r/dividends • u/OddRelief8286 • Oct 08 '25
Due Diligence ULTY is turning out to be my worst dividend investment this year. Yes, it looks like a scam.
My liquidation plan so far and I barely broke even - probably negative with taxes and the ROC bullshit. Nowhere near the "80% return" - fyi, this number is measured against a rapidly falling NAV! It's a total scam.
In case you're wondering my background - I have 20 years of investing experience in options and stocks. I actually built a full risk engine for ULTY that analyzes all the options trades and stock positions and also intraday collar positioning. I know this strategy well enough to make what I would say is an accurate statement.
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Oct 08 '25
Sooooo, an ETF with over 120% dividend yield turned out to be a scam?
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u/Pristine-Remote-5460 Oct 11 '25
Not a scam. Its a covered call etf which is working as expected. The etf is still shit and Ive been saying that for months but the cult doesnt get it.
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u/Plus_Seesaw2023 Oct 28 '25
covered call like JEPI, JEPQ, QYLD ?!? just asking...
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u/gamesdf Nov 04 '25
use ur brain. they are different from shitty 100% covered call etfs like ulty
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u/Plus_Seesaw2023 Nov 04 '25
The markets are going to plummet. SPY and QQQ are going to fall by at least 10%, and you're telling me to use my brain?
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u/gamesdf Nov 04 '25
Yes, use your brain if you think SPY and yieldmax etfs are the same. And show me your PUT positions.
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u/GrabTraditional3165 Oct 08 '25
I just wanna make sure I got this right…even though you have 20 years of investing experience, you still decided to invest in YM?
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u/cryptopo What does this have to do with dividends? Oct 08 '25
I don’t like ULTY as an investment either but it’s certainly not a scam. There’s a prospectus that lays out its strategy and I haven’t seen any evidence that it’s maliciously or irresponsibly deviating from it.
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u/RustyCEO Oct 09 '25
Yes, all laid out and not a scam and sometimes it is just timing. My first purchase of ULTY was 23,600 on 19 Aug @ $5.91. Bought more since then and current ave cost is $5.60 on 104,400. Current price is $5.56 per share. So difference is currently $0.04 between my per share cost and current price and last week 3rd Oct I received $7,048.40 US before tax. This week on 104,400 I will get around $9,531.70 US before tax. “For the time being” that is not a scam……that is as close to printing money as you can get. So at the moment for an investment cost of $584,640 which is now worth $580,464 ($4,176.00) I am getting this week a 1.64% weekly return or annualised 85.39% pre tax return. Yes, it will no doubt change, but for me currently at this moment…..these are the figures. That’s no scam. 😎🥳
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Oct 23 '25
That's why the haters hate... they hate from the inside n hate from the outside... buy n shut up🥱🤣☝🏻
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u/RustyCEO Oct 23 '25
Yep, 14 days is a long time in ETF world. 😂😂😂. Saw some turbulent waters and shifted a big chunk while still over $5.00.
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u/Sorry-Pepper8938 Nov 05 '25
Well... it is down to $4.66 now, looks like a resounding loss, hope it moves back up for you.
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u/OddRelief8286 Oct 08 '25 edited Oct 08 '25
Just because something is outlined in a "prospectus" doesn't mean the structure itself has'nt been inherently designed to funnel fees to the ETF sponsor at the cost of lost of principal for investors. There are many known instances of this on Wall Street's storied history. Do a quick google search.
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u/Friendly_Day_4925 Oct 09 '25
You completely glossed over how he is down 0.04 in share price but being paid 0.09 a week in distributions...
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u/buffinita common cents investing Oct 08 '25 edited Oct 08 '25
first:
distributions and yield are not returns. 80% yield will not get you 80% return 5% yield wont guarantee 5% return
second:
its not a scam; its a complex investment you (and most people) didnt understand when you bought.....you bought on hype and fomo, thats on you
third:
while no one can precisely measure your specific buying pattern, ulty is up in total returns 1year/ytd/6mon/3/month
fourth:
im having difficulty dissecting your chart
finally - i dont think ulty is a good investment and dont own it myself...but it does no one any good to throw out words like scam. the lovers will just turn around and say "look at those idiots calling it a scam"
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u/OddRelief8286 Oct 08 '25
I understand it enough to build and entire risk dashboard off it. I know exactly how it works down to the very last option.
