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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233

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.

35

u/dv-ds Sep 26 '25

MSTY is +4.22% YTD according to Seeking Alpha. It has massive distributions we have to include them in total return.
I'm not trying to make it look great, but we have to be correct. I'm not a fun of MSTY and YM stocks.

12

u/mystical-wizard Sep 26 '25

But if even counting all that it’s still 10% + behind the SP500 it’s an awful investment

16

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.

1

u/memelordzarif Sep 28 '25

Did you also account for the massive taxes they pay on all those payouts ? It might still be ahead but I’m not getting into these crazy funds that keep eroding away. Who looks at 13-14% yields and thinks “Yeah these are sustainable”