One thing I’ve been trying to build into my income strategy is the idea that it’s usually better to follow strength than to keep betting that a weak fund is suddenly going to reverse.

Of course, the biggest money can sometimes be made if you catch a turnaround early. If a fund has been beaten down and then its NAV trend suddenly improves, that can be very profitable. But statistically, that’s harder to do consistently and a lot of research on momentum and trend-following shows that assets with strong recent performance often have better odds of continuing to perform well in the near term than weak assets suddenly becoming winners.

That’s basically why I use my NAV Delta approach

For income funds, I don’t only look at yield. A 15%, 20%, or 30% yearly distribution rate can look amazing but if the NAV keeps bleeding, then part of that income may just be capital erosion in disguise. I track whether the fund’s NAV is holding up over different windows:

- Trailing 12-month (TTM) NAV Delta = longer-term structure

- 3-month NAV Delta (3M) NAV Delta = recent momentum

- Since Inception (SI) NAV Delta = since-inception picture, especially for newer funds

- 70/30 score = 70% TTM + 30% 3M, or 70% SI + 30% 3M for newer funds without TTM.

The idea is not that this predicts the future perfectly, it does not!
Momentum can reverse and strong funds can break down. That is why diversification is essential to my strategy because without it, NAV Delta analysis can turn into just another concentrated bet.

I prefer income funds built on broad baskets of holdings instead of single-stock ETFs because one company-specific shock can break the whole thesis even if the yield looks great. Single-stock income ETFs can still have a place but for me they’re more tactical, I use them when they are the only practical way to get exposure to a specific sector or theme I want. Otherwise, I push to get the income from a diversified fund where the NAV trend is supported by many holdings, not one stock having to behave well.

My basic rule

I would rather add to funds where the NAV Delta trend is already stable or improving, showing positive momentum, instead of trying to guess the exact bottom in a fund with a deteriorating NAV.

That does not mean I never buy turnarounds, it just means I treat them as lower-odds/tactical bets, not the core of my portfolios. For more detail on my NAV Delta framework, how I use it for entries/exits, and my overall portfolio strategy management, here’s the original post I wrote when I started this subreddit:

https://www.reddit.com/r/EngineeredIncome/comments/1re036m/how_ive_been_living_from_my_dividends_2_years_now/

Academic research behind the general idea

- Jegadeesh & Titman, 1993 — momentum in stock returns  

  https://doi.org/10.1111/j.1540-6261.1993.tb04702.x

- Moskowitz, Ooi & Pedersen, 2012 — time-series momentum across asset classes  

  https://doi.org/10.1016/j.jfineco.2011.11.003

- Asness, Moskowitz & Pedersen, 2013 — value and momentum across markets  

  https://doi.org/10.1111/jofi.12021

- Hurst, Ooi & Pedersen, 2017 — century-long trend-following evidence  

  https://doi.org/10.3905/jpm.2017.44.1.015

- Daniel & Moskowitz, 2016 — warning that momentum can crash  

  https://doi.org/10.1016/j.jfineco.2015.12.002

So for me, NAV Delta is not about chasing past performance blindly, it’s more about asking: is this income fund actually preserving its base while paying me, or am I just being paid with my own capital while hoping for a turnaround?

https://yieldmaxetfs.com/our-etfs/gpty/

I received dividends from these high-income ETFs and checked both my monthly yield on cost and their NAV Delta profiles before reinvesting. My goal wasn’t just chasing the highest payout, I wanted a mix that still targets about 2.35%/month while adding both broad exposure and a higher-yield tactical sleeve.

