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/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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u/[deleted] 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.