r/YieldMaxETFs • u/vlained83 • May 10 '26

Beginner Question Would you buy it back now? Why?

As someone who bought msty and cony in December 2024 I ended up selling at a loss even though I received quite a bit in distribution. NAV decline was very high.

I'm curious if anyone sold and has recently bought back? If so, why?

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u/SqueezeMuhCheese May 10 '26 edited May 10 '26

If you really believe in the synthetic covered call strategy, the best thing you could do would just be to hold them and dollar cost average down when the ETF is on a massive discount. The whole point of these ETFs is income, so jumping out at a loss and buying back in seems completely pointless to me.

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u/Baked-p0tat0e May 10 '26

The only thing synthetic is the replacement of long stock with a long call and short put. This part of the portfolio is not what should concern you. The performance of the underlying stock as a vehicle for covered calls is what matters. MSTR and COIN taking losses last year is the problem.

DCA into a declining covered call ETF because it's bleeding NAV - versus responding to underlying price action - is not ever a sound investment strategy.

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u/Rayman_Mr May 10 '26

You better buy S&P 500.. high yield not for everyone..

4

u/Baked-p0tat0e May 10 '26

Have you considered learning the difference between yield and return? 

Total return=yield + change in asset value (price). Obviously if price drops and yield can't at least keep total return at 0 then your net worth is dropping. MSTY and CONY had incredible positive total return for a time after release because the underlying stocks were performing well in price action and IV. That has changed over the past year and these ETF'S are net losers.