Dividends received, yield on my cost basis

- TDAX — TDAQ Lift ETF

  - Yield on cost: 1.90%/month

  - Cost basis: $24.59

  - NAV Delta: SI +2.21% | 3M +18.36% | TTM +2.21% | Score +7.06%

- GPTY — YieldMax AI & Tech Portfolio Option Income ETF

  - Yield on cost: 2.83%/month

  - Cost basis: $42.95

  - NAV Delta: SI -13.20% | 3M +17.70% | TTM -7.97% | Score -0.27%

- SDTY — YieldMax S&P 500 0DTE Covered Call Strategy ETF

  - Yield on cost: 2.06%/month

  - Cost basis: $44.67

  - NAV Delta: SI -17.67% | 3M +3.63% | TTM -8.22% | Score -4.67%

- QDTY — YieldMax Nasdaq 100 0DTE Covered Call Strategy ETF

  - Yield on cost: 3.08%/month

  - Cost basis: $40.93

  - NAV Delta: SI -20.00% | 3M +8.22% | TTM -8.80% | Score -3.69%

- CHPY — YieldMax Semiconductor Portfolio Option Income ETF

  - Yield on cost: 4.52%/month

  - Cost basis: $59.08

  - NAV Delta: SI +87.65% | 3M +37.86% | TTM +42.37% | Score +41.02%

- YMAX — YieldMax Universe Fund of Option Income ETFs

  - Yield on cost: 3.48%/month

  - Cost basis: $8.36

  - Formal NAV Delta: SI -60.16% | 3M +1.90% | TTM -42.34% | Score -29.07%

  - But post-strategy-change, I view it separately because the fund changed approach.

- SPYT — Defiance S&P 500 Target Income ETF

  - Yield on cost: 1.65% at $17.59

  - NAV Delta: SI -14.08% | 3M +6.49% | TTM -4.70% | Score -1.34%

I reinvested into this basket

- SDAY.NE — Hamilton Enhanced U.S. Equity DayMAX ETF

  - Allocation: 33%

  - Current monthly yield: ~1.46%

  - NAV Delta: SI +4.75% | 3M +6.47% | TTM +4.75% | Score +5.27%

  - Role: broader U.S. equity income exposure

- AVGY.TO — Harvest Broadcom Enhanced High Income Shares ETF

  - Allocation: 67%

  - Current monthly yield: ~2.79%

  - NAV Delta: SI +46.41% | 3M +6.99% | TTM +12.92% | Score +11.14%

  - Role: higher-yield tactical Broadcom income sleeve

Why this basket

The 33% SDAY.NE / 67% AVGY.TO mix targets roughly 2.35%/month. SDAY.NE gives me broader U.S. equity exposure, while AVGY.TO provides the income boost needed to reach my monthly yield target. I’m not just chasing yield, I’m using NAV Delta to avoid funds where the capital base is eroding too aggressively.

So, the portfolio has grown and now producing some crazy income. How are you calculating what percent of the distributions are usable/can withdraw to use?

Alright so today it's July 1st which means all my dividends from June have entered so I can calculate my monthly dividend yield.

Here's my June numbers:

• Started the month with a total market value of 411,787.50 CAD
• Ended the month at 411,663.76 CAD
• That’s -123.74 CAD in market value so -0.03%
• Collected 11,509.65 CAD in dividends for June, an increase of +16.38% compared to previous month.
• Total dividend yield for June (before taxes): 2.80%
• So total economic gain (price Δ + income) = +11,385.91 CAD

That puts my total monthly return for June at +2.77% before taxes. For comparaison the S&P 500 is down -1.1% over the same period so I beat the market!

My engineered income strategy still delivered, like every month, I reinvested $3,900 CAD in more income funds and used the rest to cover my expenses.

At my current portfolio yield, that should add roughly $109 CAD/month in future income, all else being equal. That's the beauty of compounding, every month I buy a little more income-producing assets which generate even more income the following month.

Here’s my full portfolio breakdown as of July 1st, 2026, ranked from highest to lowest allocation.

Core Engine (Top Allocations)

• CHPY – Tidal Yield Semiconductor ETF – 10.66%
• BCAT – BlackRock Capital Allocation Trust – 6.44%
• EGGY – NestYield Dynamic Income ETF – 6.23%
• UTES – Evolve Utilities Enhanced ETF – 5.29%
• EGGS – NestYield Guard ETF – 5.02%
• LFE – Canadian Life Companies Split Corp. – 4.92%
• ENCL – Enhanced Canadian O&G ETF – 4.60%
• GPTY – AI & Tech Yield ETF – 3.96%

Secondary Layer (2–4%)

• CDAY – Hamilton Enhanced Canadian Equity DayMAX ETF – 3.93%
• HHIS – Harvest Diversified High Income ETF – 3.39%
• RS – Real Estate Split Corp. – 3.30%
• BANK – Evolve Canadian Banks & Lifecos Enhanced ETF – 3.16%
• ECHI – Ninepoint Enhanced Canadian High Income ETF – 2.89%
• GGT – Gabelli Multimedia Trust – 2.55%
• CCOE – Harvest Cameco Enhanced High Income ETF – 2.45%
• SPCI – Space Industry Income ETF – 2.43%
• QDAY – Hamilton Enhanced Technology DayMAX ETF – 2.06%

