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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: SeeksQuality who wrote (11517)	11/19/2024 3:45:54 PM
From: jritz0	Read Replies (1) \| Respond to of 22059

The only explanation that would seem to make sense for the better than expected performance would be from the distributions. Below is my quick summary of how the distributions are derived using collateral and the dividend strips: I think some confusion comes into the picture with how distribution is derived. The dividend is a synthetic dividend. The Current Dividend contracts weighting is Dec 2024: 3.49 %, Dec 2025: 4.11%, Dec 2026: 4.17%, Dec 2027: .079% These are derivatives that are bought using collateral. The total daily holdings can be downloaded to spreadsheet. The top 9 holdings are the treasury notes used for collateral. The 52- 55 holdings are the dividend indexes (ASZD24 thru ASDZ27). All the other positions are the stocks in the S&P 500. Since these are derivatives there is a risk premium associated with them which would help with the total return if there isn't a dividend cut. Also, the dividend indexes are based on analyst projections that have historically been lower than the actual dividends which create some premium. I have mentioned before that there is a risk of underperformance if SPY dividends are cut, but these are bought yearly so that helps mitigate some damage. Here is the explanation with more detail straight from the horse's mouth if interested. I would suggest anyone with an interest in QDPL at least have a general understanding of how QDPL works. pacer_perspective_december_2022_part2.pdf