughts on CGDV?

[@armchairincomechannel]

I'm targeting a blended yield of approx 8% so this fund at less than 5% is outside my wheelhouse. I don't have any thoughts on it but thanks for the suggestion :)

[@uansam3439]

Can you tell why PBDC expense ratio is over 6.79%?

[@armchairincomechannel]

Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this section of Putnam's website: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses and in this video I made about BDCs: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@uansam3439]

Thank you for the clarification

[@jmeyer99]

I noticed that you only invest 1-3 percent of your portfolio in your recommendations. Why not more? What do you do with the rest of your portfolio?

[@armchairincomechannel]

I have a 5% cap. For example, SPYI, PBDC, PFFA, etc are currently 5% of my portfolio. At that rate, my portfolio would be 20 stocks/funds. However, I'm interested in more than 20! I have approx 35 at the moment. If I'm new to a stock or the price seems a bit high, I'll invest less than 5%. I don't invest more than 5% in one thing because I'm retired and preservation is more important than maximizing returns. At 5%, a major correction with one investment won't cause me problems. In short...diversification. Later this year, I'll spend more time on this subject and get more specific about it.

[@jmeyer99]

@@armchairincomechannel Good stuff. I look forward to more. Thanks!

[@mjsmcd]

Pbdc now monthly div? When the switch?

[@armchairincomechannel]

PBDC distributes quarterly. I don't understand the question...did I accidentally say monthly somewhere when referring to PBDC? If so, my bad :)

[@mjsmcd]

@@armchairincomechannel perhaps it was another stock u mentioned

[@HowHingPau]

In this review, you noted CEFS's expense ratio of 2.42% as high. Why did you specifically single out CEFS? Your favorite in this list, PBDC, has an expense ratio of 6.79%, but you didn't mention it. Your other favorite, PFFA's is 2.52%. Heck, your 2nd pick in this list is BIZD which has a staggering 11.17% expense ratio! Why was that glossed over?

[@armchairincomechannel]

I've addressed it before but you make a good point, I should have mentioned it in this video too. Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this video: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@Optimus-Prime-Rib]

Why would PBDC be a good buy with an exp ratio of 6.79%??

[@armchairincomechannel]

Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. If you read the prospectus, the management fee is actually less than 1%. It's a confusing SEC rule and its explained in this section of Putnam's website: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses and in this video I made about BDCs: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@Optimus-Prime-Rib]

@@armchairincomechannel thanks for taking the time to educate me regards this, I had no idea. I really appreciate it. 🍻 PBDC is going into my portfolio now on Monday!

[@dougcarnall]

What is the expense cost?

[@armchairincomechannel]

Not sure which fund you're asking about but PBDC and BIZD appear to have high expense ratios so I'll answer that one....PBDC's actual expense is 0.75%. Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this section of Putnam's website: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses and in this video I made about BDCs: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@dougcarnall]

Thank you 👍

[@mundie33]

Is the fee really almost 7% though?!

[@armchairincomechannel]

The management fee for PBDC is 0.75%. The rest is a compilation of business expenses from within the companies. It's a confusing SEC requirement particular to BDC funds. It's explained here: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses

[@brianw3663]

SVOL is great

[@armchairincomechannel]

I'm a fan of SVOL too :)

[@brianw3663]

I do appreciate the introduction to these BDCs.

[@martonem]

PBDC expense ratio is like 7%

[@armchairincomechannel]

Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this video: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@jonathanfoster2263]

wow! bizd has an expense ratio of %11? that's higher than its yield!

[@goose-F16]

need to read about why.. Exp includes interest and and wholistic ROC.. lots of videos on that in Airmchair's channel.

[@armchairincomechannel]

Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this video: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@sonja8942]

Is this a quarterly

[@armchairincomechannel]

A quarterly....what?

[@sonja8942]

Quarterly distribution? I’ll look it up on Dividend Investor.

[@ivan11h]

Sometimes ya fun to lock legit cef at 15%, and milk that sucker as long as she gives

[@jimmcgrath3468]

RQI Appears to have a high Return of Capital

[@armchairincomechannel]

Last month it did, but generally no. 2 of the last 10 distributions had a high return of capital. Most of them had zero return of capital, per the fund website: www.cohenandsteers.com/funds/quality-income-realty-fund/

[@169Tomh]

Pbdc fees are 😳 is that for real?

[@armchairincomechannel]

Not for real! Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this section of Putnam's website: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses and in this video I made about BDCs: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@satinderbank4607]

MER too high on these, eroding the returns vastly.

[@armchairincomechannel]

Higher fees reduce the gross return, but not necessarily the net return. It depends on the manager's performance. I don't mind paying managers a fee if they add value. My goal isn't to pay the lowest fee, its to get a good balance of consistent income and total return. PBDC charges 0.75% for example. They're analyzing the BDC market; buying and selling the BDCs based on value and risk. Who does that for less than 0.75%? BIZD charges less because they just follow an index, so perhaps that's a better fit for you. But PBDC's active management has outperformed BIZD. Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this section of Putnam's website: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses and in this video I made about BDCs: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@Asstronauts93]

some of these funds have 2% or more expense ratio!!!! not good

[@armchairincomechannel]

PBDC's actual expense is 0.75%. Most of that expense is actually from the operating expenses of the BDC companies inside the fund, nothing to do with the fund itself. It's a confusing SEC rule and its explained in this section of Putnam's website: www.putnam.com/individual/etf/PBDC-acquired-fund-fees-expenses and in this video I made about BDCs: kzbin.info/www/bejne/nJ3alnRrptChj8k

[@PJBHolden]

PBDC expense ratio = 6.79 % ! Jack Bogel is rolling over in his grave

[@armchairincomechannel]

Jack can rest easy. He liked index funds and those passive vehicles should charge the lowest fees possible. The management fee for PBDC is 0.75% which is reasonable. A large chunk of the "expense" is acquired fund fees which is just a classification of the expenses from within the BDCs internal operations as "fund fees" when that's not really the case. It's explained here:www.franklintempleton.com/investments/capabilities/etfs/pbdc-acquired-fund-fees-expenses

[@bills.1390]

I like FRA - (BLACKROCK FLOAT RATE). It yields 11%, pays monthly, sells at a slight discount -1% and the price is reasonably stable. GGN - (GAMCO GLOBAL GOLD NTRL RSRCS INC CF). This fund yields 8.8% and is in the Gabelli family of funds, investing mostly in energy and gold. Price is up a bit now, +1 % premium, but does not vary much.

[@armchairincomechannel]

Thanks for the suggestions. The dividend cuts put me off GGN but I'll check out FRA :)

[@laughuntilyoucryordie]

I like and own MPLX over MLPA! 8.41% verse 7.25%

[@armchairincomechannel]

MPLX is less diversified but it has a far superior dividend history. Just have to be OK with the K-1.

[@laughuntilyoucryordie]

@@armchairincomechannel Yes. But I own it in my ROTH so no need to deal with the K1 😉