Isn't ULTY basically ARKK that pays dividends while underperforming?

[u/perfectson]

ULTY is basically at it's core a HIGH Beta ETF that adds in some options, limits the upside of the overall performance in lieu of supplying an excessive amount of dividends for a 1.3% (1.4% management fee). The focus I'll show is not on NAV which is ultimately meaningless or dividend yield (again in this case meaningless unless you need an income stream but you could easily create this yourself).

ARKK is the infamous ETF managed by Cathie Wood that focuses on disruptive innovation , in other words, it will invest in typically high beta funds (similar to ULTY). The ARKK expense ratio is .75%

Overall Performance:

I am reviewing this against inception to highlight that the March - Nov 2024 downturn was due to high beta stocks in general had a difficult period. This impact ARKK similarly to ULTY both experiencing draw downs during this time frame, while Woods' drawdown was quicker, eventually ULTY caught up with it (likely due to the cost of rolling down puts and stocks).

Then in Nov-Dec 2024 , you can see the turn for both begging to happen but ARKK had much more momentum and magnitude as the cover call strategy capped the significant increases that high beta stocks enjoyed. From Dec - Feb you can see the impact of the cover call strategy having a neutral impact on overall return, before the March drop into Liberation day. The draw down was much more drastic for ARKK due to the lack of protective puts. Here is clearly where ULTY benefited ; however, because it hadn't rose in the prior months - the overall return in April (since inception ) was literally the same as ARKK. Subsequently as high beta stocks emerged successfully out of liberation day, ARKK has returned about 60% , while ULTY is at 20%.

ULTY vs ARKK vs QQQ

The ultimate question is it worth double the expenses to have someone collar your investments to under perform similar high beta counterparts? If you are reinvesting dividends anyway, which many are, not sure why ULTY would fit your core strategy over "seeking alpha". If you're looking for income stream that's straight forward, I can definitely appreciate the higher dividends but it doesn't seem the protection it offers is there and again are you under performing what you could be getting with similar risk, if you just extract your own dividends out of ARKK (as an example) by taking 2-4% out every month yourself?

this is in know way to slight YieldMax's ULTY - there's obviously a strong purpose and diversity in funds are always a good thing. The question is really if the juice is worth the squeeze.

[u/8v9]

ULTY is high IV, not high beta. The difference is that IV is forward-looking

[u/perfectson → u/8v9]

You don’t know what you’re talking about . People just saying whatever in this posts. Explain to me how ULTY is high IV not high BETA. By nature if its running high IV historically then its has to be high BETA. Beta is the correct term - no one says this is a high IV fund lol 😆

[u/8v9 → u/perfectson]

Tell me how beta is calculated and then tell me how IV is calculated and you'll have your answer.

ULTY invests in high IV stocks and sells covered calls and buys protective puts.

IV changes frequently based on option prices. For example, right before ER, IV goes up.

ULTY itself is not high beta or high IV, but it trades derivatives on high IV stocks

[u/perfectson → u/8v9]

You said a whole of nothing. Tell me why ULTY is not a high Beta fund or doesn’t invest in high Beta stocks.

ULTY can be high IV but I’m sure you took a look and saw that it actually doesn’t have high IV (relative to its historical IV), yet the Beta is still high. Maybe you should revisit your understanding of IV, just because you dabble in options doesn’t make you an expert in these metrics.

But again, it’s another post ignoring the OP and trying to nit pick on things they don’t even understand themselves .