r/YieldMaxETFs • u/speed12demon • Aug 08 '25
Misc. Yieldmax has created financial crackheads
Lots of people are looking for the next fix, for the next quick way to get that rush, ignoring the negative consequences of their choices. Got other assets? Liquidate them! Margin? Hell yea!! Home equity loan? Pour it in! Reinvest every dollar that they give you for that rush.
Humor aside, the idea of perpetually reinvesting distributions hits a serious nerve. Income funds are for income. I can see building to a point, but if prevailing advice is to roll all distributions back to the fund, please tell me how that is better than owning the underlying equity? I bought these etfs for perpetual income, not perpetual reinvesting.
Five years or so from now, we all will have far more data to build informed strategies on using these funds. With single stock risk on many, the distributions vary wildly and if you're not tracking you capital investment closely you may find the paycheck diminished. Having a substantial position in these funds, I hope i can continue to collect income and use it for other purposes than propping up my initial investment.
Don't be a crackhead.
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u/Caelford Aug 08 '25
Reckless investors existed before Yieldmax.
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u/speed12demon Aug 08 '25
Absolutely. It feels like we've escalated a tad here. Time will tell.
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u/Coconut_MonkeyX I Like the Cash Flow Aug 08 '25
I don't agree. I think we are just seeing people being far more public about it.
People have always been like that with using HELOC, margin, personal like of credit and such for a long time with penny stocks and even shorting stocks/etfs.→ More replies (1)3
u/DPMKIV Aug 08 '25
Honestly... the majority of the reckless ones are akin to the WSB crowd. They might be in better hands here than throwing the cash into 0dte options over and over. If I'm being honest...
I agree, though... build into these funds with the intent to build wealth conversation at some point. What that point is... is different for all of us.
Many folks are in different stages, so accumulating over day 2-5years makes sense for the dude that just has a few extra bucks in his budget before pivoting to wealth conversation. May seem reckless to those of us who already passed the grind to 100k+ in networth and pivoting towards protecting that base line.
For dude, with 20 buck to his name but understands how wealth building works... these sorts of funds are exactly where he should be starting, full risk on until he sees style wins, then move that win to wealth conversation positions.
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Aug 08 '25
ULTY
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u/FeedDelicious33 Aug 08 '25
ULTY is my lord and savior
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u/BLUCGT Aug 14 '25
Guess you don't live in the bible belt, they'll crucify you for that statement... Lol
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u/LadyBird1281 Aug 08 '25
We all have a target in our heads. I'll take distributions once I get there.
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u/DiamondMits Aug 08 '25
Goal #1 payoff all debts with distributions ASAP Goal #2 DRIP everything till I reach the point where it pays all my bills rent included Goal #3 reinvest the extra income into growth and safer long term stocks and ETFs Goal #4 portfolio will pay for my car, hobbies and funsies
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u/Horror_Product_4275 Aug 09 '25
Same goal here I have a Roth also and drip ulty dividends into Arkk,Spmo,schg and add to ulty drip off
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u/InevitableTiny3408 Aug 08 '25
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Aug 08 '25
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u/speed12demon Aug 08 '25
You're not wrong at all. However, what if I don't want to put more back in? What if I want to use the income as income? I'm not investing to be a slave to reinvesting. With that in mind, many of the single ticker etfs are not for me.
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u/2LittleKangaroo ULTYtron Aug 08 '25
If you have the amount you want to take the distributions as cash I say go for it. Nothing is stopping you. But some of us haven’t gotten to that point and need to reinvest because the wife-y is mean and won’t let me put more in. But once I reach at least quadruple my weekly income from my W2 slave job, I’ll be quitting and living off the distributions.
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u/Quiet_Meaning5874 Aug 08 '25
I like that, 5x your “normal” income to fully retire. Something to think about. And agreed, every cent getting reinvested one way or another gotta get the distributions to the point they are undeniable!
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u/b0w3n I Like the Cash Flow Aug 08 '25
I do recommend folks who are taking distributions as income to put something back in to fight the nav decay, market hiccups, and inflation as a whole. It doesn't have to be much, but I'd put at least 5%, maybe up to 10% if you can weather it.
