Why I Don’t Invest in YieldMax ETFs - Passing on Huge Dividends
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- Опубліковано 1 жов 2024
- My Portfolio: / dividendbull
When I first started my channel back in 2020, I had two main goals in mind. I wanted to analyze all of the major high yielding investment types that exist, since I’m primarily an income investor. But I also wanted to every now and then share my own journey as someone aiming to build up a massive income stream through dividends, which is likely what you’re in the process of doing. Throughout the years we’ve seen a lot of new investments launch that are designed to offer exceptionally high dividend yields, which is really encouraging for people like us.
But one of these new investment types that’s launched more recently are synthetic covered call funds. And this is a strategy that I’ve only seen utilized by YieldMax. These synthetic covered call funds offer the highest dividend yields out of anything you can find on any stock exchange. And often I’m asked by people, both here on UA-cam as well as over on Patreon, why I don’t personally own any YieldMax funds if I really am an income investor that’s focused on high income from my portfolio.
I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A balanced portfolio ideally includes a mix of both type. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.
Dividends are great. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important.
I agree. Drawing from my own experience with a CFA, I have amassed ~$1 million in a well diversified portfolio that has seen exponential growth. I got ~$48800 divs last year in taxable divs. Q2 taxable divs was ~$17k this year. Investing in stocks requires not just capital but also knowledge, perseverance, and a steadfast approach.
Congrats! I’m trying to get an advlsor for guidance but it’s harder than you think. Anyone who is fee-based is hard to find and usually have a heavy workload. Would you be comfortable sharing a recommendation if it’s not too much trouble
Oh very well then, conducting due diligence on Lina Dineikeine should suffice. She has established a notable reputation over time, and her system is acclaimed for its outstanding quality. Good woman!
Ah gotcha. I looked up her name on Google. Found her website. I must say her credentials are truly impressive! Good enough to lay any doubts to rest. I popped her an email.
If you were in NVDY for 10 months you got all your money back in dividends after that it's free money you are playing with so risk can be higher.
I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or when ever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Impressive can you share more info?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
The S&P 500 finished down 20% in 2022. This means long term investors have a great starting point in 2023. Here are 4 very popular ETF’s: $VOO- S&P 500 fund $VTI- Total US stock market $QQQ- High growth, tech $SCHD- Growth + Dividends| I just tallied my dividends for the year;$167k Blessed and grateful, disciplined and focused.
My "boring" index funds just paid me over $6,000 in dividends last month. This is money that i can choose to spend without having to sell any of my shares. But for now i have it all set to reinvest to buy me even more index funds.
That's awesome! Diversifying your 350K portfolio with the help of an investment coach has really paid off. Making over $730k in net profit from high dividend yield stocks, ETFs, and bonds is quite impressive. Your investment strategy seems to be working wonders for you!
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
I love your channel, but everyone is missing the point with these products! These are designed for income. You can reinvest the distribution for compounding purposes or you don’t. Regardless, depending on the stock choice the distribution will pay itself off in 24 months or less. At that point everything received is house money and it doesn’t matter what the Nav does. It can go down, they can reverse split and it doesn’t matter because you’ve already received your initial back.
I agree. I have a spreadsheet to show how long I will get to zero risk based on the symbol. getting to zero risk is my goal and then will be ok with what ever happens after that.
make sure to include taxes in the rate of return. It may dramatically change payback date. 24 months on Wall Street can be a lifetime. Many people haven’t seen a 1987 or 2000 or 2008. The risk is very real I can assure you. I can’t tell you when it will happen or how only it has happened in the past.
@@brianfruman123 very valid concerns. In my last Job HR came through with a way of thinking I was not used to. They said as you get closer to retirement set aside 5 years of liquid options to live on (in case of a 2008 scenario) and the rest can be more risk investments as history proves that the years you talk about (which I witness each time), that with time the market recovers from any crash. And you have a good point in the so many people have only seen incredible growths in the market and do not know down or sideway action. Mr Market is planning for the next crash to cause as much pain to as many people as possible. We will not know when but it will come.
I have Jepq, Nvdy, Cony, Msty, Ymax, qqq, and fselx. Im up 30k for the year. I then use 50% to reinvest and 50% into the actual underlying. Thank you, nvidia 10 for 1 split
I admit to mixed feelings about the YieldMax funds. I think the most important part is to understand what they are, how they work, and where they might (or might not) fit into your portfolio.