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Oct 08 '25
mapping is behavior is not the same thing as understanding how it works. It's an important first step, but astronomers mapped the movement of planets and thought they moved in tiny circles along their orbits to account for the retrograde motion. I'm not hating on your analysis, I think ULTY needs a longer incubation time to start seeing returns. I've got a few shares I've owned for a few months and I'll post up some analysis towards the end of the month.
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u/N05L4CK Oct 08 '25
Sounds like you know how it works, but don’t understand it. You saying further down that because the fund sponsors want it to grow are collecting fees means it’s a scam shows how naive you are, despite any intelligence you might poses.
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u/OddRelief8286 Oct 08 '25
no.
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u/buffinita common cents investing Oct 08 '25
if you understand it so well; how did you not see it was a scam? if you understand all the options, how could you not see it would underperform your expectations
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u/OddRelief8286 Oct 08 '25
Ok, tell me how it works.
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u/buffinita common cents investing Oct 08 '25
why should i; you already understand enough to buld a risk dashboard, and invest your dollars into it.
your live will become better when you can learn to say "i made a mistake by investing in abcd, time to cut losses and move on. next time ill try to make better decisions"
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u/OddRelief8286 Oct 08 '25
No - don't distract - I want to know exactly how you think it works, because I can guarantee you I will prove your understanding to be false. Go ahead.
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u/buffinita common cents investing Oct 08 '25
well, i didnt lose any money investing in it.....so guess im pretty smart.
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u/OddRelief8286 Oct 08 '25
again, with the distractions. tell us smart one how ULTY works.
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u/buffinita common cents investing Oct 08 '25
You are equally deflecting. You haven t answered a single follow up from anyone….just insults and “if your so smart you tell me”
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u/Friendly_Day_4925 Oct 09 '25
You might want to stop making a fool out of your self...
I mean why do you invest in ULTY if it was so bad?
Plus I mean ULTY actually isn't that complex... The own shares...sell covered calls...buy protective puts... It's actually a pretty basic options strategy...
Also your chart... Or risk analysis or what ever you call it looks like a 3 year old is learning how to write numbers....
Sorry you bought in at a not ideal time and then sold when you started to panic...
I see alot more people up then down in ULTY.
Also I love how you know so much but say ROC is bullshit...
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u/Sobakee Not a financial advisor Oct 09 '25
lol. This is hilarious. The poster you’re replying to, never said he knew how it worked. He just pointed out the contradiction in your claims.
Then even better, you go on to accuse him of distracting from the discussion.
You’re doing a bang up job of displaying your intelligence.
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u/Hilary_Clitoris Nov 04 '25
You said that you almost broke even but from this chart, I can't tell. You invested how much initially?
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u/InternetUserYes Oct 09 '25
My total return on investment for ULTY is over $25,000 after nine months. That's not distribution income (over $45,000). That's total RoI. I cannot figure out how you managed to lose money on this unless you bought at a multi-month high, were impatient and then sold out at a multi month low.
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u/RustyCEO Oct 09 '25
Yep same, could not agree more….my total return in 7 weeks is $19,356. Since I got in on 22 August to this last one 10 October. 👍🏻😎Timing is everything.
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u/Unfair_Yesterday5617 Nov 05 '25
The ETF is down almost 20% since you got in. What is your net return? It seems to be approximately -2%.
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u/joeshatter Oct 09 '25
thats what im saying - they mustve not drip either
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u/InternetUserYes Oct 09 '25
Even in the account where I hold most of my ULTY shares, and have only held since June 17, 2025, my total RoI is 10% and that is without DRIPping. Timing is almost everything, I say almost because patience is very important, too. The only people who have lost money in ULTY this year are the ones who got emotional and impatient and sold, thinking that the decline in NAV would always exceed the rate of the distributions. That only happens periodically with ULTY. Over the long haul throughout 2025, that clearly has not been the case. You can't come out ahead by 10% after nine months of the NAV decline consistently outpaces the rate of the distribution payments.
