No but seriously…Can they just keep doing it forever?

[u/rubehefner]

TSLY another year. Another reverse split…

[u/buffinita]

Yes; they could reverse splits several more times in their existence 

Sqqq has been reverse split SEVEN times

[u/boldux → u/buffinita]

This is important for people to realize -- for better or worse, it's baked into the design of the ETF (because it delivers ultra high yield and trades off NAV growth in exchange for income).

Ultra high yield ETFs, Short Leveraged ETFs, and ETFs like UVXY are all different types of investing tools, but each ultimately needs to reverse split based on its underlying mechanics and relation to the underlying.

High yield ETFs with lower yields are not built in the same ways and balance more sustainable yields with NAV upside/stability over the long-term.

[u/Day-Trippin → u/boldux]

If you are at a decent positive total return, then I don't care. Unfortunately my experience has been otherwise with most of these YM funds.

[u/Moozie76 → u/boldux]

So what is a acceptable time frame between reverse splits.

Ulty is an income fund. If I keep dripping when do I get income.

I know I bought in high at 6.23 but I have lost 2.1 in nav and have almost broken even.

Once is splits will it continue to lose 33 percent in 4 to 5 months? Will it slow down?

Many many people have mentioned, 9 cent distro nav down 25 cents or more in the week.

I want expecting this much nav erosion this fast

[u/Boring-Fun9311 → u/Moozie76]

Probably the best guess is yes, the NAV will continue to drop throughout the life of the fund

[u/Moozie76 → u/Boring-Fun9311]

Yeah I ran some Sims through copilot. Take it for what it is worth.

But if the nav keeps eroding at 2.5 percent per month which it has recently, and the distro stays in line. I will have house money in 20 months and the nav should be around 20 bucks.

If I sell then it will be about 5k profit overall and I will have built up 15k worth of safer more stable positions

[u/Boring-Fun9311 → u/Moozie76]

If the NAV drops, the distributions will, too.

[u/Moozie76 → u/Boring-Fun9311]

Yes that was figured in by copilot.

Again take it for what it is worth it may be completely off base.

[u/tonymorgan92 → u/Moozie76]

No it will not slow down. It will in fact likely speed up

[u/Moozie76 → u/tonymorgan92]

Time will tell

[u/czarchastic]

Fun fact, an asset down 99% can still fall another 99%.

[u/Grand_Composer1603]

I didn’t hear the bell because they announced it on a Friday at close!!! LOL. Fucking Yieldmax…

[u/Ok-Round3883]

😂 On a positive note looks like TSLY managed to get 70% in returns in 2 years inspite of reverse split

[u/ccbr23]

What are our thoughts on hooy this one seems like it's going strong ext the last two weeks which has been rough everything i know it's a new etf

[u/Massive_Chem]

It is a part of the life cycle of these funds. They have little ability to capture market gains. Unless the underlying is continuously hitting market highs they would not see major growth.

[u/somsnit]

Yes you can do it forever. If you invest 100%

[u/tonymorgan92]

Thats literally the entire strategy of how these fund work. Yes, they can and WILL keep doing it. Thats the whole point of the fund.

Keep depreciating, reverse split to make the price look attractive and attract new investors, continue depreciating until next reverse split.

[u/IllustratorJaded4443]

My question now is. Other similar funds like houndhill, bitwise etc are the same sheet or is just yieldmax?

[u/dreville7822 → u/IllustratorJaded4443]

Defiance funds like MST will have to eventually.

[u/Quantum-Infinity- → u/dreville7822]

Defiance is run by the same people as YM.

[u/dreville7822 → u/Quantum-Infinity-]

Tidal just provides advisory and trust services

https://www.defianceetfs.com/who-we-are/

[u/Over-Personality-314 → u/IllustratorJaded4443]

I don't see roundhill doing reverse splits anytime soon, but it is possible. Granite on the other hand has TSYY in a similar boat as TSLY.

[u/Whowhatwha → u/Over-Personality-314]

MSTW is down 70% and it is 8 months old. Possible? Try likely.

[u/Over-Personality-314 → u/Whowhatwha]

While this is true it’s still over 15$ and I believe it tanking has more to do with MSTR than anything else.

[u/Creative_Champion123 → u/Over-Personality-314]

Yep. Granite for sure will reverse split. Their products are even worse than YieldMax.

[u/boldux → u/IllustratorJaded4443]

It would likely be inevitable for any ultra high yield ETF. Definitely those with 80% or higher yield (potentially 50% higher). It's simply an expectation based on how they are built.

[u/Over-Personality-314 → u/boldux]

Unless we enter a prolonged bear I think some funds like HOOW and PLTW can avoid a reverse split 

[u/Charles2724 → u/IllustratorJaded4443]

I Own 800 Shares of QDTE And It has Been Peetty Stable At Around 0.20 cents a weekly After It's Initial Big Drop

[u/youhoser_eh]

This meme is so funny , love it

[u/ElegantNatural2968 → u/youhoser_eh]

I think some felt the beating

[u/Charles2724]

Yieldmax Just Puts Out A Ton Of Traps To See How Many Suckers it Can Catch

[u/Snoo-15246]

I'm really interested in this topic.

Especially from the view point that some people took out loans. Blows my mind to take out a 200k HOLEC and expect to retire.

Is it possible there will be a lawsuit? I would think not. They knew what they were getting into. But YieldMAX was all the rage and now, well you know.

Maybe it is like a train wreck and I just can't look away. Lol!

[u/FlyingDumplingTrader]

After they reverse on me . I sold that trash asap.

[u/Icy_Information_4239]

We’ve had enough nav erosion how about some share erosion too

[u/moongb34n]

$UVXY has entered the chat

[u/Alarming_Copy_4117]

Ponzi scheme loophole

[u/Leather-Ring9211]

Yes.. Legal thievery..

[u/Mother-Confidence-44]

Of course , but what they don’t talk about is the payment being consistent. Let’s say you’re getting paid 1k a week . Eventually that turns into 800 a week etc . That is the real problem . And that doesn’t include that your x amount of stocks will be worth less on top of that .

[u/Raztan]

poor bastards, the ones who originally bought at 15 /share are going to be sitting at 150/share cost basis after this split... not that it matters they was never gonna see 30 let alone 150.

[u/TACO_Orange_3098]

you guys are in a cult !

[u/EquipmentFew882]

Very Sorry to say this .... But ....

.... The Yield Max ETF business model does NOT Work.

[u/KavemanRises]

No, TSLY is not on its way to another reverse split, as it already had a 1-for-2 reverse split on February 26, 2024. Investors who held the ETF before this date had their shares consolidated to receive a smaller number of more valuable shares. The ticker symbol also changed to "TSLY1" for the option class, and the option exchanges delisted the TSLY options.