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How to Create Warren Buffett’s 90/10 Portfolio, But With an 11% Yield
['Tony Dong', 'July', 'Min Read']
Yahoo Finance
Quick ReadSame allocation, different objective: This portfolio keeps Buffett's 90/10 stock-and-cash framework while emphasizing high income instead of capital appreciation.
Buffett instructed that 90% of his estate be placed in a low-cost S&P 500 index fund and the remaining 10% in short-term U.S. Treasury bills after his death.
NEOS S&P 500 High Income ETF (SPYI)The NEOS S&P 500 High Income ETF (SPYI) serves as the portfolio's equity allocation.
Rather than simply owning the S&P 500, SPYI combines a portfolio of large-cap U.S. stocks with an actively managed options strategy that both buys and sells SPX index options.
Using index options instead of options on individual ETFs creates several potential tax advantages within the fund.