I’ve been covering some of the best ETFs for maximizing dividend income, and majority of these ETFs use a similar strategy which is selling call options on their underlying holdings to generate premium income which is then distributed to investors as a dividend yield.
Now majority of these ETFs are either selling call options on the S&P 500 or the NASDAQ 100.
But there are some ETFs that have taken an entirely new approach to the covered call strategy and instead of selling call options on a broad index, like JEPQ, they’re selling call options on individual stocks.
And there’s one company in particular that has been gaining a lot of attention and has been pumping out a new ETF almost every month that sells call options on a specific stock.
And this is the Yield Max ETFs. Now I have never been a fan of the yield Max ETFs and I’ve regularly warned investors about the implications of such ETFs in the long term.
But there’s one ETF they recently released that has been able to accumulate almost 800 million dollars of assets under management in one year, providing a monster dividend yield of 46%, but most importantly, is diversified to 30 different individual holdings.
This is the one ETF from yield Max that is not concentrated to one stock. And I was actually pretty happy to see this.
But unfortunately there are some major issues with the ETF that every investor needs to be aware of, plus I just found out a dirty trick that the fund managers are playing on investors.
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Many YieldMax investors have complained about YMAX 1.28% mgt fee but the manager have given jibberish about the administration cost of spreading the money out and collecting the income. I don't think it's 25 basis point worth of cost. I think it is a headache of investing in about 8-10 ETFs yourself, so people like me eat the cost but I am ready to sell it anyway.
All Ymax is trash…pays 30% but nav erosion 25 hahah
Excellent analysis as always. This really helps people understand how the funds work and if it is something they want to invest in.
video about MSTY please, thank you
I bought YMAX shortly after it came out, reinvested dividends, did not buy or sell any shares other than reinvested dividends. Total was up 35% in six months.
Thanks
You just gotta love RED❤
So what's the etf im supposed to drop? 😮
looser etf
I love your channel and just subscribed. I am nearing my early retirement plan date and researching about dividend investing with my 401k balance. I find lots of helpful info on your videos. Thank you!
Yeah, it depends on your investment strategy. I have roughly 200k invested within 10 different ETF funds, and yes, three of them are Yieldmax funds. I’ve been investing with them since 2023 for INCOME GENERATION ONLY. Yes, you can experience NAV erosion with these funds, but I’ve always bought down during bad periods so my cost AVG are far below the current price AND they are part of my 10 income ETF’s I own, that generate me roughly $90,000 a year of income. Retired at age 53.
No, this does NOT include my ROTH or other long term IRA accounts that are the foundation to my plan later in life.
I just got it up to 100 shares. Using it to fund other ETFs faster. I will keep an eye on it. Jay telling us to just reinvest dividends back into the NAV eroding stocks if we didn't like the NAV erosion on Oracle's interview was a bad taste. I already dumped AIYY, TSLY, ULTY, & CONY.
I disagree on them doing nothing for the higher management fee. They pay weekly so there is more work trading options to calculate weekly dividends. I believe yieldmax only has 30 traders for all there funds.
Thanks for the analysis! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (mistake turkey blossom warfare blade until bachelor fall squeeze today flee guitar). What's the best way to send them to Binance?
The video is informative, but it would be better if you talked about Moonacy protocol—it’s real money!
I don't always agree with her but I like to listen to her argument in order to do more research on my own. Only fool believes they're always right or that they know everything.
50% dividend would imply you would get your money back in 2 years if value doesn't drop… The value has to drop, and they will still make tons of money due to the high fee.
First u have to present the full math of total return of underlying and once of yeildmax…and only after that u can have "my apinion"
I keep clicking “do not recommend this channel” yet I keep seeing these videos…
Owning individual stocks is definitely the better way to go; however that has also proven to be true for the indexes.
If you believe the market is going to go up in the long run, CC funds are likely to underperform. It takes a skilled fund manager making bespoke trading decisions on a continual basis to generate alpha. Not a boilerplate 1-3% OTM target so a specific amount of income can be generated.
It’s better for you to hold on to the underlying stock because you are young and have time on your side…Older folks who need the income can benefit from the higher yield stocks now. Different strokes for different folks.
These types of stocks are not set it and forget it. You have to DCA on dips and EX dates routinely. All my YieldMax are up or even right now and I get to enjoy some high income when I want.
Never buy anything that has a yield that is not reasonable. Thanks for the video.
Huge thanks to the creator for this content! Quick off-topic—has anyone tried Moonacy Protocol’s latest investment plan? I’ve got $34,000 and earn 1.85% daily. Thinking of reinvesting my profits
Yup I hate the Yieldmax funds too. I have written about them for months. And the sad part,most of the investors are Millennials or GenX and they should be focused on Growth not Income. Soon they will lose a significant percentage of the portfolio, get discouraged. and stop investing period. And for what? So the Yieldmax ETF holders can charge a huge one percent
Has she done a video on $JEPQ and $SPYI
I agree with you. You must avoid NAV erosion.
Dude, I withdrew $6,000 from my Moonacy Protocol account yesterday. You should tell your followers so they can earn too
I typically skip and block channels with thumbnails of some overly expressive or shocked look on their face. That tells me they are more interested in views than they are being reliable or trustworthy. Consider earning your subscribers through good analysis and information instead.
Thank you for this video
I'll subscribe when the camera goes a little lower
I love how you break down the setups nd strategies so clearly. As someone who's also exploring trading opportunities, you and trader Anna has similar stratgy. Their tools and resources have been super helpful on getting profits. Keep up the great work, and I can't wait to learn more from you and trader Anna!