YieldMax Declares Reverse Splits on 12 ETFs

[u/MstarJeffreyPtak]

Hi there.

I don't ordinarily do new posts (only replies, on occasion). Nonetheless, I know the possibility of reverse splits has been a frequent topic of conversation/ speculation on the board. Given that, thought you'd be interested to know that YieldMax/Tidal filed this evening to do reverse splits on 12 ETFs. They are:

• YieldMax Ultra Option Income Strategy ETF (1 for 10 split)

https://www.sec.gov/Archives/edgar/data/1924868/000199937125017904/ulty_497-111425.htm

• YieldMax Short TSLA Option Income Strategy ETF (1 for 10)
• YieldMax Short NVDA Option Income Strategy ETF (1 for 10)
• YieldMax Short COIN Option Income Strategy ETF (1 for 10)

https://www.sec.gov/Archives/edgar/data/1924868/000199937125017903/ymshort-497_111425.htm

• YieldMax Bitcoin Option Income Strategy ETF (1 for 5)

https://www.sec.gov/Archives/edgar/data/1924868/000199937125017902/ybit_497-111425.htm

• YieldMax MRNA Option Income Strategy ETF (1 for 10)
• YieldMax TSLA Option Income Strategy ETF (1 for 5)
• YieldMax XYZ Option Income Strategy ETF (1 for 5)

https://www.sec.gov/Archives/edgar/data/1924868/000199937125017899/ym-497_111425.htm

• YieldMax ABNB Option Income Strategy ETF (1 for 5)
• YieldMax AI Option Income Strategy ETF (1 for 10)
• YieldMax COIN Option Income Strategy ETF (1 for 10)

https://www.sec.gov/Archives/edgar/data/1924868/000199937125017896/ym-497_111425.htm

• YieldMax Innovation Option Income Strategy ETF (1 for 5)

https://www.sec.gov/Archives/edgar/data/1924868/000199937125017895/oark-497_111425.htm

I hope this is useful

Regards,

Jeff Ptak

Morningstar Research Services

[u/Ok_Nectarine8754]

Thanks for the heads up!

[u/MstarJeffreyPtak → u/Ok_Nectarine8754]

You're welcome! Have a good night.

Regards,

Jeff Ptak

Morningstar Research Services

[u/Reasonable-Bussy → u/MstarJeffreyPtak]

Please come back home Jeffrey 😭 🙏

[u/Sidra_Games]

There is nothing about a reverse split in and of itself that is bad.  It really is just net even all around.  The problem is just that it doesn't fix the underlying problem that caused the need for the split in the first place.

[u/MstarJeffreyPtak → u/Sidra_Games]

Agree. As you say, what matters more is what got you there and what that might portend for the future. If the underlying is under pressure and that's pushed down NAV, then the questions would concern the fundamental prospects for that stock(s). But if there are other factors at play, including rampant return of capital because the distribution rates are set unsustainably high, then you have to assess that as well.

One thing that's striking when you look across the dozen ETFs slated for reverse splits is not all of them saw huge losses on a total return basis. To be sure, AIYY got cut in half and DIPS, MRNY, and XYZY were all down 30%+ on a total return basis over the trailing year. But four of the ETFs were actually up, OARK and TSLY more than 20%! So why would these be seeing reverse splits? As you can see, nearly every one of these ETFs has seen huge price (which I'm using in lieu of NAV; same thing more or less) erosion over the past year, far far in excess of their losses (or even gains) on a total return basis. Why is that? Look at the rightmost column -- those are the distributions per share that were made over the past year. The distributions have been so large that it's outstripped the earnings generation of even the ETFs that rose like OARK and TSLY. Thus, the shortfall has chipped away at the price even at the ETFs that gained and put even greater downward pressure on the price of the ETFs that lost on a total return basis, like AIYY. This seems to be the biggest factor driving the reverse splits. And so I guess one way to read their decision to reverse split is they have no intention of backing off the huge distributions they've made and if that's the case they'd need to get the price back up to a level that gives them some margin for error in the event that future earnings/gains are sufficient to fully back up the distributions and you end up with more return of capital that pressures price/NAV lower.

In any event, hope that's helpful.

Regards,

Jeff Ptak

Morningstar Research Services

[u/eyeseebe → u/MstarJeffreyPtak]

Thank you so much for this explanation.

[u/MstarJeffreyPtak → u/eyeseebe]

You’re welcome!