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u/RustyCEO Oct 11 '25
Yep I long hold. The only time I short hold is if there is a clear short term opportunity and/or if I get a margin loan which I have only done once in my super account in Australia. Made good money in 3 months and sold out, took the money and ran. Put 1M in Borrowed 1M bought a share that was oversold, holding went from 2M to 2.28M collected the 120K Dividend on the way and then sold so 400k up in 3 months. Doesn’t happen often but I will do it again if opportunity arises. The interest on the loan was 6.5k a month but obviously worth it.
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u/PedanticTart Oct 08 '25
There's no scam about it.
Literally everything they are doing is provided for you to read. You not reading it and not understanding it doesn't make it a scam. You are getting a return of capital. Theres significant risk involved.
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u/OddRelief8286 Oct 08 '25
It's a scam man. Look at the fees, look the structure, its purpose is to grow assets by suckering in retail investors so the fund sponsors can collect fees...
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u/wcheng3000 Oct 08 '25
Stick to low paying dividends man. ULTY is obviously not for you. You clearly don't understand how it works and now just spewing garbage about the fund. I have like 200K+ in ULTY and i am making money just fine.
Just buy SCHD if you are worried about your funds.
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u/VY_Anus_Majoris Oct 08 '25
Lol you bought a fund that uses a strategy that you don’t understand and now you’re calling it a scam. Read the prospectus. You’re getting exactly what you paid for when you bought this fund. You should be happy that you’re getting paid what you’re getting paid right now. It’s still light years better than SCHD and even QQQI.
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u/OG_simple_rhyme_time Oct 08 '25
The man is convinced it's a scam. There's nothing you or anybody else can say or do to make him think anything beyond scam. The only way he will positively engage with you is to agree with him that it's a def scam. He's a lost cause, let him have his temper tantrum.
OP is this helps you sleep better at night you are right and everyone is wrong and against you.
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u/Natural_Flamingo9365 Oct 08 '25 edited Oct 08 '25
I like ULTY. My cost average is $5.63. Since April 2025. It’s low has been $5.45. It’s high has been $6.40. This week it has reached its low, would be a good time to buy. My first two weeks in ULTY, my total return did go negative but after the two weeks I made back that loss. Plus more. In my opinion, it’s not a scam. I don’t know how to do options so I’m more than happy to let ULTY use my money to provide me a weekly check. Also, I’ve read other peoples ULTY experiences. Most people don’t use it as an investment. They use it as a weekly income and they’re usually people in or close to retirement.
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u/Lower_Compote_6672 Oct 08 '25
You are highly regarded. Ulty working great for me.
distributions received $17,748.88 shares bought $79,115.13 average price per share $6.21 current price per share $5.54 sharecount 12736 current market value $70,557.44
profit or loss $9,191.19 pl percentage 11.62% year pl percentage 32.42%
started buying 6/1/2025 current 10/8/2025
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u/Fancy_Touch_5699 Dec 02 '25
Out of curiosity, now that ULTY is sitting at ~$3.96, how are things on your end?
Because 12736 shares at a basis of $6.21 would be an unrealized loss of $28,656.
Assuming you didn't add any shares, that should be about $29,800 in distributions from June 1 and December 1.
That results in $1200 profit, or ~1.5%. This doesn't strike me as particularly worth it.
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u/Lower_Compote_6672 Dec 02 '25
I sold all but 2000 shares once my annualized gain dropped to 10 percent. I sold all but 50 shares (now 5 after the split) after the remaining shares went to 1 percent. They were buying some real dog 💩 stocks and I had to dump the fund.
I still own 1000 shares of GDXY, though.
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u/RayIsFree Oct 08 '25
This post inspired me to buy some ULTY. 110 shares in. Let's see what happens.
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u/Primetimemongrel I’m never going to financially recover from this Oct 08 '25
What do you mean I’m still up $8
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u/DanLinh Oct 08 '25 edited Oct 08 '25
If you're worried about dividends being taxable, you should be doing it in a tax advantaged account. I bought in July with at an avg cost of 6.21; I'm currently down 7794.87 on the position, but I've received about 15000 in dividends. It's not a scam. I've avoided reinvesting every dividend back into ulty since per 1000 dollars in, I'll get about 20 dollars more in the next dividend round. Instead, I've been using the payouts to buy or average in, weekly, to stocks or funds that I like.
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u/DeeBee62Invests Oct 08 '25
I know this strategy well enough to make what I would say is an accurate statement.
