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Started By
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YieldMax ETFs
Posted on 2/18/25 at 9:56 am
Posted on 2/18/25 at 9:56 am
Does anyone have any experience with these? Instead of directly holding the stock, the ETF uses options strategies to generate income which pays out a monthly dividend. A guy I work with has done really well recently but it seems too good to be true. Thoughts?
6
Posted on 2/18/25 at 11:16 am to Tigerb869
I'm holding positions of YieldMax in my portfolio right now. I started transitioning to this because of the volatility of the market right now. I got my first dividend check last month and did very well. I was surprised with the payout. My goal is to grow my YieldMax to a larger percentage in my portfolio throughout the year. YieldMax might not be for everyone, but it works for me and my current strategy.
Posted on 2/18/25 at 12:00 pm to Hammond Tiger Fan
Which Fund are you in?
Posted on 2/18/25 at 12:36 pm to Tigerb869
Yes. Ym is a part of my portfolio. Has been for 6 months or so.
The difference with the pay outbid strictly based on how well they do on their synthetic positions. They are backed by bonds...etc. some of their fund are billions.
I get paid dividends from these every week. I use the dividends to average down on some that has lost value.
Example, I used my dividend from SMCY today to purchase more YBIT and NVDY. Both are down and SMCY is green for me.
Edit: there are other companies jumping in to this model. Defiant is launching one on 0DTE.
The difference with the pay outbid strictly based on how well they do on their synthetic positions. They are backed by bonds...etc. some of their fund are billions.
I get paid dividends from these every week. I use the dividends to average down on some that has lost value.
Example, I used my dividend from SMCY today to purchase more YBIT and NVDY. Both are down and SMCY is green for me.
Edit: there are other companies jumping in to this model. Defiant is launching one on 0DTE.
This post was edited on 2/18/25 at 12:37 pm
Posted on 2/18/25 at 1:44 pm to Tigerb869
Posted on 2/18/25 at 4:33 pm to Tigerb869
quote:
Which Fund are you in?
I'm only in two. CONY and NVDY.
Posted on 2/18/25 at 5:57 pm to Hammond Tiger Fan
I'm in 8 of them
Posted on 2/19/25 at 10:07 am to Tigerb869
Someone's been on Reddit...
Posted on 2/19/25 at 11:23 am to Jjdoc
quote:
Yes. Ym is a part of my portfolio. Has been for 6 months or so.
Would you mind elaborating on how you use these in your portfolio?
It looks like the NAV is declining over time, and the high distributions are income from the options. There is no return of capital but it looks like the capital is eroding over time, kind of rapidly, which seems like it could be that the actual trading expenses, which are not reflected in the expense ratio, are eating away at the capital.
How do you see it working in your portfolio?
This post was edited on 2/19/25 at 12:53 pm
Posted on 2/19/25 at 11:39 am to CharlesUFarley
I actually took a flier on these in the past few weeks. I hit my coast fire numbers; which I still regularly contribute to. I wanted to get a bit outside of my TradFi, Boglehead mindset.
I went heavy'ish into MSTY, CONY, and YMAG. Then I probably gained a better understanding of NAV erosion, these things' halving potential (although only one has), and shifted to KURV which seems to give really nice distros but also seems to place a higher value on NAV preservation. They also yield more ROC than YieldMax, so it should lessen my tax burden.
YieldMax Share
MSTY 500
CONY 200
YMAG 193
Kurv Share
GOOP 52
TSLP 117
NFLP 0 but on my watchlist. Need a payer for the 27th week.
Cash'ish
SGOV 101
I bought about $6,000 on margin. I plan to drip all of these for six months and then pay the margin down. Then my plan will be something to the effect of Drip one month, cash one month, taxes one month.
I went heavy'ish into MSTY, CONY, and YMAG. Then I probably gained a better understanding of NAV erosion, these things' halving potential (although only one has), and shifted to KURV which seems to give really nice distros but also seems to place a higher value on NAV preservation. They also yield more ROC than YieldMax, so it should lessen my tax burden.
YieldMax Share
MSTY 500
CONY 200
YMAG 193
Kurv Share
GOOP 52
TSLP 117
NFLP 0 but on my watchlist. Need a payer for the 27th week.
Cash'ish
SGOV 101
I bought about $6,000 on margin. I plan to drip all of these for six months and then pay the margin down. Then my plan will be something to the effect of Drip one month, cash one month, taxes one month.
This post was edited on 2/19/25 at 11:42 am
Posted on 2/19/25 at 12:19 pm to Tigerb869
I was in NVDY (YieldMax NVDA Option Income Strategy ETF) for a while. Yeah, high yield, but significant decline in Net Asset Value (NAV).
Eventually sold in favor of other high yield ETFs such as JEPQ, SPYI for that portion of the portfolio. Considering QQQI because of yield and classification of dividend (i.e. Return on Capital).
Eventually sold in favor of other high yield ETFs such as JEPQ, SPYI for that portion of the portfolio. Considering QQQI because of yield and classification of dividend (i.e. Return on Capital).
Posted on 2/19/25 at 1:13 pm to Tigerb869
This looks like a new spin on the leveraged ETFs that were popular around these parts during the pandemic. It would be interesting to get an update from those posters about how they ultimately fared.
I sat the round out because not only did you need to pick the right horse, you had to also constantly worry about the impacts of time decay.
I sat the round out because not only did you need to pick the right horse, you had to also constantly worry about the impacts of time decay.
Posted on 2/19/25 at 1:40 pm to Nole Man
Kurv has a KQQQ now. About 6-7% yield. Might check it out, if you're looking.
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