SHOCKING New Changes to YieldMax (Retire Quicker?)
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- Опубліковано 7 лют 2025
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YieldMax announced some big changes to their monthly paying income ETFs. Let's go over these changes and how YieldMax may now pay weekly and also incorporating new strategies to avoid NAV erosion.
Disclaimer:This is not financial advice and I am not a licensed financial advisor. Always do your own research before investing and work with a licensed financial advisor. These are my opinions for informational purposes only and not to be taken as investing advice. Some of the links on this page are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. As an Amazon Associate, I earn from qualifying purchases. Affiliate commissions help fund videos like this one
What do you think of the new YieldMax ETF changes?
Talk with other Dividend Investors: discord.gg/AasPBy3Kky
The point is to actually use these as income. They are not supposed to be investments. So weekly distributions are welcome. All of you who are DRIPing these funds are doing a dumb play.
@@ZidaneSteiner I'm not sure that makes much sense - you are "investing" money in hopes their trading strategy works and that will hopefully provide income.
Got 500 YMAX. Use the distributions to buy long term quality dividend and growth plays.
All funds will still pay every 4 weeks instead of every month there will be 13 distribution a year instead of 12 if you own certain funds you'll get paid every week if you own regular single stock ETFs then you will get paid once a month.... and yes this is Decatur to those who want to get paid weekly for sure but it helps everyone that owns multiple funds they can get paid weekly
Except YMAX, YMAG, & ULTY are every week
You're right. Weekly VS Monthly, no difference other than cash flow. YMAX and YMAG are still pulling money from the single-derivative ETFs in their holdings like usual, and just dividing by however many weeks, paid on Friday. Whatever. The BIG news is introducing Call Spreads to mitigate or offset or reduce NAV erosion on the single derivative ETFs in the holdings which YMAX and YMAG pull from. Call spreads are just additional call option contracts at different strike prices. This is way more important than weekly payments. I'm wondering why not throw in a Put here and there? Big Big deal.
I agree with you. Thanks for the information.
Thanks man - enjoy the town hall tonight I see you in there
COTY, you know what's insane?
Some high-yield dividend warriors are currently paying high margin rates, which is fine.
But some of the high-yield dividend warriors are planning to pay down their margin loans after the FED lowers rates? If that is true, then I get the impression that they believe that when the general cost of borrowing money goes down, the best approach is to borrow less. Sounds strange...
Shouldn't the high-yield dividend warriors take advantage of low interest rates, borrow lots of money, buy lots of shares (plausibly at heavily discounted prices), and collect distributions until interest rate increases lead to increased margin loan rates?
Frugal J
I don't think they are going to lower the rates.
Wait, isn't that Cambodian guy margined like $80 k ?
That sounds about right lol
lol, yeah I think so. His title should be called The Fastest Way To Turn 100k into 3k lol
Ones they skip a payment people will leave the funds and Jay knows that. What’s the point of holding an asset when they not paying you and going down
The only reason an ETF wouldn't pay dividends as expected is because the Options Contracts w/Strikes lost and didn't make any money. How can a Fund pay a dividend if there's no money? On the other hand, the Fund would pay a dividend, but if there's no income from the Options Contracts w/Strikes then any dividend paid would come from Capital which drops your share price even further = a big loser and you should cut your loses and sell. It is what it is.
Listening to this “yield bro” content is better than Jerry Springer! 😂
Now they get to measure their under performance weekly instead of monthly, congratulations! These weekly income funds are the income investing community equivalent of the payday loans. Fund managers raking in the income on the backs of ignorant and irresponsible customers.
The funny thing is if any of these companies belly up during the NEXT CRASH, they will be blaming everyone else and demand the government for a Bail OUt lol
Have you seen Oracle's interview with Jay? It was a hoot.
Haha had it playing in the background at work today. All I heard was him talking over him and the one part about getting a snip as man....what an odd thing to say.
@@citizenoftheyearCC I don't think he understands that YM is the only company that doesn't hold back their premiums. He is asking them to be the same thing that other covered call funds are. Makes little sense to me.
With YM, you are at a high risk of NAV erosion. That's a fact. I love YM, but they are not going to be able to catch all of the upside and you are in for a world of hurt if you pick a fund with a bad underlying.
Anyone who buys YM needs to understand what they are getting. I actually liked Oracle's interview, but I am not sure that Oracle's community understands what they are buying when they buy into YM.
i will have to say, having 25 funds in single payment date do no good, if you know top 3 of the 25 funds pays the most, why would anyone get into the other 22 funds? keep in mind, the funds still pay monthly, its just now the funds spread into 4 different weeks and let the investors more options to buy into different funds, in which will increase their AUM.
Dude it makes a difference base it off the current yield and not the yield you feel you have to put in
There is no way these funds will be able to provide double digit distributions year in and year out. Need to be realistic.
These are sinking ships.
For example, CONY and MISTY performed well during their first year; however, they have been trading down over time. The Bitcoin halving event occurred, but there was very little movement in Bitcoin's price. If your investment depends on crypto "going to the moon," it isn't much of an investment to begin with. Without such a surge, CONY and MISTY will continue to erode. Sure, they might have a stock split, and some will say stock splits are a good thing, but they'll continue to tumble down.
Compare that with JEPQ, which grew 11% last year and paid above a 10% dividend yield. That is real juice-real firepower. It's unlikely that a single YieldMax can outproduce that growth on a portfolio matched dollar for dollar. Consider Lockheed Martin, which will pay out $12.00 per share this year and grow. That is real power and real money with no erosion.
By the way, these stocks have existed for years, which is why I don't understand the high-yield investing gambling that takes place. Joseph Carlson has grown his portfolio here on UA-cam in 5 to 7 years to over $700k, closing in on $800k, by buying solid American companies that grow and pay dividends. Unless Jay and these guys are writing new investing history before our very eyes, none of these people will produce those results-they'll probably lose money.
I only have cony and Msty right now. Each one makes up 1% of my Roth IRA. So 🤷🏻♂️I guess I prefer the stability . I
I understand - I view these more a speculative plays. Hard to have full portfolio in something so shaky
Yeah and they aren't stable. Instead of losing money why not put 1k into Applied Digital, or Rocket Lab, or Audrial when it goes public, or General Atom when it goes public one day. These already have government revenue floating in and are quickly on the rise, each one could easily give you 25k profit or more in the next 10 years, you'll never get that from Yeildmax. These companies are young and affordable and I have way more than them, but they are already on their way to 25 or 30 per share in 10 years and cheap today.
Great now the NAV will decrease 4x a month instead of once.
Lmao, yea now there’s basically 4 guaranteed times the NAV will drop
the prejudicial undertones in your voice are real in this one
I do my job of educating people why their plan to retire off a $80k portfolio all on margin is ridiculous.
I like different dates for payouts spread out throughout the month. I've always gotten paid weekly for every job I've had.
Yikes. Good Analysis. Have you considered getting into Comedy ? So much material is available. 😂
Now broke brotha in law can retire on $2 dollars portfolio with bunch of margin.
These warrioars aint retiring anytime soon lol
Weekly payouts only matter to those who have margin expense. I don't like Jay conceding to a small number of investors. This may cause investors to go in and out of these ETFs resulting lower long-term holders, in short chasing yields. I wouldn't buy YMAX or YMAG now.
Hello
😅not impressed with the changes
They did what they needed to appease the HYDB Warrioras. Does it really change the investment? Not really haha
Total Return is the answer and the first question you should ask for all of your portfolio. Cheers!
Of course that is very important for sure!
I'm a high yield dibadend investor (but not a warrior), and I agree with you here too. lol