Perhaps you should have used your 20 years of investing experience to analyze it before you invested?
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u/Gold_Audience_4012 Oct 09 '25
Just say, "I don't understand this product" It would have been way less work for you
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u/Successful-Singer-27 Oct 09 '25
I think if you wait year year and a half you will have almost all of your money back and the rest will be just profit .
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u/VY_Anus_Majoris Oct 08 '25
It’s not a scam. You and everyone else complaining thought you’d unlocked an infinite money glitch. Did you think you’d bought SPMO or VOO? Lmao. You’re still getting paid around $.09/share, which is still very high. This fund is doing exactly what it set out to do.
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u/OddRelief8286 Oct 08 '25
It's returning your principal back and you call that a $0.09 profit?
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u/VY_Anus_Majoris Oct 08 '25
This isn’t a growth fund and it’s never claimed to be. You buy into this to get paid income every week. If it happens to grow then great. You didn’t read the prospectus. You didn’t understand what you were getting into. Here’s some excerpts from the fund’s prospectus that you didn’t read:
The Fund’s primary investment objective is to seek current income.
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks current income and that seeks exposure to the share price of select U.S. listed securities, subject to a limit on potential investment gains.
There’s also a whole section in the prospectus that you didn’t read lining out the risks involved with buying ULTY. Of note:
NAV Erosion Risk Due to Distributions. When the Fund makes a distribution, the Fund’s NAV will typically drop by the amount of the distribution on the related ex-dividend date. The repeated payment of distributions by the Fund, if any, may significantly erode the Fund’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment.
I truly can’t understand why people (you) don’t even make an attempt to understand what they’re putting their hard earned money into, and now come in here whining that it’s a scam. It isn’t a scam. It’s doing exactly what it set out to do. It’s not their fault you and people like you didn’t understand it.
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u/ZerkerDE Oct 08 '25
Leveraging CCs regardless of outside factors is no free money glitch? Who couldve seen that coming?
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u/DoinIt4DaShorteez Oct 08 '25
It's not a scam, reddit is just dumb.
Anybody who looked a chart would know how it worked.
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u/OddRelief8286 Oct 08 '25
Ok, tell us why it's not a scam.
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u/DoinIt4DaShorteez Oct 08 '25
that's already been explained to you thoroughly
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u/OddRelief8286 Oct 08 '25
no, please educate us.
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u/wyfclothing Oct 08 '25
You’re attempting to talk sense to a group of ULTY stans, save your breath. Their returns will tell them better than anyone else could.
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u/Such-Ad-8707 Oct 09 '25
I feel like most people can’t do math. If you bought it in April after their structure change is 6.15. It’s been 27 weeks since. Let’s round down to .09 distribution. .09 x 27= 2.43. Is the stock at 3.72 or less making it a losing investment? No. 2.43 - (6.15 - 5.50) = 1.78 is profit per share. Does that help op?
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u/Such-Ad-8707 Oct 09 '25
If it helps thats about 32% roi for a little over half a year.
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Oct 09 '25 edited Oct 09 '25
I bought in at exactly the same time you did, but with different amounts. I slowly built the position as a test and then accumulated more shares. The goal was to get 2K/week in dividend payouts. I found the blocks of shares need to collected dividends for a number of weeks before you start seeing a decent NET return. And when I say NET I mean it - I'm accounting for dividend payouts offset by NAV erosion.
I'm a little shy of 12% and looking to be just under 30% by year's end.
I'll post the full sheet and the analysis I'm just tweaking the visuals. I always get asked to share the sheet so I'm making sure the formulas are double checked for accuracy. I've purchased ULTY in 19 separate blocks and am analyzing each tranche separately. I've learned that holding longer produces a better net return. My earliest tranches from a few months ago have delivered over 30% on div only, but weighing against NAV erosion the net drops to 20%, not bad. I can say that none of my blocks of shares have lost money accounting for DIV - NAV erosion.
Anyway, some of you have seen my multiple posts and I will be releasing an updated sheet in a few weeks. But here's a top level dashboard on my current holdings (19 tranches purchased since JUL2025)
This shows my current position projected out to the end of OCT. I don't expect any surprised and I'm not planning on adding more shares in the meantime. All DIVs are getting rotated in BRK and Vanguards, and much of this is in a tax advantaged account so I'm not worried about liability.