Right now, I have small positions in YMAX and NVDY, but I'm treating them as shorter-term cash flow generation vehicles than buy and hold. Of course, if they continue to perform, I'll keep holding. But "set and forget" retirement assets? Nope.
For retirement assets we all want those blue chip and etfs.
I don’t think you understand how this product works. The CEO even stated in his interview that these are not stay and park funds you need to manage them and DCA into them consistently in order for these to work properly in creating sustainable income.
Lol
My dividend journey began when I realized that two particular expenses in my budget were always going to go up and never go down. The two expenses were taxes and insurance. I realized that the dramatic rise in both will need some added income. So, I started buying shares paying dividends. I can now see that this will be the path I need to take to make sure those two expenses will not overtake my future income.
As a beginner, educate yourself, Learn the basics of investing and the stock market. There are many resources available online, including books, articles, and online courses. It’s a good idea to diversify your portfolio across different stocks and sectors to minimize risk. I’ve heard of people accruing over $550k during recessions and inflation, its important to do your own research.
Yes, I've been in constant touch with a Financial Analyst for approximately 8 months. You know, these days it's really easy to buy into trending stocks, but the task is determining when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. Can’t say I regret it, I’m 40% up in profits just in 5months with my initial capital of $160k
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
I have noticed share price in these Yield Max funds are constantly eroding. Many are decreasing their dividends. Not good.
I've had AMZY since the beginning, not bad.
Nvdy Ive done ok for now.
Amzy and cony have been really good for me, huge dividends and capital appreciation.
@@christmas10023 you can say for now about every stock created
@@mrjsanchez1and now?
I've heard that index funds and ETFs provide diversified stock market exposure while spreading risk. I have over $800K in savings; What's the most effective strategy to allocate funds in my portfolio and generate profits?
Yes, there are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
May I know the name of the advsor who has been assisting you, please?
She's known as ‘LAUREN MARIE EHLERS’. One of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
Thank you for this amazing tip. I just looked the name up, wrote her explaining my financial market goals and scheduled a call
I have gained much through Yieldmax Etfs since last year. I admit they can be unstable but regarding TSLY I'd rather be in an unstable 51.31% dividend yield than in a stable 6% yield. Besides, we cannot judge much anything that has not been 10 years in existence yet, and somehow the management is not that idiotic-sounding. I am sure at least one person in those financial management companies is also being careful. Anyway, let's wait and see a little longer. As a stock market investor, I am not primarily for stability or security. Otherwise, I'd be in bonds or money market.
Yieldmax funds: Keep an active eye on the funds, ride the wave as long as possible and then switch when things start to change.
Yeah, that's what I did. Bought a few shares of NVDY last year and after the next dividend half of my shares are paid for from the dividends. I'm not doing drip on them... didn't wanna gamble that much haha
And it’s still going ? Smart move on your end huh lol
@@kenpachizaraki8509 way to rub it in, lol i did the same thing with cony.. got $700 divs and turn around and sold for $500.. profit nicely... i can still get in..
If you get a $1,000 dividend and over the next week or two the share price drops by $4,000 how .much did the dividend help you. It cost you $3,000 out of your pocket.
YieldMax ETF's are great for anyone that wants to lose capital quickly. Bought a few MSTY shares out of curiousity last month and shares are down almost 30%, whatever yield it pays will never make it worthwhile.
YMAG, NVDY, AMZY and FBY are good bets.
One possible way to accept the non-diversification of Yield Max is to limit the percentage it might be in your total portfolio. I'm going to buy YMAX but it will only be 5% max of the total value of my portfolio. I'm 77yo and not interested in anything but income. To each, their own.
I'm only doing ymax. All of them in one fund
I hope you're hedging your position. You could use CRSH which is Yieldsmax but short on Tesla.
ymag is better stop just looking a distro rates
I personally like ymax better because of the number of funds in it vs just 7. Despite how good those companies are @@DerivCapital
@@DerivCapital What makes it better? Asking for a friend.
