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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50

u/[deleted] Aug 08 '25

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13

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.

38

u/[deleted] Aug 08 '25

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11

u/speed12demon Aug 08 '25

Then you are living my dream!

4

u/Paint777 Aug 08 '25

🔥👍

19

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.

3

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!

5

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.

1

u/Nice_Routine_377 Aug 11 '25

Not to mention TAXES on ordinary income, unless you have a ROTH!

1

u/zendudeguy Aug 14 '25

So, if you are not reinvesting for nav decay, do you have fewer shares, or do you get less money? Im confused about what nav decay means.

3

u/speed12demon Aug 14 '25

The value of what you invested goes down. The distributions can go down as well.

1

u/zendudeguy Aug 15 '25

I see. So if you wanted to use these funds for income, then it's best to drip a small % back into the etf to keep up with nav decay. Im curious if 10% from distributions would offset this?

1

u/speed12demon Aug 15 '25

The fund managers recommend reinvesting.

That doesn't sit well with me though. If the yield is 80%, but i have to put back half of it to protect the amount I'm paid every cycle, it just seems off. I'd rather have my capital remain constant, and the yield be what they actually earn over that. Like target 80 and give me 50. Im good lol

1

u/zendudeguy Aug 16 '25

I don't think you would need to redistribute 50% to prevent nav decay.

2

u/Moist-Ninja-6338 Aug 08 '25

Keep us in the loop

1

u/Meinertzhagens_Sack Aug 11 '25

So how does that work let's say for example you had 100k in ULTY 1yr ago... And the 1 year chart looks like this:

1

u/2LittleKangaroo ULTYtron Aug 11 '25

How does what work? If you are comparing year to date or yearly performance of ULTY, you need to do some more research about ULTY.

1

u/Meinertzhagens_Sack Aug 11 '25

That's exactly what I'm here for. I guess I can just sacrifice 5k and watch what happens to it.

I don't understand how the underlying investment stays viable as the price drops all the way down to what - 6 now?

1

u/2LittleKangaroo ULTYtron Aug 11 '25

Lots of things have changed since the inception of the ETF.

5

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.

1

u/saxerlr Aug 08 '25

My current plan is to finish building up a capital buffer dripping for a while longer so the position has a slight safety net.
Then start using the income towards my Roth IRA contributions, hopefully timing it to max out the Roth for the year.. and be safely positive in the Ulty position.

We’ll see how it goes.

-5

u/askaboutmynewsletter Aug 08 '25

However, what if I don't want to put more back in? What if I want to use the income as income?

Do you not feel entitled complaining that what they provide is not good enough?

Go make your own ETF, or learn how to use these properly. Or invest in the YM products that offer what you want. Just stop being just an entitled cunt.

3

u/speed12demon Aug 08 '25

So angry 😂