Take Your Yield to the Max
The Dividend Max strategy aims to maximize high current monthly income by holding high dividend yielding ETFs that primarily institute covered call strategies or other option tactics.
The portfolio generates monthly income by selling volatility premium and any available capital appreciation. Dividend Max diversifies across stocks, commodities, and bonds. This actively managed basket of ETFs looks to convert option volatility to cash flow by taking advantage of the natural time decay premium sellers benefit from.
While portfolios resemble a 70/30 allocation, it may hold tech stocks which may display higher volatility than the S&P 500 Index.
Performance
Dividend Max
| as of 03/31/2024 | MTD | Cum YTD | 1 Year | 3 Year | 5 Year | 10 Year
|
ITD |
| Div Max Net* | 4.43% | 8.87% |
|
|
|
37.43% | |
| Bench (S&P 500) |
3.22% | 10.56% | 29.87% | 11.50% | 15.06% | 12.97% |
Note: Returns are expressed in US Dollars and calculated net of actual fees. Performance includes reinvestment of dividends and other earnings.
ZEGA Financial is a registered investment adviser and investment manager that specializes in derivatives. ZEGA is a separate accounts manager and all returns expressed herein are solely from the separate accounts business within ZEGA.
The ZEGA Dividend Max is an ETF portfolio made up of 10-20 high dividend ETFs. Some of the ETFs in the portfolio may be individual stock ETFs that deploy an options income strategy designed to produce higher monthly income. Tactics within the ETFs includes active management selling call options on either the underlying asset or a synthetic long asset. All portfolios that are at least 70% allocated to this strategy are included. The benchmark is the S&P 500. The S&P 500 Index is a collection of 500 of the largest publicly traded US Equity large cap companies. The minimum account size for this composite is $50,000. ZEGA Financial claims compliance with the Global Investment Performance Standards (GIPS). To receive a full list of composite descriptions of ZEGA Financial and/or a presentation contact Jay Pestrichelli at 1-800-380-9342, ext. 101 or jay.pestrichelli@zegafinancial.com
All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results and there can be no assurance, and clients should not assume, that future performance of any of the model portfolios will be comparable to past performance.
These results should not be viewed as indicative of the advisor’s skill. The prior performance figures indicated herein represent portfolio performance for only a short time period and may not be indicative of the returns or volatility each portfolio will generate over a long time period. The performance presented should also be viewed in the context of the broad market and general economic conditions prevailing during the periods covered by the performance information.
The actual results for the comparable periods would also have varied from the presented results based upon the timing of contributions and withdrawals from individual client accounts. The performance figures contained herein should be viewed in the context of the various risk/return profiles and asset allocation methodologies utilized by the asset allocation strategists in developing their model portfolios and should be accompanied or preceded by the model. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility.