$358 From Non-Tech ETFs in 1 Month — Here's the Honest Breakdown

Welcome back.

Rico here—former tech executive who retired in 2023. This is where I share everything I’m doing in public: wins, losses, and the portfolio decisions behind building an income snowball.

And this update is part of a larger experiment.

A month ago, I added State Street sector-based premium income ETFs into my defensive bucket. The goal wasn’t to replace my tech exposure—it was to reduce concentration risk.

Because while I’m extremely bullish on tech, concentration risk doesn’t announce itself. It builds quietly.

So this is a small test: let the data speak before I scale anything.

Quick disclaimer: I’m not a financial advisor. This is for educational and entertainment purposes only. Always do your own research before investing.

Here’s the current lineup:

• XLI (Energy) — ~$8,700 invested

• XLU (Utilities) — ~$11,000 invested

• XLI (Industrials) — ~$6,700 invested

• XLBI (Materials) — ~$4,500 invested

• XLVI (Healthcare) — ~$800 (small starter position)

Total: ~$32,000 across five positions

Less than 4% of my portfolio.

These are test positions. Not conviction-sized allocations.

Energy is the standout performer so far.

• Cost basis: ~$26.74

• Current price: ~$27.12

• Gain: +$124 (~1.4%)

• Monthly distribution: ~$101.79

Total monthly return:

• ~$226 on $8,700

• ~2.6% total return in 30 days

Why is it working?

Energy is currently benefiting from:

• Geopolitical tension

• Supply constraints

• Strong oil demand backdrop

When the underlying sector moves upward, the covered call overlay amplifies income generation.

Right now, this is my strongest non-tech position.

Utilities tell a different story.

• Cost basis: ~$25.41

• Current price: ~$24.97

• Loss: -$218 (-1.8%)

• Monthly income: ~$121.66

So on paper, it’s red.

But in reality:

The income almost fully offsets the drawdown in just one month.

Utilities have been pressured by:

• Interest rate expectations

• Bond market volatility

• Sector rotation out of defensives

This is exactly the kind of position where price looks weak, but income carries the thesis.

Still, I’m watching it closely.

• Cost basis: ~$25.20

• Current price: ~$24.89

• Slight loss: ~-0.5%

• Monthly income: ~$71.16

This is the definition of a “boring but working” position.

No major price movement. No drama.

But the income is doing exactly what it’s supposed to do—generate consistent cash flow while I stay exposed to the sector.

• Cost basis: ~$24.25

• Current price: ~$24.20

• Loss: slightly under -1%

• Monthly income: ~$54.97

Materials have been soft across the board due to:

• Global demand uncertainty

• Trade and tariff noise

• Macro slowdown concerns

But again - the income story is intact.

If distributions continue at this level, income will likely erase the drawdown within a couple of months.

All positions combined this month:

• Energy: $101.79

• Utilities: $121.66

• Industrials: $71.16

• Materials: $54.97

• Healthcare: $8.59

Total: $358.17

On roughly $32,000 invested, that’s:

• ~1.1% monthly income

• ~13.4% annualized income rate (non-tech bucket)

Not explosive growth.

But consistent, diversified cash flow outside of tech exposure.

Here’s the honest breakdown:

• 3 out of 4 major positions are down on price

• All 4 are positive on income

That’s the tradeoff.

This bucket is not designed to outperform tech.

It exists for one reason:
non-tech income diversification inside a tech-heavy portfolio.

Right now, I’m not exiting anything.

I’m also not scaling aggressively.

Instead, I’m doing this:

• Keep positions small

• Let distributions accumulate

• Monitor price erosion over time

• Add selectively based on sector behavior

If energy continues outperforming, I may add.

If utilities weaken further but maintain yield stability, I may also add.

If healthcare shows signal, I’ll expand slowly.

But nothing changes yet.

This is still data collection mode.

This isn’t a finished strategy.

It’s an experiment.

Some positions are green. Some are red. But all of them are generating income.

And that’s the key point:

I’m not just tracking price movement.

I’m tracking whether the income justifies holding through volatility.

So far, the answer is mixed—but promising enough to continue observing.

Because in investing, especially income investing, clarity doesn’t come from theory.

It comes from months like this.