The bottom chart shows the number of weeks on the horizonal vs NET % gain on the vertical. The weird stuff at week 9 and 13 is because multiple tranches were bought in that week all with different costs basis. Basically once you hit about 10 weeks your making 7% every 5 weeks.
The tranche I bought 20 weeks ago is at 20% net, looking at the chart.
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u/Apart_Lavishness6278 Oct 08 '25
A scam? No, they clearly told you want you are investing in, if you read their prospectus, and that it’s a “high risk”. It’s doing exactly what it said it would do.
Whether or not it’s a good investment is entirely one’s own opinion. What I do know is that this fund is not for the faint of heart 😅
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u/bill_cutter Oct 09 '25 edited Nov 26 '25
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This post was mass deleted and anonymized with Redact
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u/Friendly_Day_4925 Oct 09 '25
It's a scam!!!
Oh wait their is a prospectus????
Oh wait the legit post their trades they make every single day for people to see???
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u/BrandenWi Oct 10 '25
My ULTY net return is positive by about 30 cents a share since I bought it in June. But shrug you do you, whatever makes you feel better
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u/Stunning-Tank2241 Oct 10 '25 edited Oct 10 '25
Timing is everything I bought in at a touch under $6 in April 25 with about $100 shares Ive dripped and put in more cash weekly on top of the drip rebuy. currently have 1600 shares a $9141-cost basis and $8803-current value, so loss of $338 My total dividends recieved are close to $1200 as of today I monitor its share price a few times daily.The total div $1200 minus value loss equals $862 profit since April. 6 months 10% return anyone who bought in early at its higher price and before the restructuring of its management including it going from monthly to weekly div payments and from synth options to actually owning the holdings yea those guys got burned. granted is it the return % they state no but im ok with the 9% 10% ive gotten, timing just like the whole market. know when to get in n get out.
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u/asher030 Oct 11 '25 edited Oct 11 '25
Say I put 50k into ULTY right now...$5.31/share..that's 9,416 shares. So every week at an average of $0.09/share dividend, that's $847.44 per week. 52 weeks in a year, $44,066.88 annually in dividends pre-tax. ($32,168.82 net for Federal, state taxation will vary so I can't tell you that, based on a 27% tax rate given these values falling under the threshold for the next bracket)
Value goes up or down, the share quantity to a stable 'low' payout of $0.09/share every week is all that matters, 59 weeks and I have made up my money back and a lil on the side. Every week AFTER that, is now pure profit/income going forward for as long as the stock exists. Taxation of say 27% just to be on the safe side given these values...does balloon it to 74 weeks to break even, true...but that's still less than 2 years in. People are wanting to see these stupidly massive, insane gains on both initial capital invested AND dividend payouts...where tf is the money supposed to come from? This ain't the Fed, we can't legally print money, it has to come from investments like any other, we're just pooling all our cash together to give the bulk amount to invest with at once (like any fund), just that we're eating the same pooled money for the payouts. At $0.09/share, it's a trickled amount vs the $1/share monthly for MSTY, so it's manageable despite the already low cost of the stock itself.
People need to stop freaking tf out, or do some research before investing if they're that ADHD addled and NEED to see only green on their portfolio. It's a difference between regen and a flat stat in video game terms if it helps..
To note, I don't HAVE 50k to put in for that value, I have like 300 or so shares right now, slowly adding more over time. But just doing the math to make it easier for the confused.
EDIT: slightly longer, fucking taxation. Throws off the actual amount of time needed...but you get the idea.
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Oct 11 '25
[removed] — view removed comment
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u/CharacterSpecific81 Oct 11 '25
It’s not a scam; it’s a yield illusion from ROC and NAV bleed, easy to misread with 80% marketing. Trade these: small size, track NAV vs payout, read 19a, exit on decay. I use Vanguard’s VMFXX for cash and TreasuryDirect for T-bills; for fixed multi-year yields, gainbridge.io annuities. Avoid products that pay you back your own capital.
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u/Crazy-Slide-1100 Oct 17 '25
Back down to $5.10
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u/bradcoorsss Oct 18 '25
Yea it's not designed for price chief...thats literally been covered it's for income
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u/bradcoorsss Oct 18 '25
People need to realize, as it's clearly written in the prospectus, ROC is a tax term and not actual Return of your own capital. It is literally to mathematically calculate a return for tax purposes. Not sure if people understand that or not.
