Frequently Asked Questions

What is OppenFolio?

OppenFolio is a live, publicly-tracked portfolio experiment focused on high-yield ETF investing. It uses a barbell strategy with a protective shell of stable income-focused ETFs (like JEPI, PFFA, JAAA) and a reactive core of higher-risk, higher-yield positions (like TSLY, ULTY, NVDY).

The portfolio is managed through Python automation and all trades are executed with real capital through E*TRADE. Every trade is logged, timestamped, and made public for transparency.

Learn more about the strategy →

Is this financial advice?

No. OppenFolio is a personal investment experiment for educational purposes only.

The creator, Eric Lanz, is not a financial advisor and has no professional finance credentials. He is a software engineer applying engineering principles to portfolio management as a personal experiment.

All data and results are shared for informational purposes. You should consult with a qualified financial advisor before making any investment decisions.

What are the risks of this strategy?

This strategy involves substantial risk including:

• NAV Decay: Permanent price erosion in covered call and high-yield ETFs
• High Volatility: Reactive core holdings can decline 30%+ during market downturns
• Concentration Risk: Heavy allocation to specific ETF types
• Potential for Significant Losses: Some positions (like FIAT) resulted in realized losses
• Complexity: Managing high-yield positions requires active monitoring and risk management

During the April 2025 tech pullback, core positions fell more than 30%, though the total portfolio was down only about 12% due to the protective shell structure.

This is not a conservative strategy and is not suitable for all investors.

What is NAV decay?

NAV (Net Asset Value) decay refers to the gradual erosion of an ETF's price over time, common in covered call and high-yield strategies.

When an ETF pays out high dividends using options premium, the share price often declines because the dividends aren't covered by sustainable earnings growth. This means you receive income but your principal value decreases over time.

Example: A $10 ETF might pay $0.15/month in dividends (18% annual yield) but decline to $8.50 over a year. You collected $1.80 in dividends but lost $1.50 in price, netting +$0.30 total return (3%).

The OppenFolio strategy aims to collect more income than is lost to NAV decay through strategic position sizing and rotation.

Read more in the Glossary →

Can I replicate this portfolio?

Yes, all trades are publicly documented and the holdings are standard ETFs available through any broker. The trade history shows every purchase with exact dates, prices, and share counts.

However, replicating the strategy requires:

• Understanding the risks (see above)
• Appropriate risk tolerance for volatile positions
• Ability to manage and monitor positions regularly
• Comfort with potential losses

Recommendation: Start with the conservative holdings (Shell) only—VRP, PFFA, JAAA, TFLO, DIVO—and learn before adding volatile positions. You can toggle to "Conservative Mode" on the homepage to see just these stable holdings.

How much money do I need to start?

You can start with as little as $25-50. Many high-yield ETFs like TSLY and ULTY trade under $10 per share, and most brokers now offer commission-free trading and fractional shares.

OppenFolio itself started with small Apple Cash cashback amounts—literally $20-30/month in grocery cashback reinvested systematically.

However, to achieve meaningful monthly income goals:

• $100/month income: Typically requires $5,000-$10,000 invested
• $500/month income: Typically requires $30,000-$50,000 invested
• $1,000/month income: Typically requires $60,000-$80,000 invested

These are rough estimates assuming 12-15% average yield and accounting for NAV decay.

What broker should I use?

OppenFolio uses E*TRADE, but other excellent options include:

• Fidelity: Excellent research tools, good customer service
• Charles Schwab: Wide range of ETFs, good for larger portfolios
• Interactive Brokers: Best for API access and automation
• Robinhood: Simple mobile interface, fractional shares

Look for these features:

• ✓ Commission-free ETF trading
• ✓ Fractional shares support
• ✓ Reliable API access (if you want automation)
• ✓ Good mobile apps for monitoring
• ✓ Real-time data and alerts

Most major brokers now offer these features.

Who is this strategy for?

This strategy IS for:

• Experienced investors who understand volatility and risk
• Those who have emergency funds and retirement savings already in place
• Investors comfortable with potential losses in exchange for monthly income
• People interested in experimental approaches to dividend investing
• Those who can tolerate seeing 20-30% declines in volatile positions

This strategy is NOT for:

• Beginners to investing
• Risk-averse investors or those nearing retirement
• Anyone who needs their principal preserved
• Those who cannot afford losses
• Investors who get emotionally stressed by portfolio declines

What is the difference between Conservative and Complete mode?

The homepage offers two viewing modes accessible via the toggle button in the bottom-right:

Conservative Mode (Default):

• Shows only stable, lower-volatility holdings (the protective Shell)
• Includes moderate holdings like JEPI and JEPQ
• Excludes aggressive NAV-decaying positions
• Provides a clearer picture of the portfolio's stable income base

Complete Mode:

• Shows the full portfolio including all volatile, high-risk positions
• Includes ULTY, NVDY, TSLY, YMAX, MSTY, CONY, PLTY, USOY, CRSH, MRNY, SVOL, and others
• Shows the full experimental "reactor core" strategy

Conservative mode defaults first to present the portfolio's stable foundation before showing the experimental holdings. This promotes responsible presentation of financial information.

Learn more about the two modes →

How often should I rebalance?

OppenFolio uses automated triggers based on position drift from target allocations, typically rebalancing monthly or when positions exceed tolerance bands (usually ±20% from target).

For individual investors:

• Quarterly rebalancing is often sufficient for most portfolios
• Monthly checks if you have volatile positions
• Trigger-based (when drift exceeds tolerance) is more efficient than calendar-based

The key is having systematic rules rather than emotional reactions to market moves. Write down your rebalancing criteria in advance and stick to them.