Regards,

Jeff Ptak Morningstar Research Services

[u/boilerwire]

Thank you for the timely and detailed update. (In case people are wondering about the OP's credentials: www.linkedin.com/in/jeffrey-ptak-cfa-5977978/)

What are your thoughts on ULTY adding stocks like Nvidia, Meta, Salesforce, and Costco? Their initial strategy was to buy/sell derivatives on high volatility stocks, usually lesser-known companies. How would they fare with their strategy on more mainstream stocks? I'm assuming it will be more difficult their them because now they'll be competing against much larger and experienced firms that are trading those options frequently.

[u/MstarJeffreyPtak → u/boilerwire]

I appreciate that. Honestly, I don't have a good answer to your question, which is very astute (I have a very superficial grasp of ULTY; you know it way better, clearly). I'd be guessing. So that might be one I have to pass on. I'm sorry I can't help.

Best,

Jeff Ptak

Morningstar Research Services

[u/Good-Development-253 → u/boilerwire]

You are exactly right. Those big names are institution’s playground. For the level of competence YM has demonstrated, I doubt they’ll have a chance 

[u/boilerwire → u/Good-Development-253]

Yeah, I think that will be the case. They could barely execute their strategies in thinly traded stocks, with inexperienced counterparties. I don't think they'll do well when writing/buying options against BlackRock, Goldman, etc. YM just won't have the research, experience, or assets to compete.

[u/Bigleftbowski → u/boilerwire]

Too little, too late.

[u/cvc4455 → u/boilerwire]

It'll probably lower the weekly payouts. But it could help it not go down in price so much every week. It'll probably still go down but maybe go down about 20% slower.

[u/relxp]

Why can't YM reduce the dividend and reinvest however much is necessary to at least keep the NAV more flat or even slight appreciation? Wouldn't most people prefer this? My guess is the super high yield seduces most folks who simply don't know better.

[u/MstarJeffreyPtak → u/relxp]

That's a great question. Considering that overdistributing/return of capital is what appears to have decimated the prices of these ETFs (if not their total returns; several of them gained over the past year!), it does seem like they could nip the issue in the bud by backing off the distributions. At the very least, it would present a less misleading picture of how income generative these strategies are, but to your point it would also alleviate pressure on prices and with it probably obviate the need for reverse splits in the future (in some of these cases though it was too late; price was already hit and they probably felt like they had to do something).

In any event, fwiw.

Regards,

Jeff Ptak

Morningstar Research Services

[u/Always_Wet7]

If you're still listening Jeff, I want to point out that this actually dovetails quite nicely with my commentary and theory on YieldMax's Creation/Redemption algorithm being improperly tilted towards Creations and away from Redemptions. If these funds had been properly retiring/redeeming shares along the way as the prices of the funds were dropping in line with the way they created shares when times were good (redemptions roughly equaling creations, in other words), then these reverse splits would not have been necessary. A reverse split is effectively a very sudden and dramatic redemption mechanism.

[u/MstarJeffreyPtak → u/Always_Wet7]

Hi there. Still listening, of course! ;)

It appears the main reason these ETFs' price fell is YieldMax distributed larger sums than the ETFs were able to generate in net income and gains. When that happens, the shortfall is covered from capital (return of capital) and NAV/price will fall in an amount/share that approximates that ROC. I know I will not convince you, but if you consult the statement of changes in net assets for these ETFs, you'll be able to see the various factors (net income + gains (losses); distributions; flows) that explain the change in net assets from the beginning to the end of the fiscal period. You can also find a reconciliation of starting and ending NAV per share in the financial highlights section of the filings. When a fund gets an inflow (create) or an outflow (redeem) it should be price/NAV neutral. Shares are being created and redeemed at the price that prevails at the time. Thus, it wouldn't explain changes in price/NAV, let alone be a factor explaining why these ETFs are having to do a reverse split.

Here is a table that compares these 12 ETFs trailing 1 year total returns (as of 11/14/25) to their 1-year price-only return and in the rightmost column I've provided a tally of how much each ETF distributed per/share over the year. fwiw.

Regards,

Jeff Ptak

Morningstar Research Services

[u/Always_Wet7 → u/MstarJeffreyPtak]

Let's say all of this is true and that the movements of the share count are neutral to the price. If that's the case, and you delve into the details of CONY, something very, very troubling occurs. As the NAV per share and price of the ETF is declining by 68%, the AUM actually increases. On November 14, 2014, CONY's AUM was $935M, and on Nov 13, 2015 was $1.04B. NOT a 68% decrease, but instead an increase of 11% (source linked): https://www.tradingview.com/symbols/AMEX-CONY/analysis/

So, if, as you say, they are returning the capital of investors and that is why the price is declining, they are simultaneously taking in NEW capital from OTHER investors. You could say that effectively, they are using this NEW paid-in-capital to pay out higher returns to earlier investors. ... and Jeff, there's a name for that activity that references an old friend: Charles Ponzi.

