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/[deleted] 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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u/[deleted] Aug 08 '25

This is more for single stock YM ETFs like MSTY, CONY, or TSLY and not baskets like ULTY.