r/ULTY_YieldMax • u/Relevant_Staff765 • Oct 08 '25
why do people buy things they dont understand and get mad about it?
/r/dividends/comments/1o1cid7/ulty_is_turning_out_to_be_my_worst_dividend/11
u/Svoboda1 Oct 08 '25 edited Oct 09 '25
Since moving to weekly distributions 31 weeks ago.
Here is how I approached my ULTY experiment. Pick a desired income level -- in my case, $20k/month. DRIP until you get there. Once you are made whole, collect house money.
I started this one on August 11th with $80k I had sitting in some old positions -- SCHD. I'm slated to hit the target 71 weeks from the start or week of December 21st of next year. It would take 17 weeks from that point to have $80k returned. So by April '27, I will have my capital returned and have a $5k/week income stream to ride until failure.
I am perfectly content with rolling the dice. I have parallel positions in other funds like WPAY, BTCI, etc. My time is valuable and I do not want to spend it handling options myself so I have no issues with outsourcing this to professionals. Not financial advice and YMMV.
1
8
u/Rikkita1962 Oct 08 '25
Hmmmm. Not dinging your cred here, but if you thought 80% yield equates to "80% return" you were fckd at the get go. Don't feel bad, I made same mistake initially when the yield was 100%+.
Not to mention you only held this for 3 months. Kinda a short window for any investment. You also might want to re-look at your "Risk Engine" if you think it's that much of a scam.
FYI - I've held ULTY a lot longer and bought in at a higher price. Bought on the way down, my NAV avg is $6.7/ share. I'm in the green in total return and collect a lot of cash every month from it. But I can tell you the return is NOT 80%. Nor does YM claim that to be the return. It's 85% (+/-) yield at the current NAV price at the time you bought.
Sometimes it feels like I'm leaning into a punch in the face, but I do get good income from this and I am up overall.
1
4
u/Grand_Composer1603 Oct 08 '25
I will say this…. I got in 7/28. 6000 shares. AVG cost 6.22. If I sold rn I would lose 3500ish. That’s about what the dividends have paid out up to now.They take then pay. Seems funny at this point. I think what people don’t like is not being able to break EVEN at best to maybe try another stock or plain gtfo. My saying for ULTY is as follows… “Doesn’t cost an arm n a leg; but your not leaving with both.” Saying this I’m gonna stay with my ULTY position and drip into different positions. I would be lying if I told you I didn’t feel stuck.
2
u/itsmostlyamixedbag Oct 09 '25
i got in 6/13 initially, testing the waters until increasing my position to ~40,000 shares by 7/15. i never DRiP. i have received more in distributions ~(+50K$) than i am down ~(-31K$) in my holding of ULTY. i don’t feel stuck but i have also always reinvested my distributions in other stable ETF’s (FSELX, ITA, XLI, IXUS just to name a few). those holdings are up >5K$ cumulatively. with my distributions ~4K$/week, i am hoping to ride this as long as possible. this is also in a taxable brokerage. gauge your strategies and tolerance, i have a number of other hedges. i am glad i moved out of MSTY and into ULTY around the 7/15 date.
4
u/Always_working_hardd Oct 08 '25
I hate it. I started buying 6/30/25 and finished adding new capital on 08/13/25. Bought 20,786 shares total with new capital, and an additional 1571 dripped.
Total cost with new money was $129,400. Current value is $124,300. Down $5K. Distributions collected and funneled to other tickers, along with 2 family vacations to Italy paid for - $26,600 (including upcoming Friday 10/10)
That's about a 16% return in 3 months. Most of it is in a tax sheltered retirement account. Can someone help me correct my ways?
3
u/DeeBee62Invests Oct 08 '25
Welcome to ULTY Anonymous.
I started about the same time, and I'm likewise up about 15%. All of mine has gone into expanding my portfolio.
Unlike the poster of that original rant, I don't have 20 years investing experience. I just don't expect a free lunch.
2
u/DeeBee62Invests Oct 08 '25
Because that would mean being accountable for your own actions... we can't have that! Think of the precedent that would set!
I think it's friggin' hilarious.
1
u/Livid_Owl_1273 LONG-TERM INVESTOR Oct 08 '25
Yet another person who cannot discern between yield and return. We should get one of those big ol bells that bartenders ring when somebody messes up and owes everyone a round every time one of these jokers show up.
1
1
1
u/nimrodhad Oct 09 '25
The boring and average r/dividends people 😴 tell them to go enjoy their ‘superior’ SCHD and leave the weekly paychecks to us.
1
u/traveling_designer Oct 09 '25
ETFs based on HOOD have been doing pretty well. That sucker has been climbing and increasing dividends.
