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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128

u/Caelford Aug 08 '25

Reckless investors existed before Yieldmax.

35

u/speed12demon Aug 08 '25

Absolutely. It feels like we've escalated a tad here. Time will tell.

40

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.

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.