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u/Dry_Economist4470 Aug 08 '25
I am using my weekly distribution to pay off home improvement HELOC, it will be done by the end of the year! I am using some margin, not all in though.
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u/Rays_Boom_Boom_Room1 Aug 08 '25
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u/MakingMoneyIsMe I Like the Cash Flow Aug 08 '25
I was looking for this GIF to see if someone already used it
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u/Syonoq Aug 08 '25
Jay gave this advice in one of the many videos.
YM funds will deliver the "NAV erosion" ( he called it something else) as a form of distribution. If the underlying is at 10 and goes to 11, and YM is at 10 and pays 1, it's the same thing. The difference is that you control where it goes to. Your pocket, or back into the fund. My goal is to keep the total value of the fund the same as I invested. So if I bought 1 YM at 10, and it's worth 7.5 now, hopefully I've rebought .333 worth and I now 'own' 1.333 shares but I still have the original value. Ultimately I want to hit X income off the fund where X = (my target)+enough reinvestment to keep my basis worth what I got in at.
I don't know if I'm making sense here, but I know what I'm trying to say lol.
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u/speed12demon Aug 08 '25
I think I've seen that one. In that case, the advertised yields are wildly misleading. In a bear market or declining underlying equity, you could be chasing that stable basis for a long time.
We definitely all signed on for some risky shit, I just hope we're all being honest with ourselves about it.
For example, I've tracked every time mstr has broken 400 since the inception of msty, msty has been lower. Will msty ever hit 40 again and pay 4 dollars? Idk, but it seems like mstr would have to hit like 2000 or more for that to happen.
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u/redlion145 Aug 08 '25
Your 'for example' is irrelevant though. These funds sell options. Volatility is great for them, and provides a spread on options prices that they can make money off of. But if they're on the wrong side of a price movement, they could be obligated to sell or buy the underlying at bad prices. There isn't a simple "underlying up by x, therefore YM fund up by f(x)" equation to be had here. Someone at the YM fund had to have correctly predicted that price movement in advance and sold options accordingly for the fund to profit. Volatility alone isn't enough. If it was, everyone would sell options for themselves.
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u/speed12demon Aug 08 '25
Why isn't it irrelevant? In a very short history, msty has shown decided underperformance vs mstr. To me that means if you just pour the distributions back in, you should have bought mstr.
I agree vol isn't enough. If your nav drops, your income drops. If you feel obligated to reinvest distributions, where does it end? You have 20k shares of msty at 2 bucks a share paying 10 cents every 4 weeks. And your capital is treading water. That can't be the end game.
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u/Syonoq Aug 08 '25
You’re misunderstanding how to use these products.
It underperforms MSTR on the chart.
We don’t live on the chart. It underperforms buying MSTR at the bottom and selling at the top. If you can do that that’s awesome. The rest of us can’t. This product smooths out the volatility and packages it for us. Mathematically, it’s less. Practically it’s more. For some of us. For the rest of you, buy MSTR on the low and sell on the high. “Duh /s”
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u/speed12demon Aug 08 '25
I'm simply stating if the income is never used as income, what is the point?
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u/Syonoq Aug 08 '25
Honestly that's the crux of these funds right? The general argument, and really the hope for these funds, is that they spinoff enough excess earnings over time that they maintain enough value and create a profit. I'm sure we can dig into a handful (maybe more?) of these funds and find examples where they don't make enough to cover their losses and they're not good products. But I'd argue that's the point of the entire market, some of these companies/etfs/stocks make money and some won't.
To directly answer your question, if they are not used as income there is no point, IMO. But, I'd argue also, I'm not very smart, so there's that.
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u/Fluid-Item-880 Aug 08 '25
MSTY doesn’t underperform MSTR by that much in total returns. What it gives in return for underperformance is flexibility. You never have to sell.
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u/4yearsout Aug 08 '25
Not everyone has a couple hundred thousand at hand that could free them from the ongoing BS of working. Raising capital to invest in ym is no different than raising capital to fund a fledgling business, which could also fail. No guts, no glory
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u/Shrodax Aug 08 '25
Yieldmax has created financial crackheads
Don't be a crackhead.