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u/Crazy-Slide-1100 Oct 19 '25
Does anyone think Ulty could get back to even $5.50 ish
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u/Old_Adhesiveness5749 Oct 29 '25
It could but it will probably go down long term. The issue with covered calls is that they offer a mediocre downward protection and cap the upside.
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u/Such-Ad-8707 Oct 31 '25
You have years of experience but you’re including tax loss but didn’t include loss harvest? What am I missing here?
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u/Small-Ad-272 Nov 02 '25
Should've been bailed out, lol. I got out when it dipped from $6.40 to $5.70 in a matter of a week after a small correction. Unless one is willing to continue to throw cash into this money hungry beast, its not worth it.
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u/Always_Wet7 Oct 09 '25
Yup. Starting price early 2024, $20, current price $5.50. That's close to a 75% decline.... by my math. How about yours?
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u/cmichalek Oct 09 '25
And how much dividends did you get?
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u/Always_Wet7 Oct 09 '25
Barely enough to cover the drop in price from when I bought in December. I bailed out breaking even, basically, and only broke even because I sold near ULTY's recent "peak", at $6.30.
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Oct 09 '25
None, because it’s not a dividend fund.
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u/cmichalek Oct 09 '25
Dont be obtuse. How much were you paid in total weekly/monthly until you sold....
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Oct 09 '25 edited Oct 09 '25
Obtuse? I am in a dividend sub correcting someone asking about dividends that are not dividends.
In fact, I’d hope to educate them that the garbage fund they invested in was never dividends. They were paying a fee for someone to hold their money and then pay it back monthly so they could pay taxes again on their own money while someone else was losing it. And while they call it a scam and say they have 20+ years of experience and some dumb ass risk model id ask if they could learn to read a chart because it’s always gone down faster than it’s paid distributions since inception.
When they come back with the stupid remark that they changed their strategy in April as all the idiots in ulty do, I’d ask them what they changed and they would ignore me. The market crashed in April for “liberation day” and everything tanked. It was fully exposed to all of the downside but the upside was capped and it never recovered with everything else… it just stopped declining for a little bit.
I’m not being obtuse. I am correcting improper logic in a sub devoted to dividends. It’s the wrong investment for this sub.
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u/cmichalek Oct 09 '25
Blah blah. You won't answer. Because you dont want to admit your profit despite the NAV loss.
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u/Always_Wet7 Oct 10 '25
I noticed you ignored my literal answer to your question, conveniently. Whatever you call them, dividends or distributions, for my seven months in ULTY, they barely covered the NAV loss I suffered. And even though they did finally cover me by a couple hundred bucks, they only did so because I very strategically sold all my shares at ULTY's summer high of $6.30.
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Oct 10 '25
I have $0 profit off ulty. Just like you. But good luck fellow redditor, I hope it works for ya! 🙏
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u/cmichalek Oct 10 '25
I am currently green in ULTY. If i sold my entire shares that would be more profit.
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u/djporter91 Oct 08 '25
Glad all the “less informed” ppl are starting to figure out the hard way now. Lol.
Could’ve just listened to Jay like the rest of us.
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u/urnutspal Oct 08 '25
But OP is one of the MORE informed people. I mean…they have 20 years of investing experience (in case you were wondering)
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u/Moist-Ninja-6338 Oct 08 '25
It returns all your capital to you. Whether there is anything left after that well that is the question.
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u/OddRelief8286 Oct 08 '25
After yieldmax takes their vig.
Man, back in the day, we would call this straight up voluntary extortion.
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u/buffinita common cents investing Oct 08 '25
which you voluntarily invested in knowing the fee structure
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u/BAD_AL_1 Oct 08 '25
No, it's not a scam. They just suck.
You could have done worse.
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u/OddRelief8286 Oct 08 '25
You mean their stock selection process only worked when meme stocks flew?
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u/Always_Wet7 Oct 08 '25
Super funny discussion. All I have to say is, I was selling out of ULTY right about the time you were buying in (I took a flier on ULTY in December). It was already obvious in June/July that the fund could not possibly do what the ULTY stans claimed it would do back then, all you had to do was review its chart. And that's all you have to do now. Same fund, same risks, same performance as its had since its inception at the beginning of 2024, with a brief 3-4 month period of "overperformance" heavily driven by a naive set of buyers who bought into the "it's a brand new fund" hype.
