You worked decades to build your nest egg. One misleading ETF — paying you back your own money while you watch the NAV decline — can undo years of compounding. This guide teaches you exactly how to tell the difference.
Many high-yield ETFs are simply returning your own principal. The yield looks real. The portfolio balance tells the true story.
Erosion happens slowly. By the time it's obvious, a $100K position can be worth $70K — while still paying distributions.
In retirement, a major drawdown in year 2 is catastrophically different from one in year 20. Yield traps strike at the worst possible moment.
Chapters marked Most Relevant are specifically applicable to your situation.
A systematic framework for classifying any income ETF from Cornerstone (Tier 1) to High Octane (Tier 5).
The 6 structural signals that separate sustainable income from return-of-capital illusions.
How distributions exceeding earnings gradually destroy principal — with real ETF case studies.
How to read a fund's distribution coverage ratio and what thresholds signal danger.
Real ETFs analyzed: which ones are yield traps, which are sustainable, and why.
A printable checklist to evaluate any dividend ETF in under 30 seconds.
A deep-dive due diligence process for any ETF you're considering adding to your portfolio.
How to combine tiers for your specific income goal — conservative to aggressive allocation models.
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High-yield ETFs analyzed showed meaningful NAV erosion over 24 months — many while continuing to advertise their "high yields."
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