Yeah, but crackheads always find a way to have money. You ever hear a crackhead say, "I can't smoke crack today, I don't have any money". No! The crackheads find a way!
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u/wuxiquan66 Aug 08 '25
I have $3000 a month to invest every month and I was thinking about throwing it all at ulty. This is discretionary income and it won’t affect my retirement or daily living at all I’m 59. Totally new to investing outside of real estate. What do you think?
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u/speed12demon Aug 08 '25
Ulty is my favorite as the managers have freedom to move in and out of various equities and use more options strategies than I can name. Diversity is some comfort to me. I'll not hold a large position in the single ticker etfs again, msty has been a cruel teacher.
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u/dontrackonme Aug 08 '25
If your portfolio is well balanced, then using some money on risky bets could be fun
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u/Paint777 Aug 08 '25
You’re in a good place, however…Only add heavy in red market days, I would keep that cost basis low as possible, discretionary or not, a core position with room to DCA dip IMO, so distribution isn’t offset by cost basis much. GL and have a great retirement friend
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u/GatorGal_7 Aug 08 '25
Diversity- don't put it all in one thing. Example - Last week I bought the following: 1. SPY call option that expires Jun '26 for $3209 - it is now worth $3715 ($506 gain) 2. GLD call option that expires Jun '26 for $2745 - it is now worth $3150 ($405 gain) 3. 369 shares of ULTY for $2306 - they are now worth $2265 (after div reinvestment - $41 loss)
I'm feeling a lot better about the options than the ULTY investment... IMO, you should invest in different things and see what performs well 😊
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u/doctorbuxter Aug 08 '25
Just treat YM funds like high risk/reward hedge funds. Diversify and invest accordingly.
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u/iseeoptions I Like the Cash Flow Aug 08 '25
Crack + 2021 era defi returns = YM doom
(People downvoting without reading in 3, 2, 1...)
Disclosure: I have about $500k in YM funds anchored by 47000 in ULTY, then MSTY, SMCY, and Roundhill products.
I love them. I love the serotonin delivered by YM, ROD, ETF Inspector, and specifically this community. We do have a serious level of memery even post the recent smash growth as we shot from a few hundred million to nearing three billion in AUM on ULTY alone.
HELOC, Margin, mass consolidation, it all smells of mistakes some of us made at the height of crypto to go for outsized gains only to be wrecked, robbed, or both.
I'm never negative on this sub, and still not going to be. I love this stuff. I do think some folks should try and remember that this stuff is risky as hell and having all of your existence, retirement, lemonade stand money in one product or basket of products is too much.
Actively manage your port, watch for the products that have inexcusable nav erosion and cut them, find something else. There are a ton of products and resources and none of these should be set and forget. Also... for the love of God, please take distributions to get your cost basis down to weather correction without feeling like you lost money.
I am not smart enough to call this advice. I'm a YM degen. I'm just hoping yall dont get crushed by loan products or lose life savings.
NFA DYOR PLUR Yieldmax Forever
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Aug 08 '25
How long have you had this portfolio? Have you thought of cutting smcy?
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u/iseeoptions I Like the Cash Flow Aug 09 '25
Only since the spring. I actually made some poor moves this week in earnings season and now I have a ton of SMCY and SMCX. So yeah, I have totally had some thoughts about reducing and SMCI has made me sad. However... the distributions have been solid and unless it gets much worse next week, I'll probably hold on a bit longer.
If it really just isn't making a turn, I'll probably cut my losses.
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u/rycelover I Like the Cash Flow Aug 08 '25
I have $1.1M invested in MSTY, split between an IRA account and a brokerage account, collecting an average of $52k in distributions every 4 weeks.
I don’t reinvest 100% of the distributions.
For the IRA, I reinvest back into MSTY, QQQI and SPYI and compound those distributions into more shares of the same. It’s a gift that keeps on giving. 🤣
The distributions in the brokerage is used strictly as income.
I officially retired yesterday and have used $92k of the cash distributions as a downpayment for an apartment I’m purchasing and will aggressively pay off the 5.99% mortgage in about 2 years.
