This Fund Pays 400% of the S&P’s Dividend and Still Beat Half of Wall Street This Year
QDPL offers four times the dividend yield of the S&P 500 index fund SPY, while trailing SPY's year-to-date return by just 28 basis points. QDPL combines the S&P 500 large-cap holdings with S&P 500 annual dividend futures, delivering monthly payments instead of quarterly with minimal price sacrifice. While SPY yields 1% annually, QDPL pays a 4.42% annual yield, paid monthly, and has returned 13.57% year-to-date compared to SPY's 13.85%.
QDPL's holdings mirror SPY, with major companies like Apple, Microsoft, Amazon, Broadcom, and Alphabet represented, and the remaining assets invested in S&P 500 annual dividend futures. The fund charges 0.60% in annual fees, which is a premium compared to SPY's 9 basis points. QDPL's strategy holds up for income-focused investors who prefer to avoid selling shares of SPY to meet monthly living expenses, as QDPL's higher yield and more frequent payments can help with budgeting. However, the tradeoff is a slight reduction in price appreciation.
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