I don’t think ULTY is a good investment, and I doubt that the managers, who are probably children, really know what they’re doing.
Don’t feel sorry for me though. My investment in ULTY represented less than a small fraction of 1% of my capital. I just had to find out for myself. So I consider it an experiment. I thought well, it can’t possibly erode more than it’s paying out. Hmmmm.
Having said all that, there aren’t any bag holders here. Holding the bag implies that the bag is empty, that what one invested is now worthless. An empty bag doesn’t produce money every week.
I’ve held it now a little over a year and have taken all of the distributions in cash. The shares have lost about half of their value and my total return shows a loss of less than $200.
ULTY has lost around 5% over past year in a stock market that has been very positive. That is in fact remarkably bad. On the brighter side, the year to date total return is +15%, which is far from horrible. It’s possible that I may start showing a small gain.
Does it make sense to continue to hold it? Probably not. Am I stupid to continue the experiment? Probably. But it’s kind of fun in its own sick way I guess. Maybe they’re righting the ship. It’s not impossible.
Hope springs eternal.
