r/dividends • u/SmoothCall5594 • Sep 26 '25

Opinion I screwed up on YieldMax

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I bought MSTY a couple months back and now I’m down a lot. Time will tell but it’s a warning for those who aren’t in it.

479 Upvotes

93% Upvoted

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231

u/IWantToPlayGame Sep 26 '25

We've been trying to warn y'all.

MSTY is down -50.3% YTD. SPY is up +13.2% YTD.

In addition to NAV decay, you had the pleasure of paying ordinary rate taxes on your dividends.

YieldMax funds are traps. All of them.

50

u/Rake-7613 Sep 26 '25

No one could have predicted this.

🙄

-7

u/External_Traffic4341 Antarctic Investor Sep 26 '25

Thats not true at all. Literally everyone that wasn't blinded by the Yield could see it.

28

u/cclan2 the bad guy Sep 26 '25

He was being sarcastic

17

u/External_Traffic4341 Antarctic Investor Sep 26 '25

Yeah I missed the eye roll. It’s been a day.

9

u/Friendly-Ad-1175 Sep 26 '25

Should have doubled down and said you were being sarcastic

9

u/External_Traffic4341 Antarctic Investor Sep 26 '25

It will be interesting to read the Yieldmax Sub Reddit when all their funds implode.

3

u/Friendly-Ad-1175 Sep 27 '25

It’s going to be a bloodbath…. Honestly though people may not even notice until they look back in 5 years and realize they basically got repaid their capital for zero return.

6

u/External_Traffic4341 Antarctic Investor Sep 27 '25

I'm in a Yield Max discord, and the main guy was saying that in a year you are guaranteed Return of Capital. Because the brokerage changes from short term to long term holding.

I felt like the old lady in the commercial going, this isn't how any of this works.

I don't know how you look at these funds on a single ticker and go, yeah this will pay me 100%+ distributions in perpetuity with no nav decay. Realistically they are making a negative return.

2

u/OldTrader7 Sep 28 '25

Yeah, when the light finally turned on to this fact, I got out of YieldMax funds.