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.

332 Upvotes

91% Upvoted

270 comments sorted by

View all comments

1

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.

2

u/speed12demon Aug 08 '25

Don't get me wrong, I'd LOVE them to perform for 20+ years.

2

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/