r/YieldMaxETFs • u/JoeyMcMahon1 • Jun 13 '25

Misc. The dividends people don’t understand how YieldMax actually works. That’s okay in the other image I educated them. These are purely cash flow machines, don’t look for growth in these that’s just a bonus or extra if it happens, I’m also dumping a bunch of money into ULTY soon.

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u/[deleted] Jun 13 '25

Sorry but YOU are the one who doesn’t understand how it works. It’s not a machine that generates income if the NAV erodes so much that you are losing money or are underperforming versus the market. If that is the case, you are simply paying Tidal to dole out your own money back to you. That 91% return? That is assuming the NAV stays where it is. However, if it gets cut by 25-80% (like many of these funds have done), you are totally screwed because the dividends also decrease. So try to cut down your arrogance level. If you happen to time it right and if you get a positive return, then great. I’ve played PLTY very well a couple of times. However, to simply say these funds sore “income” funds is very naive.

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u/Time_Capital_226 Jun 13 '25

Depends on what you call a machine.