@@Sue_D_Nymn all ppl look at is dirsto and diversification is a JOKE else everyone would just buy VT which is every stock in the world lol its like betting on all the number on the roulette wheel its a joke,...YMAG recovers after evry dividend pay out or at least it recovers much much better than Ymax does and you want etfs that recover 50% to 100%+ so you dont experience nav erosion plus you can hedge ymag much easier its almost impossible to hedge ymax and as they add to ymax it will continue to become more impossible to add to it
...the weighting in Ymag is better you get way more NVDY in Ymag than you do in ymax after a crash the first stocks to recover you already know are going to me msft aaple nvda etc the fact tha most ppl investing in yeildmax have no idea wtf they are doing should also tell you ymax is what 2 or 3
times more popular than ymag which says the crowd is dumb dont follow the crowd i can go on but like i said YMAG is better everyone in cony n msty etc yet the best fund they have is AMZY !?!? only recently has a couple ppl started to figure that out but no one was investing in amzy
We bought 50 shares of Nvdy at 24.44 May 1.. collected that massive div and the shares are up to 28 now. Not sure if I’ll buy more until the Nvda split
Need to buy more $nvdy on ExDate June 6 .... June 7th $ Nvda stock splits ...fyi
@@sicarguy4478 I’m still 50/50 since I will just roll all divs into svol from Nvdy
Sounds like you just want to be safe and thats ok , but there's nothing there at safe. Yieldmax has changed my life , i no longer need to work 🎉🎉
Do you invest into Roundhill and Defiance ETFs as well?
@@Penelope416 No
Wait, do you think cryptocurrency will crash? I don't think so. I'm using Eledator, traders just do business instead of me :) I don't afraid even if crypto will crash
Great video. Even the ETF manager says these ETFs are not for living off of. Meant as hedge for the main stock and high short term income.
Thanks for your comment. Would you be able to direct me to where you saw the ETF manager statements? Thanks in advance?
YieldMax funds are good for super charging your income now to help build up your div position in other stocks. If you put in 2K then once it grows big enough to take out your initial investment then its no problem you are only spending profits at that point and reinvesting profits. It helps to speed up everything use it while it last not gonna be around for 30 to 50 years we all know that much.
A Lot Of People On Here Right Now Won't Be Around 40 Years From Now.
Good point…just keep track of the total value of each fund…then use some of the income I’m personally using 25% of my dividends to purchase others etfs and reinvesting the rest …
who knows what will be around nobody thought QYLD would be around
Look at the stock chart on any of these. You would have lost far more in share price than gained in the dividend.
There's Ymax and its been doung good. I have a large position on it and its been my best decision
I use the proceeds from the yield Max funds to fund my other dividend stocks in my portfolios.... Basically I'm just going to milk the golden calf until it's not the golden calf anymore and I'll go to something else but you can't ignore the profits that you can get focusing on yield Max and just distribute those gains throughout your portfolio❤
Agreed. These funds are really just a catalyst to growing more credible stocks and stable ETFs.
My ymax goal is to build it up then buy more stable income funds with those high dividends.
Great way to slow progress.
@@KO-gj9ug Hi, how so? If you could explain would be appreciated
Don't listen to haters.
That's actually a good strategy for you. Let YIELDMAX pay for your more long-term/stable funds.
Good luck!
@@BeDangerousGroup I'm not being a hater, it just mathematically a drag on his performance. It'd be better to just invest directly into those positions. YMAX ETFs have poor overall performance
@@KO-gj9ug Depends. 118% return on NVDY, if NVDA tanks you have made capital gains and do not take that drawdown. You've made your money, the initial investment is paid off. I'd rather have a steady income.
Another solid video Alan. Your insights inspire many to consider what's possible when it comes to retiring early with dividends. At the end of the day, we all have to decide how much risk we can tolerate. With the exception of TSLY, I've been very pleased with all my YM and Def funds. The monthly payouts have all tripled and in some cases, more than quadrupled the paper losses for the year. NVDY, CONY and MFSO are currently green on top of DIV yields of 30-100%. I hope we all make big money this year. It's an exciting time as this Bull market charges forward.
You ain't lying .Last year made 7-8k per month .now 23-25 k per month
@@Nicogambino2 You're growing like a beast! My goal is 10k monthly by December - skies the limit!
What do you think of MSTY?
Thank you for your research. I find your videos are well done. RIght now I'm keeping an eye on Eledator
Once again the small minded dont buy yieldmax funds because of TSLY , YMAX fund is the absolute best dividend/income investment on the market , so far it up 4.5% on nav and pays 44% annual yield !!!!
This. And although it’s only 20 companies but it’s the companies that move the S and P.
MSFO is DOWN 10% in last 60 days - bad investment and no information from YieldMax
I’d be curious for you to review KURV funds, which try to balance covered call yield while also capturing some upside.
Agreed! Kurv investments have very very high yields and they seem to maintain their NAVs even going up some in value. If you could at some point review these KURV funds that would be great!