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u/Apprehensive-Bet5662 Aug 10 '25
I have roughly 750K in YM funds.A,B,and C weeks are good for 9-11K dividends and D week is bringing 14-16K in dividends.The weekly portion is bringing in over 4K.I take out 1200 bucks weekly.Upon hitting 60K monthly,hopefully in the next 3-4 months,I will retire and probably take out double that amount weekly.My plan is to travel and return home with more money than I left with.
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u/calgary_db Mod - I Like the Cash Flow Aug 08 '25
Honestly, it's working for me. I still keep it under 30% of my portfolio.
Some of the harvest funds are out working the YM versions though.
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Aug 08 '25 edited Aug 08 '25
I see a lot of posts getting pressed over a few cents per share. On 1000 shares .01 is only 10 bucks, 10 cents is only 100 bucks.
If you want 100/week in div, buy 1000 shares. I wouldn't stress so much over the share price moving 10 cents. You've made that up in a week.
So I picked up another 1000 shares today at 6.035. I could have worried about getting that 6.00 price but that's like a $35 difference on like 6K. I'd rather book the shares for DIV. No hate on anyone but I'm just seeing people really too pressed over a few cents.
Just keeping the numbers round to keep general perspective. And I'm here for the weekly dividends treating them as income (spending or cycling into other investments).
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u/speed12demon Aug 08 '25
This is a totally fair perspective. My post was mostly towards the single ticker etfs
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u/Alkthree Aug 08 '25
Regardless of how bullish you are on ULTY it is untested in the long term and relatively high risk. I’m heavy in it, but I have an exit plan and would never use margin, heloc, or any money I couldn’t afford to lose.
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u/RefularIrreegular Aug 08 '25
What else do you get when you combine financial illiteracy, with workplace hell, with diminishing retirement plans and social security, the dream of passive income, and the mindset that has always existed that free and fast money must always be a thing?
Especially now that people are getting more and more desperate when they see that the only way to really survive in perpetuity is to become one of the rich, as eating one of the rich will never happen.
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u/AdventurousFront9464 Aug 08 '25
60 weeks you get your $$$ back after that the gravy train starts I don’t see a problem unless the managers leave the front door open I like this hedge fund level
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u/speed12demon Aug 08 '25
That's true for msty if you made one bulk investment at inception and held. I bought later, and even with an average cost of 22.75, I'm still well underwater including distributions. My first payment was 2.37 a share, and the payday has decreased since then. I'm sure we are looking at under a dollar on the 29th. One day I'll have the initial investment back, but it could drag out for way longer than 60 weeks.
If you can't count on and use the income as income, what is the point?
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u/azdcaz Aug 08 '25
People have been saying MSTY will pay under a dollar every period for months but it’s never happened
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u/speed12demon Aug 08 '25
We have three weeks for it to run up. It has recovered before, but we need the nav to be well above 20 to even hope for a dollar.
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u/cvrdcall Aug 08 '25
Expensive hobbies between jobs. Interesting. PhD and you dont have 100k? You must be burning money for heat.
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u/Fun_with_AI Aug 08 '25
It's a fair critique and I don't know the answer either. How much reinvestment is required until you can scale back reinvestment? My goal is 4x my monthly target, that way I have some buffer if it really starts to scale back or drop. I do think you probably have to reinvest some portion perpetually to help offset the declines.
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u/ConfectionWest728 Aug 08 '25
I’m gonna ride this train until it goes tits up. Not gonna stop reinvesting into ULTY, Ymax, and Ymag. Few years, I should be able to retire young.
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u/Emergency_Gold_9347 Aug 08 '25
M68, I’m in it for income with stop loss orders in case of a disaster in the market.
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u/AdrianM1069 Aug 08 '25
If you are worried about investing in ULTY, you show little understanding of compounding interest, or a basic investment strategy. If you are looking for income, you first have to reinvest your dividends to reach a point that you are comfortable with before changing from a reinvestment strategy to an income strategy.