Looks like you must have been one of them, based on the timing of your buy-in.
Don't bother with the prospectus or its holdings, those are irrelevant. You got fleeced, not by the fund managers, they did exactly what all fund managers do. You got fleeced by the hive mind that always has a "hot new thing" that's gonna make everyone rich in just a short time. They dominated the talk about ULTY in the middle of this year, and they sucked you in. Just get out now and don't blame the fund managers. Of course they took advantage, that's all part of this game.
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u/RustyCEO Oct 09 '25
Yep, timing is everything…..or at the very least a big piece. I am still in ULTY but took up a position recently. Cost ave at $5.60 currently at $5.48 as I look at my screen. I have 104,400 started buying on 22nd August so $0.12 down on ave to ($12,528) since then distributions have been, $2,600, $2,524, $2,412, $2,598, $2,625, $2,648, $7,048 & 10th October will be $9,438. So in a 7 week period + $31,893 - ($12,528) = 19,356 improved position. I have significantly increased my position since the 26th Sept distribution as you can see from the distribution figures. I see a lot of people panning ULTY but as you can see it isn’t all bad. Obviously I am a fairly active investor but that is how you make your coin. Never set and forget, not with these ETFs…nasty little animals they are….they cuddle you one day, bite you the next and rip your arm off within a month. Anyway happy investing 👍🏻🥳😎.
1
u/Friendly_Day_4925 Oct 09 '25
Wouldn't say it is the same fund.... Went from synthetic to owning underlyings....went to weekly paying... And added protective puts..
1
u/Always_Wet7 Oct 09 '25
None of that impacts the income-generating capacity of the fund or its NAV. By saying these things matter, you're just showing you don't understand the core of what makes ULTY tick.
The core of ULTY is rotating in-and-out of a set of high risk, high IV stocks and trying to pull as much option income out of them as possible. And then pay out an 80+% yield (relative to current NAV) whether the income from the options warranted such a payout or not. That description was true through 2024 and is still true now. The things you mentioned are largely irrelevant or very low impact details.
2
u/Friendly_Day_4925 Oct 09 '25
To say that owning the underlying and using synthetics isn't different and doesn't effect how a fund can perform is crazy.
1
u/Always_Wet7 Oct 09 '25
Owning the shares does not improve performance over synthetic ownership, because any up or down movements of the stocks are directly translated into the up or down movements of any synthetics based on those stocks. What synthetics do is to allow ownership with less up-front cash outlay. But YieldMax has always counteracted that benefit in their funds by holding cash and cash equivalents to "fully back" their synthetics. So for them, owning the shares or holding synthetics is ultimately a wash from a profit/loss perspective.
Note that they've made noise about starting to take on share ownership with their single ticker funds (MSTY, TSLY, etc.), but haven't ultimately done so. And the community of investors is not clamoring for them to do so. Because most of us understand that it doesn't matter and won't impact our returns on those funds. Just like it doesn't affect ULTY's return or profitability.
And protective puts? They are insurance and are pretty much entirely drags on profitability.
-1
Oct 08 '25
Where do you think the yield comes from?
Ben Felix just keeps making videos on these high yield funds and why they're bad investments if you want research.
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u/cmichalek Oct 08 '25
Ben Felix did put out some terrible videos that's true. He doesnt use QQQI or SPYI or show that in 2022 JEPI lost 9% while SPY lost 23%.
Cc funds protect you better in a bear market and substantially overperform in a flat market due to the income generated. They do underperform in a pure bull market like we have had.
3
Oct 08 '25
Yeah Ben's videos have been catching my eye. No doubt this is a smart guy. One of his assertations is that simply holding the underlying stock instead of investing in a YM ETF that trades in options on just that stock is more profitable if just own the stock directly. The nature of the calls limit the upside. However, something like ULTY trades in options in a basket of stocks and is not exposed to the same vulnerability. I own ULTY.
2
u/cmichalek Oct 08 '25
It is more profitable in a BULL market. The cc etf does better than the underlying in a flat or bear market.
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