Doesn't really matter Tsly is actually the worst case scenario after year or two you make back your investment whether or not it went up or down with the release of multiple single stock etfs by YieldMax you sort of create your own "high yield basket" which you can use to reinvest or invest any other dividend funds.
let me ask you a question... if it took you 2 years to make back your money, that means for 2 years you were red.. after 2 years Youa are now break even. its like you did nothing for 2 years... if i have 100000 same as if i was invested in YM, i put that in money market, i get back $14K in 2 years while you broke even..?
@@josephsaeteurn9158 Well don't invest 100k ever into something you don't believe in. If you buy in one of these with 2-3k at it trends down the whole year maybe it wasn't a great idea. (Like $Klip)
But if you invest in say $nvdy which is currently paying 100% that is on top of what you bought.
You like hypotheticals 100% yield on cost means your 100k would be 200k. Minus tax of course. Yes a bit over 10k a month?
Even if your risk tolerance is a lot lower or worried these funds will get slaughtered on a bear market. You could go $clm or $gof and get 16-18%
@@josephsaeteurn9158 at the end you have 14k, and that would be around 18-20% return (which is already insane), while the 10k invested 2 years ago into TSLY (worst case) would be worth 4k. However, you have made 10k in dividends, so also worth 14k overall, except you still have the ~250 shares of TSLY still paying you the high yield. If you DCA, the results are kind of insane even when the “price” is dropping.
Just ymax ! And reinvest the dividend 🎉
Agreed that almost all (if not all) YieldMax funds appear to focus entirely on income and do not care about NAV erosion and have done (and will continue to do) reverse splits when the price gets too low. When it comes to their diversified ETFs, their two best are OARK (synthetic for ARKK's current 38 stock holding ETF) and ULTY (synthetic for high Implied Volatility stocks with currently 17 different stocks). When the Fed Funds rate eventually starts going down, both ARKK and OARK will go parabolic like ARKK did years ago. ULTY's holdings are a perfect match for YieldMax's strategy. Lastly, for the single stock ETFs, it is nice to get income from stocks that have no/low dividends (TSLY, NVDY, etc), but agreed that in the long run, holding the actual stock is typically way better for total returns.
if nvidia keeps this it for years like 10, nvdy will blow nvidia away because of the power of the dividend. in the last year with the nvdy with dividend return its 1.46% and nvidia is 1.8% not far off from each other.
@@bunkeyscow Agreed. Also, another benefit with the YieldMax funds is that they are on options chains. Personally, I sell put options with strike prices below the current market price so if the price falls, I happily get assigned 100 shares...and if it doesn't fall, I still keep the premium from selling the contract. It's how I fortunately acquired 100 shares of NVDY earlier this year.
@@mlwilliams4407 I have been playing with amc with selling calls and puts. If i lose my shares this week on amc, they can keep my shares. Ill be up 70%. Pot stocks are a great too for cover calls.
YMAX is good to own, just don't make it your ONLY holding. Make it one of your core holdings and surround it with other ETF's that have more stable/consistent yield for your income. JEPI, SVOL, etc
I have several extremely high risk/high yield funds, but I never put more than a small amount in these. It's about balancing your portfolio.
it's ok to be part of portfolio but dont go all in!
Looking forward to your thoughts on the diversified ultra high yielding option ETFs like Defiance and Roundhill.
If you think YieldMax ETF’s are bad, wait until you see the performance of SACH
I don't think any of these are buy and hold funds though
Buying YM just needs a specific strategy. First there are only 7 needed or worth buying. Second buy only on ex date. Third always look for dips, set an alert or set a limit order. Slowly build up your position. It’s not that hard, just takes time. You can collect 50 - 60 percent. NP. Never buy and hold.
lol you will end up buying some in the long run watch lol !
Your way to negative on this one ..let’s brake it down if you want to own yieldmax then buy shares in most of the single stocks and include Ymag and Ymax this for example could be 20 % of your portfolio then reinvest most of the dividends … the x day is a few days from the pay date …hope this helps
too not to, break not brake
I have some XOMO because I think it's the most likely to trade sideways over time. I also have a little bit of CONY but I am constantly eyeballing the exit.
Yieldsmax are now doing inverse funds. So far they have CRSH for Tesla. You could hedge your position while increasing your dividend rather than shorting and having to pay a dividend on top of interest.
Check TSLY now. Also check its latest distribution. They’re both very good.
I'm new here... here's a question. In the video, from about 4:50 to 5:10, he compares the price drop in TSLA to the price drop in TSLY. But he fails to account for the dividends paid out from January '23 to May '24. By my quick count, if you add the dividends back into the price of TSLY, then the drop is only a bit more than the drop in TSLA; not a difference from 50% compared to 10%. Am I seeing things correctly?
