NOBL and SPY are unsurpassed. Which is better?

NOBL is the market symbol for the ProShares S&P 500 Dividend Aristocrats exchange-traded fund (ETF) composed of 57 U.S. companies that have paid an increasing annual dividend for 25 years or more.

Most are household names.  NOBL is a great widows and orphans security. They can receive regular, reliable quarterly checks over their entire lives and never have to look at their portfolios.  The steady, regular income takes the sting out of inevitable market drops. A 100% NOBL portfolio would be suitable for Monday Morning Program members who want to set it and forget it.

For Canadian Monday Morning Program members, it is obvious from the above chart why we recommend SPY, an ETF that mirrors the S&P 500, over recommending the Toronto Stock Exchange Index fund.

But why does the Monday Morning Program recommend SPY over NOBL? 

Primarily because SPY has a much higher volume derivatives trading than NOBL with more frequent expiry dates. We recommend that Monday Morning Program members only write (sell) and never buy derivatives and that they do so in their “fun” portfolios only.

Occasionally, they will encounter periods of outstanding premium returns during which times they can sell covered calls and cash-secured puts in a part or all of their core portfolios.

High premium returns occur when market volatility is high such as we see in the chart below.

We have such a period at this time.

On another note, at the Berkshire Hathaway annual meeting last Saturday, Warren Buffett again,  confirmed the wisdom of investing in the US market by owning SPY in our personally selected asset allocation. We at the Monday Morning Millionaire Program are clearly on the way.

 

Please note that the Monday Morning Millionaire Program contains opinions only. It does not provide any investment advice or endorsements.

 

 

Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me

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