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Since June….I sold QQQI, reduced my allocation to IDVO, and shifted more capital toward GPIQ and other holdings. The current Top 10 yields now range from roughly 7% to almost 16%, but the goal remains the same: build a diversified portfolio capable of producing reliable income, without depending on one asset class.
GPIX & GPIQ – Income With Growth
GPIX currently yields around 8% and remains one of my favorite S&P 500 income funds. Goldman Sachs adjusts its option coverage between roughly 25% and 75% of the portfolio, allowing the fund to balance income with upside participation. Since inception, that approach has helped GPIX outperform several higher-yield competitors.
GPIQ applies a similar strategy to the Nasdaq-100 and yields just under 10%. Its higher-volatility benchmark generates larger option premiums, while its distributions have generally increased alongside the portfolio value.
Since June, I swapped QQQI for GPIQ. The decision came down to current income versus total return, and a yield near 10% is enough for me when the total-return record is stronger.
CEFS & NIHI – Diversification Matters
CEFS yields only 7.1%, below my usual 8% target, but it earns its place through diversification. The fund owns around 80 closed-end funds spanning technology, private placements, credit, precious metals, utilities, energy, and international assets.
That diversification has produced shallower drawdowns while still delivering competitive long-term returns.
NIHI adds another layer of diversification. It uses covered calls on IEFA, providing exposure to more than 2,500 stocks outside the U.S. and Canada while boosting the underlying index’s yield to around 10%.
ARCC, PFFA & PBDC – More Stable Income Sources
ARCC remains one of my core BDC holdings. Its share price has been affected by negative sentiment surrounding private credit, but the income record remains impressive.
PFFA adds exposure to almost 200 preferred stocks and yields just under 10%. Unlike covered call funds, its distributions are not directly tied to the fund’s market price.
PBDC provides diversified BDC exposure and currently yields almost 11%. I still prefer its actively managed approach over the older BIZD index fund.
KGLD, QDVO & FSCO
KGLD provides exposure to the price of gold. Its yield is currently in the mid-teens, although I assume that will fluctuate. What matters more is its ability to keep pace with gold while converting some of gold’s volatility into income.
QDVO remains my concentrated technology-income holding, while FSCO has returned to the Top 10 after I reduced IDVO. FSCO currently yields about 13.9%, but its NAV has been far steadier than its market price.
My Take
These holdings are not meant to be copied as a model portfolio. They are a menu of ideas for generating a diversified income stream.
The Top 10 largest allocations remain around 4%–5%, and the full portfolio adds another 26 holdings and currently yields about 10.9%.
The holdings will continue to change, but the objective will not: diversified, sustainable income.
To learn more, click here for the full Review.
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