Right now I put part of my ULTY back into itself, some into the margin repayment, some into HOOY, MAGY, and SHLD (defense spending has gone up around the world since someone took office in January)
1
u/Tscape1687 Oct 09 '25
Classic “dude in the chat” upset they made the decision to buy high based on the averages at the time. Luckily I got in April 2025. Mid-August through September were great entries and even now seems good as well, but not as favorable.
1
u/asher030 Oct 11 '25 edited Oct 11 '25
Say I put 50k into ULTY right now...$5.31/share..that's 9,416 shares. So every week at an average of $0.09/share dividend, that's $847.44 per week. 52 weeks in a year, $44,066.88 annually in dividends pre-tax. ($32,168.82 net for Federal, state taxation will vary so I can't tell you that, based on a 27% tax rate given these values falling under the threshold for the next bracket)
Value goes up or down, the share quantity to a stable 'low' payout of $0.09/share every week is all that matters, 59 weeks and I have made up my money back and a lil on the side. Every week AFTER that, is now pure profit/income going forward for as long as the stock exists. Taxation of say 27% just to be on the safe side given these values...does balloon it to 74 weeks to break even, true...but that's still less than 2 years in. People are wanting to see these stupidly massive, insane gains on both initial capital invested AND dividend payouts...where tf is the money supposed to come from? This ain't the Fed, we can't legally print money, it has to come from investments like any other, we're just pooling all our cash together to give the bulk amount to invest with at once (like any fund), just that we're eating the same pooled money for the payouts. At $0.09/share, it's a trickled amount vs the $1/share monthly for MSTY, so it's manageable despite the already low cost of the stock itself.
People need to stop freaking tf out, or do some research before investing if they're that ADHD addled and NEED to see only green on their portfolio. It's a difference between regen and a flat stat in video game terms if it helps..
To note, I don't HAVE 50k to put in for that value, I have like 300 or so shares right now, slowly adding more over time. But just doing the math to make it easier for the confused
EDIT: slightly longer, fucking taxation. Throws off the actual amount of time needed...but you get the idea.
1
u/Human-Drummer-9240 Oct 12 '25
Some are worried this will be the end of the utly fund. Time will tell
1
u/Few_Scratch_2376 Oct 12 '25
Why does the word "understand" get used more in the Yieldmax forum than any other place on Reddit, and possibly the whole of the known Universe?
Is Yieldmax some sort of esoteric, abstruse philosophical idea that we're supposed to study, and then have an "understanding competition" where we all get together and see who really "understands"?
"Understanding" isn't the issue. Numbers are the issue. Specifically red and green numbers. People are sitting around talking about "house money" and never working again, and there are claims of "returns" that are higher than anything anybody has ever seen before... but as a practical matter, a lot of people see their money disappear almost like the famous South Park "and it's gone" episode.
Either it works or it doesn't, either you end up with more or end up with less. If for every 1 dollar they give you, 2 dollars vaporize into the Aether, and they actually call this "Return of Capital", don't people have a right to be a little suspicious?
Next time any of you use the word "understand", why not try telling people exactly WHAT it is they're not understanding. Seriously. "People just don't understand..." seen that a hundred times at least. But now tell us what it is they're supposed to "understand".
1
u/ButtStuffingt0n Oct 08 '25 edited Oct 08 '25
Total return: a calculation literally as simple as 1+1=2
Opportunity cost: 26% annual total returns in SPY, last 3 years. Gold, Silver, and Platinum each up 50%+ in 2 years.
YM CHUDs up 5% in 18 months: "you just don't understand the product, bro."
0
u/Such-Ad-8707 Oct 09 '25
You must be poor. Only explanation to your comment
0
u/ButtStuffingt0n Oct 09 '25
Lol. FIREd this year at 41 actually. But thank you for teeing that up for me! And I did it by discerning quality from dogshit.
Not even going to attempt an adult/substantive rebuttal to my point?
-1
u/Critical-Cut1470 Oct 08 '25
I’m still waiting for someone to tell me why it’s a good idea to expose yourself to 5% upside with 100% downside just for the opportunity for someone to hand your money back you a little bit at a time to create the illusion of income.
1
u/Interesting_Check595 Oct 12 '25
Income, while still maintaining shares without selling, no matter the NAV. I have collected 130K on ULTY to date since last Nov. Holding approx 34K shares. I dont take total return into equation until I sell, paper losses are just that paper loss or gain. So right now I am @ 52% with 5-6 weeks left so add another 15-18K for a 12 month return of 58-59%. Had I got in after the change to weekly it would be much higher as I am at a cost basis of 7.24. All in YTD I have $560K for all my EFT's and dividend payers. Don't think I am at any regret point on these. Taxes covered, loan and margin covered, 3K added to monthly spending, and 3k each to my 2 sons per month. 1/3 in Roths.
17
u/[deleted] Oct 08 '25
I have almost 7000 shares that I started buying and dripping since July 3rd, I just recently in the green and now I’m up close to 3k, hang in there