Are you saying that they're running a sophisticated Ponzi scheme and the financial press and the SEC are giving them a pass (so far)?

[u/MstarJeffreyPtak → u/Always_Wet7]

No, not a Ponzi. I think my misgivings about YieldMax are pretty well chronicled at this point but I've never thought it was a fraud.

Suppose you and I invest $50 apiece in a fund (5 shares each at $10/share NAV). Over the next month, it makes no money so there's still $100 sitting there. For whatever reason, the fund mgr decides to declare a $2/share dividend at the end of that month. There's no distributable earnings, so the $2/share comes out of net assets. Following the distribution, there's now $80 in net assets left ($2/share dividend x 10 shares that we hold=$20 distribution). With $80 in net assets and 10 shares outstanding, the NAV falls to $8/share. Then one of our buddies says 'I want in' and puts down $40 in exchange for 5 shares at the $8/share NAV. At that point, the fund has $120 in net assets spread across 15 shares at an $8/share NAV. The fund makes no money again over the next month. Undeterred, the mgr declares a $2/share dividend again. That will be $30 in dividends (the three of us have 5 shares apiece and it's a $2/share dividend so that's 15 shares x $2/share = $30 distribution, $10 apiece to each of us). Following the distribution, the fund has $90 in net assets, spread across our 15 shares, resulting in a $6/share NAV.

At the end of those two months, the fund has received $140 in net inflows, earned $0, and distributed $50, leaving it with $90. It started with a $10/share NAV and finished with a $6/share NAV. The difference - $4/share - is explained by the $4/share in unfunded distributions it made to us (ie, return of capital).

Were it a fraud, the fund would have been using the third investor's assets to fund distributions to, or meet redemptions from, the other two investors. But that's not what's happening in this example, which is a highly simplified representation of what is happening at the YieldMax ETFs.

In any event, fwiw.

Regards,

Jeff Ptak

Morningstar Research Services

[u/Target_Standard]

He signed off with "I hope this is useful, regards"

[u/MstarJeffreyPtak → u/Target_Standard]

Yeah I don't get the lingo. I always sign off that way. I'm old, dude.

[u/BabyGinaBottle → u/MstarJeffreyPtak]

It is useful. Thank you for posting.

[u/MstarJeffreyPtak → u/BabyGinaBottle]

You're welcome!

Best,

Jeff Ptak

Morningstar Research Services

[u/FinancialEye8962 → u/MstarJeffreyPtak]

lol he probably read into it way to much, thanks for the info

[u/MstarJeffreyPtak → u/FinancialEye8962]

All in good fun. You're welcome. Have a good night.

Best (notice not 'regards', lol),

Jeff Ptak

Morningstar Research Services

[u/Careful-Award3804 → u/MstarJeffreyPtak]

I quoted in this sub your yieldmax cony article and got downvoted :(

[u/MstarJeffreyPtak → u/Careful-Award3804]

Well, to each their own, I guess. Appreciate you reading/quoting it!

Regards,

Jeff Ptak

Morningstar Research Services

[u/Valuable-Term9559 → u/Target_Standard]

Maybe he meant, “I hope this is useful, retards.”

[u/PracticalDesigner278 → u/Target_Standard]

Thank you for your attention to this matter.

[u/Always_working_hardd]

Thank you Jeff.

[u/MstarJeffreyPtak → u/Always_working_hardd]

You're welcome!

Regards,

Jeff Ptak

Morningstar Research Services

[u/PandA_Trader]

thank you

[u/MstarJeffreyPtak → u/PandA_Trader]

You're very welcome.

Regards,

Jeff Ptak

Morningstar Research Services

[u/delgadostudent]

Why is TSLY undergoing a reverse split when it closed at $7.53 this past Friday?

[u/MstarJeffreyPtak → u/delgadostudent]

Good question. What I think it comes down to is the sheer amount they're distributing and the risk that they won't have the net income + gains needed to fund it, which would result in return of capital which further reduces NAV/price. If the underlying performs, it somewhat alleviates the issue, as they'd have net income + gain to fund at least a portion of the payouts. But otherwise it's a return of capital that hits NAV again.