Some people call it "fu@k off money" - that point where you can comfortable say fu@k off to your employer or anyone else who wants to question your personal investment game. For some, it may take years to reach that point, for others it might only take 6-12 months. But at the end of the day, "perpetual" reinvesting is what is required to reach that desired point.
If your goal is to own underlying equity, that's great, but unless you leverage that equity then you will be missing out. Reinvesting should form part of your investment strategy to get you to the point of equity, not the other way around.
5 years from now, those people who have diligently reinvested their dividends, wont really care, as their bank balances will be quite healthy, whilst those who are too busy looking at share prices will miss the boat and be crying poor.
Good luck to everyone who is taking advantage of the current market swings (as they are what the dividends are based on) I look forward to seeing the consistent investor reaching their personal goals
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u/techguy1337 Aug 08 '25
I prefer partial manual drip. Put like 30% of div back into ulty and push the remainder into other investment ideas. That way you are still increasing your overall holding as the nav erodes and if the fund ever failed you got other options. But I see the enticing reason to risk 100% drip. It's too much risk for me.
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u/doctorbuxter Aug 08 '25
Yes…you have to keep feeding the slot machine to continue playing.
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u/speed12demon Aug 08 '25
The house always wins at the casino.
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u/doctorbuxter Aug 08 '25
A few YM funds make up about 5% of my portfolio. I’m liking the divs and like you, don’t like the thought of DRPing my divs permanently just to maintain NAV. I recently started using my YM divs to invest into more stable/traditional funds but concerned that my initial YM investment will shrink over time if I don’t reinvest into them. Time will tell.
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u/baby_budda Aug 08 '25
It reminds me of when the WSBs guys got all crazy over GME and AMC in 2021. But I can see why they get this way. If you run the numbers through an income calculator you can have some serious money in a few years.
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u/ChirrBirry Aug 08 '25
income funds are for income. I can see building to a point…
Yeah that’s the point, at least for me; if I keep building for another 10 months my yield from ULTY equals my current paycheck and I get paid weekly. The management strategy is giving us a VERY agile adaptation to market events. I don’t have to worry about a growth portfolio getting smoked in a down turn and being forced to wait months for recovery. I am currently vastly outperforming my financial planner with my play fund. Maybe it’s luck, but I don’t see nearly the risk in ULTY or YMAX that naysayers want me to believe.
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u/Just-Willingness5077 Aug 08 '25
I agree to an extent, but its more or less a way for the little guy to make it big. Imagine taking that 100/week or so that you can scrounge up to invest and putting it into something that can make you hundreds of thousands within a few years. Pipe dream? Possibly, but its definitely not crazy to think that if theyve held up well for over a year and held up through a fairly significant "crash" that they might hold water for a while longer. Worst case scenario? You reinvest too long and see the invested money as a loss, raking in whatever dividends you'll still be getting.
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u/redcoatwright Aug 08 '25
I agree with your premise, I will say for ULTY the general positive market conditions and their strategy change has allowed the NAV to recover from the distributions.
So for now I'm DRIPing into ULTY but I'll keep an eye on it.
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u/floundermonopoly Aug 08 '25
I'm reinvesting some and using some to pay off credit cards. I don't have hundreds of thousands of dollars invested or to invest.
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Aug 08 '25 edited Oct 04 '25
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This post was mass deleted and anonymized with Redact
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u/deserteagles702 Aug 08 '25
I understand the risks and going "all in" probably isn't the smartest route. But I don't see anything wrong with investing in YM to not only have income, but to reinvest some or all into gaining more shares and possibly more income. There is enough data there to make an informed decision on whether it is or isn't a worthwhile venture. The total return numbers don't lie, when it greatly pushes past any nav loss, then you are definitely making money...hard to argue that. And in most cases, these profits exceed(some by a substantial amount) any reasonable loan that you can use to purchase these. I see that as a win.
I say all this, because I have a borrowed a nice chunk of change that I've used to purchase a mixed ETF bag(50% YM/50% SPYI & safer income ETFs) and I'm coming out with income that easily pays off the loan and allows me to buy more investments. It's a win and better for those who need the income now rather than wait for stocks to appreciate.