Tactical Layer (1–2%)

• CLM – Cornerstone Strategic Value Fund – 1.78%
• NXG – NextGen Infrastructure Income Fund – 1.58%
• GLDI – Gold Covered Call ETN – 1.43%
• CAIQ – Calamos ETF – 1.43%
• CRF – Cornerstone Total Return Fund – 1.39%
• FFN – Financial 15 Split Corp. – 1.37%
• SLJY – Junior Silver Miners ETF – 1.29%
• DF – Dividend 15 Split Corp. II – 1.25%
• GIAX – Global Equity & Income ETF – 1.24%
• CCHI – Ninepoint Cameco High Income ETF – 1.23%
• YMAX – YieldMax Universe ETF – 1.18%

Satellite Positions (<1%)

• HAKY – Amplify ETF – 0.95%
• XPAY – Roundhill S&P 500 Target 20 ETF – 0.92%
• OILY – Evolve Canadian Energy Enhanced ETF – 0.92%
• IWMW – Russell 2000 BuyWrite ETF – 0.92%
• YUNH – Purpose UnitedHealth Yield Shares ETF – 0.91%
• XXV – Simplify Exchange Traded Fund – 0.89%
• OILK – ProShares K-1 Free Crude Oil ETF – 0.77%
• DGS – Dividend Growth Split Corp. – 0.71%
• KSLV – Kurv Silver Enhanced Income ETF – 0.70%
• SDAY – Hamilton Enhanced U.S. Equity DayMAX ETF – 0.62%
• NVII – REX NVDA Growth & Income ETF – 0.62%
• ABHI – Ninepoint Barrick Highshares ETF  – 0.61%
• SPYT – S&P 500 Target ETF – 0.52%
• HHIH – Harvest High Income Equity ETF – 0.50%
• LLHE – Purpose Eli Lilly Yield Shares ETF – 0.26%
• UNHW – Purpose UnitedHealth Yield Shares ETF (USD) – 0.17%
• TDAX – TDAQ Lift ETF – 0.12%
• ECAT – BlackRock ESG Capital Allocation Trust – 0.07%
• QDTY – YieldMax Nasdaq 100 0DTE Covered Call Strategy ETF – 0.06%
• XQQI – Nasdaq Income ETF – 0.04%
• SDTY – S&P 500 0DTE ETF – 0.03%
• IVR – Invesco Mortgage Capital – 0.03%
• XLKI – Technology ETF – 0.02%

Biggest changes since my June 1 snapshot portfolio breakdown

• EGGY jumped from 3.98% → 6.23%, becoming my third-largest holding.
• EGGS grew from 3.68% → 5.02%, now part of my Core Engine.
• CDAY increased from 2.42% → 3.93%.
• CCOE increased from 1.75% → 2.45%.
• USOI, SLVO, USOY, IGLD are no longer in my portfolio.
• New positions include NVII, ABHI, SDAY, LLHE, UNHW, TDAX, QDTY, IVR and XLKI.

Overall, my portfolio remains highly diversified but it has shifted away from commodity covered-call ETNs (USOI, SLVO, USOY) and toward NestYield funds, Canadian equity income and healthcare/thematic income strategies.

Since I started using Hermes Agent AI, I’ve been able to automate a daily review of my income funds right after market open, focusing on NAV Delta which tell me if the fund’s net asset value is holding up after paying distributions. I track it across since inception, trailing 12 months and 3 months then use a simple quality score: 70% trailing 12-month NAV Delta and 30% 3-month NAV Delta. The idea is to give more weight to the longer-term trend while still catching recent changes quickly.

In June, the AI-assisted NAV Delta process also helped me apply a more disciplined version of dividend capture. I’m not just buying funds randomly before ex-dividend dates, my rule is quality-driven. When a fund’s NAV Delta score falls below around -10%, I start considering trims, if it gets near -20%, I consider liquidating the position entirely. If that fund has already passed its ex-dividend date, I’m still entitled to receive that month’s distribution. Then with the sale proceeds, I try to rotate into stronger funds with better NAV Delta scores whose ex-dividend dates have not passed yet so in that case, the same capital can qualify for distributions from two different funds in the same month.

