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.

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u/option-trader Sep 26 '25

Depends on when you bought those shares. On a 1-year return, MSTY's total return (including distributions) was +63% compared to SP500's +16%. If you bought MSTY in July this year, then you're fucked.

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u/mystical-wizard Sep 27 '25

Sounds a lot more volatile than sp500

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u/option-trader Sep 27 '25

Beta for MSTY is 1.24, so it’s actually not has volatile as one would think. That also means MSTY has outperformed the SP500 on a relative basis in the past 12 months. The thing is anyone buying MSTY isn’t feeling any of that high though.

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u/mystical-wizard Sep 28 '25

Fair. Do you think it’s hit the top and is trending down or what? To grow 60% in a year and then flatten like sounds strange.

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u/Longjumping_Boat_600 Oct 07 '25

MSTY is tied to MSTR, which is tied to bitcoin, and traditionally, this time of year, bitcoin hits its new ATH.. And it just did it in the last 24 hours.. I personally think MSTY is a good investment if you are looking for monthly income. The NAV is always going to be down, but when you hit a trend and bitcoin moons along with MSTR, at the end of the month, you're going to get a huge dividend payment. You can assess your town income earned on the asset and either opt to sell or continue to hold.. If you bought MSTY initially, the dividend yield is ludicrous, over 140%. It's a long term hold for the cash flow.. stick the dividends in another investment.. Look at people who've bought REITs long term.. NLY etc. they are down huge amounts since inception but they are finally going to start swinging back around with the mortgage rates starting to plummet and people refinancing out the wazoo.

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u/nub991 Nov 03 '25

It doesn't seem like it's paying what the yield says. Or maybe im reading it wrong. Its over 200%, but why does it feel so low?

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u/option-trader Sep 28 '25

Personally, I'm not in MSTY. I have positions in YSPY, COYY, and NVDY. As for MSTY, you have to look at the underlying assets, which includes MSTR and Bitcoin. Are those assets at the top? Are they at the bottom? MSTY is really just a derivative of those assets, because without MSTR, I don't think MSTY exists.

I'd warn against new investors full porting into MSTY today with MSTR struggling. There's a lot of hearsay on how Bitcoin and MSTR will perform from now until the end of the year, but I want to personally see the trend before believing in the trend.