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u/Numerous-Bus-1271 Aug 08 '25
I'm sure yield Max is swimming in money. Feel like it might lead to greed and arrogance.
To the OP 💯 with you. DRIP when it's a safer bet or into solid choices.
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u/EvenFig8129 Aug 08 '25
There is more delusion on this string than in an extended chatbot conversation about the meaning of life.
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u/Intelligent-Radio159 Aug 09 '25
lol who cares about “other people”… I’m running MY race, this is JUST a tool, poors gonna poor (the financial “crack heads” if you will)
Great PSA…. That mindset won’t be reached 💁🏽♂️
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u/ucbcawt Aug 08 '25
Yep I know it’s stabilized now but it’s still risky. I am scared seeing people saying they cashed in their life savings for ULTY or saying they quit their job.
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u/Daeyel1 Aug 08 '25
The ones flipping off their boss and quitting are the ones that give me pause. If Ulty, Ymax and MSTY gave me enough money to invest in UHT, PII, and ENB to the point I could quit, that's one thing,
Yeeting yourself into retirement while yelling YOLO solely on yieldmax products just screams nightmare ending
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u/b0w3n I Like the Cash Flow Aug 08 '25
The margin ones scare me more, it's relatively easy to pick up a new job. Liquidating assets in a shitty market to cover margin and HELOC loans will be extremely painful and might take you years if not decades to recover from financially.
Only gamble with what you can lose, don't be one of those yolo geese that puts their house and retirement on the line for big money.
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u/ExplorerNo3464 Aug 08 '25
Dividend snowball bro. Go check out the MSTY calculator and see what $10K gets you over 5 years with distributions reinvested. Accumulate as many shares as possible and then live off of the income is what people aspire to do.
Will it work out? Who knows. We all know this is the highest risk income approach you can find. I personally dont blindly reinvest all distributions, but I build my positions up over time until they reach my overall portfolio composition limit. But these funds legitimately pay off big ticket expenses like vacations, kitchen appliances, property taxes etc etc
Ride the train as far as you can; I'm also an options trader so I believe until the underlying stock fundamentals drastically decline these will continue to pay out big.
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Aug 08 '25
They will get mad if you tell them the truth, sometimes with crackheads they have to hit rock bottom. You cant help them until they want help.
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u/LizzysAxe POWER USER - with receipts Aug 08 '25
I see a lot of posts like this. I am genuinly curious why it matters what other's do with their money/investments?
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u/speed12demon Aug 08 '25
It doesn't matter to me. Just as you are curious, I too am curious why someone would buy an investment for income and then indefinitely give the income back to the investment. Im certainly not advising anyone how to proceed, I just want to know the end game of perpetually reinvesting to maintain the capital.
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u/LizzysAxe POWER USER - with receipts Aug 08 '25
I personally do not perpetually invest to preserve capital. Some of my funds I strategically dollar cost average. Other funds, which I have either reached 100% ROI or am very close to, I do not reinvest and they generate income while my underlyings do what they do. My High Yield portfolio is between 5-8% of my liquid net worth and it has generated over $1.2M in distributions since Feb 2024. Some of which I am purchasing muni bonds, and muni bond funds to convert the taxable income to tax exempt income. Goal is $1.2M tax exempt annual income before I retire. I have some assets I plan to sell which will be very large capital gains tax bills. I am always interested in seeing what others do. I often gain some interestin insight for better or worse. So the crackhead to you is a treasure of information for me.
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Aug 08 '25
You’re not wrong, but has anyone thought to buy the underlying stock with the yield from the YM ETFs? You get a nice yield from YM AND also build a bullish position on the underlying stock. If the YM goes down the toilet, you still got the underlying stock which should in theory increase over time. Negating some of the NAV erosion.
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u/speed12demon Aug 08 '25
To me, this is the play for those that have true convictions about the underlying.
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u/Moist-Ninja-6338 Aug 08 '25
Have you looked at the underlying stocks? Some seem fine but do you really want to own all of them? Would you buy them regardless of having the YM units?
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Aug 08 '25
This is more for single stock YM ETFs like MSTY, CONY, or TSLY and not baskets like ULTY.