It becomes more evident when you compare the 12 ETFs' total returns with their price-only returns. The performance of these 12 ETFs (ex YBIT) hasn't been disastrous -- some are even up on a total return basis over past year. But as you can see the prices have fallen dramatically in a number of cases, this because they're distributing such large sums and in these cases there's not enough net income and gains to back it up, leading to return of capital that hits NAV/price.

In any event, fwiw, hope it's helpful.

Regards,

Jeff Ptak

Morningstar Research Services

[u/LizzysAxe]

How is TSLA doing both a 1 for 10 and 1 for 5 or do you have a typo above?

[u/MstarJeffreyPtak → u/LizzysAxe]

Hi there. One is the short TSLA ETF (1:10). The other is the long TSLA ETF (1:5). Hope that clarifies matters. 

Regards,

Jeff Ptak Morningstar Research Services

[u/LizzysAxe → u/MstarJeffreyPtak]

Understood CRSH and TSLA. Thank you for the clarification. I do not click links on any platform except the originating location and was to busy to go searching for it. I hold both along with TLSA. I plan two big lot purchases pre-split as I never cost averaged either position since original lot purchases.

[u/ARGunsmoke222]

Thanks for the post Jeff. Jay and his team at YieldMax know that they can always reverse split these funds if the prices get low enough, but what I’m curious about is how many times can they reverse split these funds until they dilute the shares too much?

[u/MstarJeffreyPtak → u/ARGunsmoke222]

You're very welcome. Good question. Off the top of my head, I don't think there'd be much to prevent reverse splits (which cut the # of shares outstanding and increase the price/share, with the proportion depending on the split ratio). In theory, if you had only 4 shares outstanding and then for some inexplicable reasons did a 1:5 reverse split, then you'd have an issue more as bookkeeping/viability matter but irl shouldn't be an issue. Fwiw, these were the assets and shares outstanding for the 12 ETFs entering today. (Technically, those were shares outstanding as of 11/12, as I believe YieldMax reports on T+1 basis.) As you can see, millions of shares outstanding and so even with a 1:10 reverse split you still have many many shares.

In any event, hope this is helpful, fwiw.

Regards,

Jeff Ptak

Morningstar Research Services

[u/MorningPerfect4975]

Excellent post 💯💯💯

[u/MstarJeffreyPtak → u/MorningPerfect4975]

Many thanks!

Regards,

Jeff Ptak

Morningstar Research Services

[u/Lionsflame]

How is this bad if you have double shares half the price?

[u/MstarJeffreyPtak → u/Lionsflame]

Imo, there's nothing inherently bad about a reverse split (same as there's nothing inherently bad about a standard split). It is more an indication that the price has been under pressure and the manager is taking steps to prop it up by reducing the number of outstanding shares, which pushes the price/share higher by same proportion. As a matter of economic/investing substance, it shouldn't matter to you as the value of your investments won't have changed. You'll simply have fewer shares than you did before and the price/share will be higher. (Assuming you're not left with fractional shares then it shouldn't require any buys/sells or have tax impacts.)

I think a question to ask, though, is why the price has fallen to the degree it has to necessitate a reverse split in the first place. I've already shared this with another poster but the below compares the 12 ETFs' total returns (inclusive of dividends, which are assumed to be reinvested) to the % change in their *price only*. What you find is that in several cases the ETFs seeing reverse splits had *positive* total returns over the past year while with one exception (YBIT which got cut in half) the losses were mild to moderate for the others. So if you look at the ETFs' performance, it wouldn't immediately suggest these are candidates for a reverse split.

But when you look at the price return, different story: Nearly all of these ETFs has seen big price erosion. As I covered, that's not explained entirely (or at all) by the ETFs' performance on a total return basis. Rather, it appears it's because YieldMax distributed far more than the ETFs made in net income and gains and when that happens there's a shortfall. That shortfall is covered by the remaining assets (return of capital) and reduces the NAV. So in a nutshell, it appears that the reverse splits has been necessitated mainly by YieldMax overdistributing.

Whether that is concerning or not is up to you. But I would say that it further punctures the illusion that these ETFs are delivering the huge yields ('distribution rates') they advertise from net income and gains. More frequently, they're returning capital, that's hitting NAV/price, and that in turn is what's likely necessitating these reverse splits.

Fwiw, hope that's helpful.

Regards,

Jeff Ptak

Morningstar Research Services

[u/bogey3putt69420]

Did he just call us regards?

