‘Dividend nomads’ fund life abroad with high-yield option ETFs (opens the source in a new tab)
- ‘Dividend nomads’ fund travel and cheap living abroad with ETF Exchange-traded fund: a basket of shares or bonds you can buy and sell like a single stock. that sell options to pay out monthly. Such derivative-income funds now hold more than $270bn, and many charge high fees.
- Jae Hyouk Jang quit his job to travel; when Coinbase fell, his YieldMax CONY fund lost nearly 40%, shrinking his payouts. He has moved to safer funds and is weighing remote work.
- Those who last keep yields modest and keep working: a couple in Portugal tops up JPMorgan’s JEPI income with farm work, and Kristy Shen and Bryce Leung grew their pot by freelancing and writing.
- $270bn+
- in derivative-income ETFs
- ~40%
- fall in one nomad’s fund
Why it matters Option-income funds trade future upside for cash today; as a paycheque, that works only while markets cooperate.
Other side YieldMax says most of its funds have produced attractive returns, and with low costs abroad and side income, a tamer income fund can work.