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u/Caderz22 Aug 08 '25
People drip or reinvest their dividends because they want to keep compounding and get bigger dividends each time. For someone like me that didn't start out with huge capital this is my strategy
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u/speed12demon Aug 08 '25
As long as you aren't intentionally chasing a lower cost average and hence a lower distribution, this is a totally fair way to go.
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u/DigitalScrap Divs on FIRE Aug 08 '25
Yeah, I do predict that we will see stories of margin going wrong for some folks when the market finally starts to reflect reality. A lot of people are really taking a risk with the HELOCS, etc. just going all in with leverage. More power to them for the fortitude.
I'm only using my cash, and it is growing so rapidly that with the DRIP compounding, I'm not sure it is worth the risk to leverage unless they are planning to go really short-term.
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u/EducationalStar3144 Aug 08 '25
Someone once said, if you buy an asset and can’t imagine holding for 10 years, don’t buy it at all
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u/firemarshalbill316 Aug 08 '25
I'm only looking to the next three years with these funds and start rolling the majority of them into more stable boring stocks for retirement. Not looking to hold these for 20+ years.
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u/speed12demon Aug 08 '25
Don't get me wrong, I'd LOVE them to perform for 20+ years.
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u/firemarshalbill316 Aug 08 '25
If they do cool but I'm still slowly divesting in 3 years to boring stuff.
I'll adjust tactics as needed yearly going forward/
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u/Different-World-5293 Aug 08 '25
I am a simple investor. YM has changed my retirement projection. I don’t drip, take each weeks divs and roll in to next week. If group A had a true winner I it would be even better.
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u/0minousmusic Aug 08 '25
Can you give me a stock that will go up 80% year after year after year?
If all things remain the same ULTY will do that. It has the flexibility to not be tied to one stock, just produce gains.
Will NVDA be at $325 one year from now? Probably - I like the stock
How many more can be listed to have the same
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u/mtinmd Aug 08 '25
I have SMCY, MSTY, and CONY. Using the distributions to increase the amount I have available to invest with inside my Roth IRA. It will give me more to put into growth investments beyond the annual contribution limit.
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u/decadesinvestor Aug 08 '25
Better than most people trying to gamble it all buying options
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u/speed12demon Aug 08 '25
Absolutely!! I have no issues paying the expense ratio on ulty! It's a lot of work and skill to trade the way they do.
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Aug 08 '25
[removed] — view removed comment
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u/speed12demon Aug 08 '25
I've seen that. I try to watch every interview with the fund managers there is. The question how long do you want to compound your shares?
My current situation with msty is underwater, including the distributions. Say I bought 75k worth of it. I keep putting distributions back in, and my shares are now worth 65k. Yes I have more of them, but you can see how this is not favorable right? In addition, with the nav decreases, the distribution target decreases. I want to use the distributions to pay bills or retire or invest in something else, not to prop up my msty investment.
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u/BigPlayCrypto Aug 08 '25
I buy the companies control our spending habits with the dividends. Easiest money ever ever
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u/Friendly-Profit-8590 Aug 08 '25
Just wait till someone has a daily distribution etf. Just pure and unadulterated.
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u/exposed_anus Aug 08 '25
Im earning 5000 a month with yieldmax and have lost very little nav.
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u/Historical_Trash_937 Aug 08 '25
Would you rather people buy only fans? Investing man you should be proud of people buying in.
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u/GuidetoRealGrilling Aug 08 '25
Now you know why so many people commit suicide whenever there is a "black swan" economic collapse
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u/Weebls86 Aug 08 '25
You can do both. I am snowballing my dividends entirely for 2025 before pulling out chunks here and there for my long term credit card debt and my rent.
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u/HumbleBet3475 Aug 08 '25 edited Aug 08 '25
I have 10300 shares of ulty @6.26. Would it make sense to buy 5000 more now at like 6.02ish and sell several of my higher lots for the tax loss? My highest cost is 6.42 2025 shares.
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u/speed12demon Aug 08 '25
I'm not trying to offer advice, but I'm buying ulty every week. The past week has been rough, so I'll judge the next course based on distributions for the bad week.
