Investing for My Grandniece Using eTrade’s Automatic Investment Plans
One of the most fulfilling things I do as an investor is contribute regularly to my grandniece’s future. It’s a gift, and like most gifts that mature with time, I want it to be thoughtful and sustainable. That’s why I use eTrade’s Automatic Investment Plans. It’s simple, it’s consistent, and it leverages the very tool I’ve trusted since the dawn of online investing.
Those of us who remember the early days of eTrade know what a game-changer it was. Before that, you had to call your broker, place an order over the phone, and coordinate transfers that took days, not seconds. The cost of buying a stock could eat into your expected return. Today? It’s a few clicks, often commission-free, and instant execution. That change—from manual to automatic—is part of what makes regular, fractional investing so powerful for the next generation.
When it comes to buying for my grandniece, I want value and probability, not just performance headlines. I don’t like buying at all-time highs or even 52-week highs. My logic is fairly simple: Don’t chase, and don’t guess—measure.
📊 A Probability-Based Strategy for Long-Term Growth
I built a system called MAS (Medeiros Alpha Strategy) to help me automate much of my decision-making. It retrieves current and historical prices, calculates Standard Deviation, and displays the 30-, 90-, 120-, and 200-Day Moving Averages for any stock or ETF I want to track. It also gives me Dividend Yield, which is crucial when buying assets designed for passive income instead of active trading.
When investing for my grandniece, I think of both types of assets:
📈 Looking at some of the Numbers
Moving Averages for QQQ (Invesco QQQ Trust – Tech Growth ETF):
📉 QQQ is trading well below all key moving averages, suggesting a potential buying opportunity for long-term investors. But it also reflects recent pullbacks—likely tied to market-wide tech weakness and tariff concerns. For those who seek capital appreciation, this could be a strong value zone if your horizon is 5–10 years or more.
Moving Averages for QYLD (Global X NASDAQ 100 Covered Call ETF – Monthly Income):
📉 QYLD, like QQQ, is trading at a notable discount to its average pricing. But unlike QQQ, QYLD is not designed for growth. It’s an income-focused ETF that sells covered calls on Nasdaq-100 stocks and pays a high monthly dividend. Perfect for a portfolio where cash flow matters, even if the price appreciation is capped.
📈 Dividends, the Passive Income Opportunities
When it comes to dividends, the contrast between QQQ and QYLD is stark:
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QQQ offers a modest 0.64% yield, paying approximately $0.716 per share on a quarterly basis. It’s primarily a growth-focused ETF, so the dividend is more of a bonus than a central feature.
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QYLD, on the other hand, is built for income. With a substantial 13.63% yield, it distributes around $0.17 per share every month, making it a compelling choice for passive income seekers.
Whether you want small quarterly rewards with big growth potential or steady monthly payouts, each ETF serves a unique financial purpose.
🧠 Growth vs. Income: How I Haven't Decided
For my grandniece’s investment:
If the market keeps pulling back and I’m looking at long-term growth, QQQ (or VOO) will be my preferred play.
If I want to set up a slow-drip income channel and reinvest dividends, then QYLD or JEPI become ideal.
🎯 Standard Deviation and Probability: A Sharper Look at QQQ vs. QYLD
To support my decision-making, I lean on math—not moods. One of the most underutilized but insightful metrics I use is Standard Deviation (StDv). It helps me measure the probability of price movement—not just direction, but the range in which a stock or ETF is likely to trade based on historical volatility.
Here’s what my MAS (Medeiros Alpha Strategy) terminal reported:
📊 QQQ (Invesco QQQ Trust – Tech Growth ETF)
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Current Price: $422.67
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30-Day StDv: $19.32 (±4.57%)
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90-Day StDv: $22.42 (±5.3%)
📊 QYLD (Global X NASDAQ 100 Covered Call ETF – Income ETF)
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Current Price: $15.21
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30-Day StDv: $0.58 (±3.81%)
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90-Day StDv: $0.62 (±4.08%)
These numbers tell a straightforward story:
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QQQ has a higher range of potential price swings, which means greater opportunity—but also greater risk.
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QYLD shows tighter, more stable price movement, paired with a 13.63% dividend yield paid monthly, offering reliable passive income.
It’s worth noting:
📉 Beta is another commonly cited measure of volatility—comparing an asset’s movement to the overall market. But unlike Beta, which is a relative measure, Standard Deviation gives me an absolute sense of range, helping me set realistic targets and expectations for price action.
Why I Favor Income Over “Selling High”
Here’s the part that many overlook: in order to capitalize on growth from something like QQQ, you must sell it. That sale creates a taxable event, and depending on your timing, you may miss the optimal exit altogether. Timing the market is not easy—and I think that needs to be emphasized, especially in a public post like this. Frankly, I find comparing it to gambling to be accurate.
But as a New Jersey-born investor, I’ll say this: I’d much rather try to time when to buy and sell Apple (AAPL) than try to guess what card is coming next in a poker game. At least with investing, I can run the math, look at patterns, and rely on probabilities. You don’t get that kind of edge with a deck of cards. So the comparison isn't, "True".
Back to the opportunities and course of action: On the other hand, QYLD lets me collect consistent income without needing to sell. It aligns with the way I invest—slow, steady, and focused on building rather than betting.
My Takeaway
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QQQ may rise more, but it also falls more.
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QYLD may not soar, but it pays me to wait.
So in this case, I’m choosing balance: I’m splitting the allocation between the two logics. I want exposure to upside potential, but I also want the comfort of reliable cash flow—especially during uncertain times when volatility is more likely to increase, not decrease.
📚 Works Cited:
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Invesco QQQ Trust (QQQ) Price & Averages: Yahoo Finance, April 5, 2025
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Global X NASDAQ 100 Covered Call ETF (QYLD) Data: Global X ETFs, Yahoo Finance
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"Watch These QQQ Price Levels as Nasdaq 100 Fund Slumps on Tariff Fears" – Investopedia, April 2025
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"Are JEPI and QYLD Too Good to Be True?" – Reddit ETF Community, April 2025
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MAS Strategy Data Outputs – Medeiros Alpha Strategy (Private Python System)
📌 Disclaimer
This is not investment advice. I am not a licensed financial advisor. The content in this blog post represents my personal thoughts, interpretations, and the course of action I’ve chosen based on my understanding of the current market landscape. It is intended for record-keeping and discussion purposes only.
I believe tariffs are a more appropriate mechanism than income taxes to balance the federal budget. I also disagree with protest movements that demand increased government spending, especially when such spending is not aligned with the will of the majority. In my view, panic-driven behavior may accelerate a market downturn, as more individuals begin to liquidate investments out of fear.
Everyone’s financial situation is different. Please do your own research or consult with a certified financial advisor before making investment decisions.