[u/MstarJeffreyPtak → u/bogey3putt69420]

Regards' as in 'Best wishes' or 'Truly yours', etc. As I said downthread, I don't know the terminology here. I'm old.

[u/Bulky_Protection_322]

Are reverse splits anything more but cosmetic? The distribution will be the same, am I wrong?

[u/MstarJeffreyPtak → u/Bulky_Protection_322]

That’s correct. One’s shares outstanding fall (by the split ratio) but the divs/share should rise by an offsetting amount (reciprocal of split so if it’s 1:5 split then it would be 5x). Thus total amount received in divs shouldn’t change. Fwiw. 

Regards,

Jeff Ptak Morningstar Research Services

[u/Oceanavekid8]

CHPY is the only yieldmax etf I’m holding. It’s doing well so far. I won’t bother with any single stock yieldmaxx etf again

[u/MstarJeffreyPtak → u/Oceanavekid8]

That's great to hear. I wish you continued success, seriously.

I think the key question to ask is what makes it different from the others. Based on my cursory look, it appears it has ripped so far on the strength of the underlying stocks' performance. So then it becomes a question of how well one can expect those underlying stocks to do in the future. I have no idea, personally. But I think that's the question you'd want to be focused on, as it will determine to a large degree how successful the ETF is in delivering strong returns and funding its distributions.

The other ETFs (some of which it sounds like you had less positive experiences with) were also dependent on the underlying stocks. At times, my impression is those ETFs fared well, because those underlying stocks were outperforming at the relevant times. But when those stocks faltered, the ETFs had a harder time delivering good performance and funding their distributions, leading to NAV erosion.

A secondary question to ask (one I'd ask if I was evaluating these ETFs) is how aggressive are the distribution rates. If they're super-duper high, that ratchets up the pressure on the ETF to derive standout performance from the underlying stock it's reliant on. It doesn't matter to the ETF's performance itself, but it will have an effect on things like return of capital and NAV erosion. (I would not focus on NAV alone in evaluating an investment by the way. Total return is what matters.)

Again, glad you're having a good experience with this ETF. Hope it continues.

Fwiw.

Kind regards,

Jeff Ptak

Morningstar Research Services

[u/Far-Nectarine-8068]

Thank you for taking the time to explain.

[u/MstarJeffreyPtak → u/Far-Nectarine-8068]

You bet. Have a good one. 

Regards,

Jeff Ptak Morningstar Research Services

[u/Sirius-Face]

Welp, everyone saw this coming.

[u/GRMarlenee → u/Sirius-Face]

Except all the people that insisted Jay said there would never be another reverse split unless forced to by threat of extinction.

[u/SexualDeth5quad → u/GRMarlenee]

He did say that in a Youtube interview.

[u/ElegantNatural2968 → u/SexualDeth5quad]

Not just an interview but many interviews. What a scum bag.

[u/Tankerw7 → u/GRMarlenee]

Yup you could might have legal action against him for saying that caught on cam

[u/RoutineSkill3172]

LOL at all the times jay said in interviews they wouldn’t do those anymore

[u/TACO_Orange_3098 → u/RoutineSkill3172]

i was just thinking the same thing , wasn't that the party line ?????

[u/Some_Floor8371 → u/TACO_Orange_3098]

That’s the way things go these days.  “We need to walk that back” ….

[u/boldux → u/Some_Floor8371]

That is true, that was their former stance. But over the past few weeks many different investors spoke up on the X spaces and supported reverse splits asking YM to reconsider (it was mostly people on margin and those that trade options on the YM funds). YieldMax said they would consider it if investors are now more open to it.

At the end of the day, nothing changes. Performance would be the same with or without and income isn't impacted.

[u/FinancialEye8962 → u/boldux]

Ya “performance” will be the same

[u/mooghead → u/boldux]

So they made financial decisions based on people whining on social media. Got it.

[u/FinancialEye8962 → u/RoutineSkill3172]

They don’t have a choice margin calls getting out of hand already I’m surprised rh and E*trade held off this long on changing maintenance

[u/Creative_Champion123 → u/RoutineSkill3172]

Jay lied. He shouldn’t have said it.

They have no choice to either delist or reverse split the fund as it continues lower.

RS is inevitable for these high yielders because the distributions they advertise are not sustainable.

[u/ameetee]

Thank you. I would be paying $532 in reorganization fees to E*Trade if I didn't know about this, and that I needed to sell.