Agree. Single fund ETFs very risky. YMAG/YMAX more diversified.
should call them nav erosion max funds,,,I have had them for 6 mo and nav erosion out paces the div payed so far,,,not going to sell just yet ,,,see what happens
its a speculation investment... as a very small side project i take 50% of my tsly div and reinvest into tsly and 50% into jepq. if it sh1ts itself its ok..
Yieldmax is house money after 20 months. Bank, sell, reinvest afterwards.
They look dangerous to me.
Missing out then
Learn to trade them
They're very lucrative
One only needs to chart the underlying to understand when to trade them
I sold NVDY for hugh profit last month you are right
Na share price will drop till stock split. Stock split till dividend cut and overall its a trap
Garcia Elizabeth Robinson Kimberly Brown Amy
Thank you for adding perspective to the _gold rush_ attitude UA-camrs have for YieldMax ETFs. I've been suspicious of them despite all the hype because there has to be a catch. The catch is NAV erosion. If the ETF drops more than the stock it's based on, then it's not a good performer. Maybe the distributions are ROC (thus tax-deferred) or maybe they're regular income (full tax rate), but there are concerns.
i can handle the yieldmax slander but not CLM 😢
Thanks. Not for me, either.
Bro you keep using TSLY as your logic on how the funds work, These are not buy and hold ETFs “, you need to be ready to trade out of it, and move to the next one, once the underlying fund meets market resistance, and starts under performing, take your gains and jump back in into another that predictive price movement to the upside, these funds are not diversified assets, hence the huge upside potential in dividend income.
You need to build a portfolio within a portfolio with these funds. I currently invest only 12% of my portfolio in them and they represent only 7 out of 54 total positions. So the diversity and risk management are there. And I reinvest the dividends and limit the overall exposure by not adding a larger percentage. They are not designed to invest your entire portfolio into.
Im makimg 2400 from yieldmax with cony n msty. Been with both since the inception. Its the ocean and we ride the wave. I panic sold in feb really bad. I recovered since then ❤
Johnson Richard Thomas Brenda Walker Paul
ZIVB is the best, paying 24% dividend.
White Anthony Jones Charles Lopez Brenda
Brown Helen Thomas Anthony Lewis Melissa
Taylor Cynthia White Eric Taylor Sandra
Davis Kenneth Lee Charles Jackson Susan
This has to be an AI guy. Run on sentences and no emot😢ion
Young Sarah Miller Kenneth Hall Dorothy
Davis William Perez Deborah Walker Donald
I would love to hear your opinion on the fund fepi
I am torn. Its certainly tempting to "roll the dice" over the short term in the hopes you can earn enough and then jump out....I think you would need to have a very clear exit strategy. The problem I have been having lately is the so called "long" term safe dividend aristocrats have also been sharply cutting dividends. Things like ATT, Disney, WBA, MMM, Intel, just to name a few are supposed to be "safer" long term plays...Not sure I believe that there is any really safe dividend out there.
There isn't, another problem with those "Safe" dividend companies is that their yields are lower than the real inflation.
Perhaps then consider YMax. As time goes on, they will add more funds, which will get captured under YMax. It’s hard to argue with a 43%?(approx..) yield, and that’s what YMax offers). Best of luck!
Thanks for the info.
YMAX about the only one worth looking at IMO
And YMAG maybe perhaps CRSH
What do you think about ULTY now with a lower price (especially next week) and with new companies in its portfolio (10 different companies I believe).
Diworsefication.
Who cares do u
I heard about these from your channel first last year.
I love yieldmax
How you can live off these Yieldmax funds is when they generate 25x of your monthly bills. By reinvesting the remaining dividends the 25x income will grow. In addition having a rainy day growth portfolio can help to ease the jitters if you're not truly an investor.
They’re releasing funds that are short those companies as well… if you’re a trader that uses that to build an investment portfolio… 🤷♂️ why not
Clearly they are not diversified, so you have to treat them like a single stock. That means, you can just hold several of them plus some others like QYLD, real estate or anything else you want, like bonds. It's not a yes/no question, it's just another option to boost your portfolio.
Really liking FEPI right now....if the NAV erodes by 10% or more I'll sell in my Roth and reallocate.