Dividend capture is usually difficult because in theory, a fund’s market price should drop by roughly the amount of its dividend after the ex-dividend date. But in practice, market prices are also affected by NAV performance, option income, market sentiment, underlying holdings, volatility and fund demand. So when I rotate into a fund with a strong NAV Delta score, there is a better chance that its price holds up better after the distribution or at least drops less than the dividend amount. That’s where the rotation (dividend capture) can create real additional income instead of just moving money around. In June, this dividend capture adds roughly C$1,000+ in extra dividend, something I would not have been able to monitor and execute efficiently without an AI agent tracking the data daily.

I decided to liquidate my OILK position and reinvest into HAKY and ECHI.TO and the main reason is because OILK latest dividend dropped below my income threshold. My rule for U.S. funds is around 1.5%/month and OILK latest payout no longer comes close.

Latest yield data:

- OILK: latest distribution $0.241, price $46.30, yield ~0.52%/month, fails my threshold.

- HAKY: latest distribution $0.462, price $29.91, yield ~1.54%/month, passes my threshold.

- ECHI.TO: latest distribution C$0.155, price C$11.90, raw yield ~1.30%/month, adjusted estimate ~1.50%/month, now attractive after the price drop.

Latest NAV Delta profile:

- OILK: 3M -14.65%, TTM +14.03%, SI -54.31%, score +5.43%

- HAKY: 3M +26.20%, TTM +19.82%, SI +19.82%, score +21.73%

- ECHI.TO: 3M -1.65%, TTM +19.14%, SI +19.14%, score +12.90%

For me, OILK no longer offers enough monthly income to justify the commodity-linked volatility and weak long-term NAV profile. I’m moving into HAKY for stronger NAV momentum and income above my U.S. threshold and ECHI.TO because the price decline pushed the yield higher while also giving me a more defensive exposure which I like in case of a market crash.

Like always, not financial advice, just sharing my income-focused portfolio move.

For context the 1% or less allocations may seem insignificant but combined either other 1% allocations and they combine to be a low beta portion of the account

So 1% in v is nothings

But combine 10 low holdings and its 10% lower beta than the rest of the account for down side “protection”

Sgov positions for buying a 20% crash

(Not shown but considering adding arcc and eggy) - would only BUY in a CRaSH

It wasn’t so long ago I celebrated the first 100 shares.
As of this AM, with BLOX being 15.94 in the pre-market, petty change beneath my average cost, I bought 10 more shares.

300 shares reached!! At a 15.99 average cost basis

OP: https://x.com/highyieldhustle/status/2070570291563020558?s=46

PC:
ROCQ +12.10%
ROCY +6.86%

JEPQ +5.05%
JEPI -1.25%

TR:
QQQ +19.73%
SPY +11.45%

ROCQ +14.46%
ROCY +8.64%
As of June 24,2026

the new funds from JP Morgan are outperforming the older funds so far.

ROCQ and ROCY use call option spreads, while JEPQ and JEPI use Equity-Linked Notes (ELNs) for a covered call-like strategy. Both maintain direct exposure to their underlying equities. ROCQ and ROCY distributions are primarily classified as Return of Capital (ROC).

This month’s income basket did exactly what I built it to do. I received dividends from:

- GLDI — ETRACS Gold Shares Covered Call ETN: 3.47% monthly yield on cost, basis $160.04

- TDAX — TDAQ Lift ETF: 1.90% monthly yield on cost, basis $24.59

- GPTY — YieldMax AI & Tech Portfolio Option Income ETF: 3.43% monthly yield on cost, basis $42.95

- SDTY — YieldMax S&P 500 0DTE Covered Call Strategy ETF: 1.88% monthly yield on cost, basis $44.67

- QDTY — YieldMax Nasdaq 100 0DTE Covered Call Strategy ETF: 2.24% monthly yield on cost, basis $40.93

- CHPY — YieldMax Semiconductor Portfolio Option Income ETF: 5.25% monthly yield on cost, basis $59.08

- YMAX — YieldMax Universe Fund of Option Income ETFs: 3.62% monthly yield on cost, basis $8.36

Weighted monthly yield equivalent on my cost basis: 3.32%

I hit my monthly reinvestment goal so instead of reinvesting this round I withdrew the dividends and used them to help pay bills. That is the part I care about most, the income is becoming real cash flow, not just numbers on a screen.

I know these funds are volatile with high monthly yield is not free money. NAV erosion, option strategy risk, sector risk and distribution cuts are all part of the game. Collect the income, hit the target and turn the distributions into actual household cash flow.