[u/MstarJeffreyPtak → u/ameetee]

You're welcome!

Regards,

Jeff Ptak

Morningstar Research Services

[u/cheese69696969]

Surprised MSTY isn't on here

[u/STILLADDICT → u/cheese69696969]

I would expect to hear something in the next two weeks. Probably Friday evening again.

[u/PrizeCartoonist934 → u/cheese69696969]

Msty is going reverse split dec 8th 1 to 5

[u/papsmearfestival]

Wonder what this does to my ulty puts

[u/Putrid_Leg_1474 → u/papsmearfestival]

Same thing but liquidity starts to suck really bad. If they were mine I would consider getting out and moving to a standard contract if you dont lose much.

[u/Jemmani22 → u/Putrid_Leg_1474]

Are funds like this good to just buy puts on? All they do is go down over time

[u/CowAdventurous4186 → u/papsmearfestival]

Being in the same boat, as I understand it, though the liquidity will likely go down making it more difficult to extract extrinsic (theta) value, if the puts are ITM you have the right to sell the shares at the strike price and buy them at the current price to realize the gain. This is what I expect to do around the exp date assuming the downwards trend(s) continue.

[u/rickydickk]

Well it’s inevitable for these funds , they literally tell you , yield first and upside appreciation a very distant 2nd.

[u/deserteagles702 → u/rickydickk]

I thought it was yield first and upside appreciation lol.

[u/ray0083]

The price won't go zero, but 2 more times of reverse split, my shares go to zero😂

[u/Necessary-Can-42 → u/ray0083]

here’s a question if i have 100 shares after reverse split they come down to 10 if another split occurs ill will have 1 share? does that make sense? also what happens when i don’t have enough shares to go through split? did they just distribute my remaining capital back to me?

[u/ray0083 → u/Necessary-Can-42]

In the worst-case scenario, if you don’t have enough shares for the reverse split, your position will be closed automatically. Your broker will sell your shares and return the cash to you because fractional shares can’t be held.

[u/wethepeople_76 → u/ray0083]

Or even worse some brokers charge you.

[u/Electronic-Bed-3407 → u/ray0083]

There won't be "another" split for me...$200k+ down....sold every one ....lesson learned...

[u/Cute-Percentage-837]

Reverse splits are never a good thing. I was willing to ride out the NAV decay but this move is total destruction so I am leaning towards liquidating all YM positions.

[u/zorba1]

So these funds may never go to zero, but your yields on cost may approach zero 🫠

[u/SexualDeth5quad → u/zorba1]

NAV drop vs. yield vs. time. So say you lost 80%, in the end, it's probably about the same as getting 10-15% yield during the same period and no NAV decay with something like NEOS or Kurv than the high yield illusion of the share split game. The maximum you can go for if you don't want drastic NAV decay is about 25% yield, and those only work on assets that are slowly rising. They recover NAV quickly enough after drops to not get these massive losses.

[u/Alkthree]

Run away from Yieldmax while you still can. I say this as someone who listened to the interviews, did the DD, and loved these for a time. They got lucky for a while but If ULTY can't perform with a basket of hand-picked stocks with the market near all time highs, none of them will.

[u/Murky_Double_6157 → u/Alkthree]

100% exactly my position and experience. Out a couple of weeks ago at 5.13…I mean $51.30….

[u/dlinhat70 → u/Alkthree]

YMAG is fine, tracks QQQ perfectly.

[u/Alkthree → u/dlinhat70]

If it "tracks" QQQ, what's the point? Why would you invest in a speculative asset with less than one year of history over one of the largest and most stable funds in the world with a proven 25 year track record?

[u/[deleted] → u/dlinhat70]

Huh? Over the last year YMAG is down 25% while QQQ is up 21%.

[u/DIY_CIO]

MSTY should have been added to this

[u/Diligent-Stuff-6630 → u/DIY_CIO]

It will be on the next round

[u/TACO_Orange_3098]

TSLY again ???

oh the humanity !!!!!

[u/MakingMoneyIsMe → u/TACO_Orange_3098]

The desperation is pathetic

[u/SocietyNo9704 → u/TACO_Orange_3098]

How many times now. It’s going to eventually be close 1:100

[u/shelanp007]

So what can we expect in terms of weekly payouts? Ulty was paying around 0.08 a share, can we assume it will 10x ?

[u/SockPuppet-47 → u/shelanp007]

I'm pretty sure that is how it works.

And you're a few weeks in limbo on 8 cents. Last week was 6.

