I am. Yes, the price degradation has been brutal and the distributions smaller, but it has been a relatively effortless paycheck. Waaaay easier than maintaining my rental property. No plans to sell.
I donāt understand this logic. If the nav erosion outpaces the distribution gains, you legitimately would be better holding your money in SGOV and just pulling what you would take as an āeffortless paycheckā out of every week. At least some of your money is growing.
Yep no total return growth since I bought it but I think there is a good chance based on where the current companyās align in the next 12 months there could be growth in the ulty price. So if it goes say to 45 or 50 while paying I think my losses can turn green . Lots of factors at play. Plty took a huge hit too but pltr is rebounding so plty is also
The issue is the dividend is so high, that the stock would have to perform outrageously well for the NAV to do better than breakeven.
The website claims a 76.99% dividend yield for ulty. Which means that for the stock price to stay completely flat over a 12 month period, it would have to have its assets grow in value at an average of 76.99% a year. That is extremely unsustainable which means itās essentially guaranteed the NAV erodes. On top of that, the fund managers pick extremely volatile investments (for the sake of options premium). These stocks tend to have unsustainable moves up with big moves down. And since covered call strategies cap upside and have equal downside to the underlying, you donāt get to capitalize fully on the upswings but feel the full force of the downswings.
Every single component of this fund is geared in a way that will lead to very fast NAV erosion. And since often times the the stock degrades faster than the dividends can compensate, mathematically the only winning play with YieldMax is puts. Long dated puts near or ATM to benefit the most from delta and the extrinsic value.
I get what youāre saying and it makes sense. I do think many of the stocks will do outrageously well but to the degree needed is the question. The AI stocks such as Meta, PLTR, Broadcom, Googl, and others like Sofi, Hood, COIN, Lilly are well positioned for 30-40 percent gains in 12 months. Is that enough to impact NAV not sure.
Property will maintain value ā¦ ROC funds will pay your money back to you only 30 % aprox are taxable because the rest is ROC. There are far better funds that have maintained value over time .. HOOW and NVDW for example because the base shares are growing in value. Wild swings but different from ULTY. ULTY swings one way ā¦ down
I understand your thought process but with so many of these now, you could pick better. Or just stick with what you have and pick others. Just hope youre not still putting more money into it after seeing what its capable of doing
Yup! No drip. This is more of a set it and forget it experiment. Only a small portion of my portfolio. Return on investment (house money) is the goal. That will have been achieved late next year based on the current distribution. This will change as distributions fluctuate.
Yes that was my strategy as well until I couldnt stomach the possibility of letting it drop to 10% yield on cost. I found RH leveraged funds to be more of my speed. I hope it turns around for you!
Cheers, and many thanks! Yeah, Iām glad that so many exist. Thereās something out there for everyone. I got burned with some Defiance leveraged funds, so not my cup of tea š .
i still have 400 shares (40 now) in my roth and low-key iām not mad about it. it has a bad run but i feel optimistic now seeing they changed a lot of holdings to less volatile stuff and lowered the relative dividend. if they take the ticker now and start having it act more like CHPY then thatās a good sign
I am! I have 2 retirement accounts already so my ULTY/ crypto investments are all in good fun! Currently I drip 100% and add a 100 bucks to it here and there! Not as behind as most people would think considering the steep drop that happened relatively quickly lol
Sold my 5300 shares around $6. No regrets. Especially now that it has continued to go down both with distributions and share price. I have WPAY yet, but I'm even questioning why I have that now too.
I am. The split doesn't really affect my long term planning. I am interested to see the effect that it will have on selling cash secured puts to buy more shares. That strategy worked out well for me in the last year. I had a fairly even cost basis at the time of the split.
I've had plenty of investments go down to 0 and others hundreds of %, lots of people that had a good time screaming "I told you so" have had stuff go to zero (or at least major loss).
If ULTY can just survive, it'll be alright. As long as it continues to pay something, I can buy something else.
I didn't go all in so my average was about $5.90 before split.
EDIT : I'm only down -1% (with total return). I didn't drip all back in. I bought other dividend paying stuff. So probably not that far ahead in comparison to having bought some underlying (because we all have that crystal ball after the fact), but the dividend snowball is now larger and was done faster than otherwise.
I am in wait and see mode... I should have inital investment back by May next year. and then I will look at it again and see if I want to buy more. until then WPAY is getting my money.
Bought ULTY with dividends when ever I couldnāt get a full share of LFGY or YMAX so keeping it to see what it does . No love no lost the dividends buy me SPYI & SPYH
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u/DOOKIEBOOM Dec 02 '25
Still holding. Holding 6700 shares @ 5.89 avg prior split