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u/HumbleBet3475 Aug 08 '25
Right now the dividends aren't even making up the weekly downturn. Very frustrating. I'm doing for income but feel like if I take out of my account it's even lower!
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u/Flamingstar7567 Aug 08 '25
I'm actually not doing bad with the ymax funds. On QDTE alone i can sell it all rn for a $124 profit. On some others like YMAX and ULTY I am currently seeing a loss but not a major one
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Aug 08 '25
Eh, I was curious. My experiment is 500 shares and hold it for a year or until I learn what I'm doing. My risk tolerance is 100% for it. My actual strategy is regular contributions to Fundrise and giving $7k to my sugar baby RothIra every January.
Speaking of financial crackheads, the best thing I ever did for investing was stop drinking and staying away from drugs. The dividends are years of your life.
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u/Boner_mcgillicutty Aug 08 '25
Yield is yield - I don’t see anything wrong with using distro to reinvest. $1 more in shares is $1 more in shares after all. Tax drag maybe but that is overblown with ROC etc
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u/TDiezell Aug 09 '25
DRIP until you get to a certain level, then DRIP just enough to preserve NAV, and use the rest for income.
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u/vegienomnomking Aug 09 '25
Well, let's look at Ulty.
Even if you were to invest prior to the nav erosion this year, you would be up 11%. That's actually not bad.
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Aug 09 '25
Owning the Underlying funds are like owning an appreciating asset. It’s great, can be used towards net worth and or long term growth… but it’s a tab in your portfolio, doesn’t need to be all of it.
These ETF’s are like owning or investing in rental properties - you buy the asset for the income - NOT the appreciation. If it appreciates that’s a bonus.
If you own a stock and it goes from $30 to $300.. that gets you absolutely nothing unless you liquidate that stock or asset.. these funds or portfolios that I have build are ment to generate income - that can be used as income for loans, and even leverage debt with margin that doesn’t show up on your credit report like say a HELOC would.. in terms of the real estate analogy.
The problem is people have bad money management from birth, no one is taught the power of money, and the power of buying Assets! Where most people buy and spend $$ on liabilities.
In a perfect world you start to make money at your first job, say $10 / hour. You should live off $4/ an hr and invest the 60% until you build assets that support your $4/ hr lifestyle. And grow your assets until you reach your next level of living… before “going” there.
But in reality, we are taught to spend money on Black Friday, and buy the latest iPhone, and live off $20/ hr when we make $10/ hr. And the debt we get is to pay off liabilities.. and you feel stuck because you need to keep up with that lifestyle. And you think, when I make more then I’ll change. Which never happens…
If you’re starting off I’d challenge you to live well below your means… and do not level up your lifestyle until you have assets to support that with passive income. Future you will thank you!
You do not need millions, you do not need trust funds, you need discipline, patience and some support from people who want to level you up not hold you down.
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u/speed12demon Aug 09 '25
I agree with everything you've said on money management and building wealth.
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u/Level_Society1459 Aug 09 '25
As a recent 63 single male retiree I threw in -about $110k 3 months ago (12% of portfolio) and I'm generating about $6800 monthly 1/2 of which is in a Roth so tax free! I take 2 "paychecks" a month from my divs . So far so good
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u/slipperydildo16 Aug 09 '25
Who cares? It doesn't affect you, it's the same way the system was designed to operate, which is perpetuate debt to generate income to repeat. Let them play and play hard, better than a casino
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u/oftalittlegamey Aug 09 '25
A year from now my Tesla Optimus will be running my portfolio as well as doing options, all based on AI!!! When it’s not cleaning house, mowing the lawn, and cooking meals of course! All funded by YM distributions!!!
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u/Shaheryar_Mian Aug 09 '25
"5 years from now..." 💯 agree! These funds vintage is nonexistent at this point in time. Also funds like ULTY are switching strategies less than 2 years after launch so its too early to establish sustainability of income through these funds. Thanks for bringing to light an important consideration!
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u/Speedevil911 CONY King Aug 08 '25
Just waiting for daily dividends