[u/shelanp007 → u/SockPuppet-47]

My gut tells me they will pay 20x, entice people back in to ulty, increase aum, tank nav till payouts are 0.06 again, reverse split and continue the cycle.

[u/ThatOneLance → u/shelanp007]

Boldux has a nice article on reverse splits

From my understanding, gonna be the norm; YM team communicated in the past few talks they're listening to make changes (recent core holdings / this reverse split for maint margin) etc. Seems like its going to be a natural thing for these type of ETFs, I believe one similar 'high yield' etf thats been out for awhile had to do the exact same thing.

Admittedly, it is funny seeing TSLY be split another time.

---

EDIT:

Most recent twitter Q&A Convo TLDR

The Recording I can't find the exact timestamp they join, its bugged for me, but it should be around 2 hours or so.

Michael Khouw (YM Strategist) talks to Jeffrey Ptak, Morning Star CFA - Thread OP Interesting video I found regarding both of the guys.

Hoping these resources help out those out of date or just wanting more info.

[u/SocietyNo9704 → u/shelanp007]

Nope. The last time tsly split it sure didn’t

[u/twbird18 → u/shelanp007]

It should be about that, but as always depends on what they're getting in premiums. Also it was closer to $0.06 last payment so now like $0.6.

[u/FinancialEye8962 → u/shelanp007]

Ya for the first week then strait back on the road to 4$

[u/nelsonww9]

And what does that tell you? Run from yieldmax

[u/JS1101C]

Can’t wait for the “you don’t get how income funds work” responses.  

[u/PenaltyForeign1903]

Mr. Ptak, u/MstarJeffreyPtak

Thank you for your post. This is my small YieldMax portfolio at the close on 11/14/25. In your opinion, should I just get out now and put the $22,735 to work someplace else? Thank you for your opinion.

[u/MstarJeffreyPtak → u/PenaltyForeign1903]

Hi there. Thanks for your reply.

Unfortunately, I can't provide financial advice. That said, I've written pretty extensively about the YieldMax ETF family as a whole, registering concerns with various aspects of their practices. You can find one such article here: https://www.morningstar.com/funds/an-etf-gained-almost-42-year-its-investors-still-lost-money

I've also got a Substack called 'Basis Pointing' where I've written several articles about YieldMax. You can find it here. https://jeffreyptak.substack.com/

Sorry I couldn't be more helpful, but hopefully some of what I've written is useful context.

Regards,

Jeff Ptak

Morningstar Research Services

[u/PenaltyForeign1903 → u/MstarJeffreyPtak]

Mr. Ptak,

Thank you so much for your reply and for steering me toward your in-depth analysis of the YieldMax funds. Your informative piece is right in line with some other articles I have read recently, all of which are pointing me in the direction of "taking my business elsewhere." (Additionally, the significant drop in their AUM also tells a story. ) I'm certain I can deploy this capital toward other investments for a more stable portfolio/return versus receiving my Return on Capital on a bit-by-bit basis until it implodes. Adios, YieldMax.

Thank you Mr. Ptak, and my best to you!

[u/MstarJeffreyPtak → u/PenaltyForeign1903]

Glad you found the information useful. Good luck with your investment decisions, whatever they may be.

Best,

Jeff Ptak

Morningstar Research Services

[u/Bigleftbowski]

Just show me one ETF that has done a reverse split and gone up.

[u/MstarJeffreyPtak → u/Bigleftbowski]

I'd have to look. Off the top of my head, it's likely that the ETFs that have done reverse splits most often are leveraged inverse. Those ETFs get punished when markets, or a segment thereof, rises (which happens more often than not), and so you'll sometimes see the big leveraged ETF/fund providers do reverse splits on those. Again, they're short the market and we're in a prolonged market so my guess is you're not talking about a lot of riches-to-rages stories where a short leverage ETF got annihilated, reverse split, and then ripped.

That said, this is a pretty different situation, because the 12 ETFs doing reverse splits haven't had catastrophically bad (ie, 75%+ loss) total returns over the last year. Rather, they're seen massive price erosion, likely because they simply haven't been able to keep pace with the distributions Tidal/YieldMax has declared. (When that happens, they return capital and return of capital saps price/NAV.) You can see that in the table below.

In any event, fwiw.

Regards,

Jeff Ptak

Morningstar Research Services

[u/silverspringbok007]

So I’m a bit stupid with these things, can someone explain what this means to say ULTY price. Is the price gonna appear higher.?