Yeah. That is the point of yieldmax. I cant afford my own tsla to sell my own covered calls. So dont buy all in at once
I will say that these options do look good for the strategy I use for my Roth IRA and so I may add these to my spreadsheet to utilize. It's not a buy and hold strat, it looks for recovery opportunities while using dividends to re-invest and take advantage of the Roth's tax free status for that purpose. Given that dividends are a part of the strat along with recovery, looking at TSLA would not have been in my book. But a synthetic covered call that is distributed does open that door through TSLY.
They fact that these track single stocks work because I take on multiple 2% positions to diversify and saftey on the strat, so it tracking a single stock is a bonus and not a determent for me. We'll see how it goes. Thanks for introducing these.
And believe it or not on a total return standpoint…..TSLA and TSLY are about the same over the life of TSLY. Couldn’t believe it till I saw it
If tsla is $1k what will tsly be ? Dirt cheap right now imo. Use half the divs to buy the underlying or another appreciating asset
For me, it's all about time horizon. I'm 100% on board with you about the lack of diversification, but I'd willing to give YMAX a go, provided it's a minority position in a larger dividend income or dividend growth portfolio AND the time horizon to retirement is still measured in decades. YMAX, theoretically anyway, avoids the issue of Nvidia not returning 180% every year and interest rates not being at 40 year highs in any given year, because something under the theoretically growing YMAX umbrella would be doing well enough outside of market downturns. But if you held YMAX in retirement, the yield would have to be good time, vacation, splurge a little money in retirement, not monthly obligation money.
Of course, you diversify. There is nothing wrong with putting 10-20% of your portfolio in multiple YMAX funds.
The "really high" paying BDC's and REIT's pay like 5 to 13 percent or something similar whereas the "low performing" Yieldmax and Defiance funds pay 15 to 20 percent or so roughly so it's worth the risk to me. I want to supercharge my retirement.
A lot of the BDC's and REIT's that pay like 8 percent aren't exactly great investments either. Jay was on a video yesterday saying that the way things are going, CONY will have been out a year this August and will have completely payed itself off if you bought at inception. I know that may not always be the case, but you can't beat that. If I'm going to go for dividend payments I want to go for the best I can to a certain extent. Some of these funds like CONY, ULTY, and MSTY are paying like 5-8 percent per month roughly.
I put in 96000 in Tsly. They tell untold stories reinvest dividends. Luckily I never did.. I put my five in growth etfs... however I was down 30000, in Tsly .. I got out.. the nav just depreciates
ecat and bcat recently doubled their divi and yielding %20 annually now. both are well diversified. i have them as backbone of my portfolio. i also protect my tsly position with CRSH. both high divi. i also have XDTE paying me weekly
Hey thank you for sharing Ecat and Bcat, I’m interested. I’m also in XDTE and QDTE and hedge TSLY with CRSH….equal dollar amount, only way to play
I’ll be taking positions in E and B cat Monday!
@@kevinrcaim more invested in crsh than tsly since economic enviorment is poor for a car company. im %55 in crsh and %45 in tsly. i also like gold but i rather have the new yieldmax GDXY goldminers fund and BITO bitcoin fund
Can you please explain how you hedge tsly with crsh? Would this be considered risk free type of thing? Given the fact that has bullish outlook and the other is bearish?
Nothing is “risk free”. I have equal dollar amounts of TSLY, TSLP, and CRSH…..that’s how I play it.
One other strategy I’ve seen around the yieldmax funds is to reinvest a certain portion of the distributions back into them to combat the nav and distribution decline over time.
What about the yieldmax big 7 ETF? Certainly, the big7 aren't going anywhere.
I like to take the nvdy dividend and invest it in the double Nvidia ETF to hedge the dividends with growth. I also do that with other yield Max funds. I wouldn't touch tsly but I will buy the ones that are performing amzy, msfo, ndvy Etc
Good content. I just heard about Yield Max ETFs today. Insane yield and no security around principal erosion.
Also i sold my tsly after i calculated my dividends and realized i recovered my initial investment already. Waterfalled the loss into cony msty imwy ulty qdte ybtc ymax. Im on track to 6k a month now 🎉
Defiance does the indexes as well. The share price on them has dipped quite a bit if I remember correctly but IWMY has had crazy payouts.
Yield Max uses the same covered call strategy as the other funds. Using synthetics allows them to get the same prices movement for lower the cost. I don't think these ETFs are meant for long term holding unless you are long term bullish on the underlying. They are risky being concentrated on one stock but that would be no different than holding the stock it's self.
Well said and I agree!! Amazon, Microsoft, Nvidia (for example), are not going to fade away, and these are the types of YieldMax funds you want to hold, and not just for the short or medium term.