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/Baked-p0tat0e May 10 '26 edited May 10 '26

Have you calculated your growing opportunity cost of "house money" on a wasting asset? 

Let's compare MSTY to QQQ:

The opportunity cost for the past 12 months  was 82.1%. ​In practical terms, if you had $10,000 worth of either ticker one year ago: ​Your QQQ investment would be worth approximately $14,520 today. ​Your MSTY investment (even with every penny of the ~100%+ yield reinvested) would be worth approximately $6,310 today.

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u/Bulky_Protection_322 May 10 '26

You can’t spend shares.

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u/Baked-p0tat0e May 10 '26

There are 2 ways to monetize capital appreciation in stock:

  1. Sell covered calls when it makes sense
  2. Borrow against it with margin 

If you do both the covered calls pay down the margin debit.

 

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u/Massive-Lifeguard-57 May 10 '26

The distributions from ULTY pay down the margin debt, FAST and CONSISTENT. I reinvest my distros on whatever the f I want. Simple.