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IGA vs. SPY
Back in November of last year, I wrote an article proposing IGA as an alternative to investing in SPY. The main basis of the thesis was that the U.S. market faced a number of risks, while
Playing Defense - SPY Vs. IGA, A Reprise
Summary
- SPY faces significant risks, including high valuations, tech concentration, geopolitical issues, and the potential for a 'lost decade' with modest returns.
- IGA offers a conservative alternative with lower exposure to tech, defensive value stocks, international diversification, and a 10.49% yield via covered calls.
- Despite market volatility, IGA has outperformed SPY, showing only a 1% loss compared to SPY's 10% drop, proving its defensive strength.
- Given the current economic outlook and elevated VIX, IGA remains a top choice for future investments, with strong returns from its covered call strategy even in a flat market.
The author has an honours degree in economics and politics with a focus on economic development. With 36 years of experience in executive management he has extensive knowledge of insurance/reinsurance, Global and Asia Pacific markets, climate change and ESG. He invests in his personal capacity.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of IGA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The author is not an investment advisor and offers no advice here. He shares his own analysis solely for the interest of readers.
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