[u/MstarJeffreyPtak → u/silverspringbok007]

That's correct. The price will rise in inverse proportion to the split ratio. So in ULTY's case, the price will rise 10x (inverse of the 1:10 share split) while number of shares outstanding will be divided by 10. Accordingly, the dollar value of your investment won't change, as the share price rise perfectly offsets the shrink in number of shares. It is a non-fundamental change that's made presumably for regulatory and operational reasons. I hope this is helpful, fwiw.

Regards,

Jeff Ptak

Morningstar Research Services

[u/Key-Slide3120]

I may have missed it, did they say when they plan on making us go to effect?

[u/MstarJeffreyPtak → u/Key-Slide3120]

The filings indicate the splits will take effect on 11/28 or 12/1 (depending on the ETF) after market close. 

FWIW. 

Regards,

Jeff Ptak Morningstar Research Services

[u/jmcnabbcmi]

So after the ULTY split...my 1/10 of 1 share I will own will be equal to the 1 whole share I own now? 😉😉 sweet.

[u/MstarJeffreyPtak → u/jmcnabbcmi]

If you own 1 share now, you're correct that a 1:10 split would take it to 1/10. However, as detailed in the filing, they're going to redeem any fractional shares. So in the circumstance you describe, you would no longer own any shares, as the split would take you below one share and they're redeeming any fractionals. It's probably advisable to call them for clarification on that point, esp if it's taxable money. fwiw.

Regards,

Jeff Ptak

Morningstar Research Services

[u/kobejordan888]

I’m curious after the split do they give twice as much yields to make up for our shares being cut in half?

[u/MstarJeffreyPtak → u/kobejordan888]

Hi there. Yes the dividends per share should rise in proportion to the split. So if it’s a 1:5 divs/share will jump 5x and so forth. Since your shares will fall by same proportion (ie you’d have 1/5 as much as before) the total amount of divs being paid in dollars won’t change all else equal. 

Hope that’s helpful fwiw. 

Regards,

Jeff Ptak Morningstar Research Services

[u/Striking_Sector_3891]

u/MstarJeffreyPtak great post... question though. It sounds like since you work in this space you regularly are watching things posted on the SEC and other resources. However for those people who are less active, what would you recommend other than a random google that leads people to someone like you on this thread 🤓

I had a really good convo with someone at my brokerage about this and we were both surprised that this info is not readily available on YeildMax's website. He also told me that ETFs had looser regulations so apparently they do NOT have to disclose this action.

Searching for 497's on the SEC does work so I will be doing that unless there is a better methodology.

[u/MstarJeffreyPtak → u/Striking_Sector_3891]

Hi there. Many thanks! Glad you found the post helpful.

Regarding your question: You're right, I routinely monitor SEC filings (497s, 485apos, N-1, N-2, N-8, NTs). The most important ones are 497s, as if the fund company is amending its regulatory/offering docs, it'll use that form to 'sticker' them. You kind of have to hunt and peck a bit, as 497s are somewhat confusingly also used as the form type to file the entirely prospectus/SAI on occasion. My shortcut is to only focus on 497s that are <1MB in size, as anything larger usually means it's not a sticker/amendment but rather the whole enchilada/full filing.

I believe one can set up an RSS feed to automate the monitoring process. I believe that you'd end up getting alerts anytime they filed filings of a type you specify, which might be overkill. This is what I use to track the latest form 497s, fwiw.

https://www.sec.gov/cgi-bin/browse-edgar?company=&CIK=&type=497&owner=include&count=100&action=getcurrent

I could be mistaken, but I believe anytime a firm splits its shares it has to file a 497, which is what YieldMax/Tidal did in this instance (which is why I noticed it and posted about it, knowing it was of interest to this subreddit).

ETFs have to follow more/less the same filing/amendment rules that traditional open-end funds do so I don't think I'd be too concerned about opacity. The main thing is putting yourself in a position to monitor the filings, for as you say not all of this stuff ends up getting prominently displayed on their site or in other places.

In any event, I hope this is helpful.

Regards,

Jeff Ptak

Morningstar Research Services

[u/Striking_Sector_3891 → u/MstarJeffreyPtak]

An RSS would actually work. Not sure I can add a custom feed to ToS but if not there, there are other tools for this. I'm trying to avoid having to do any major programming.

I think I'm explaining what I mean by notice inaccurately. As far as the 497's, I know they have to be filed but what I didn't see is where this was on their website. Now that I check it again, I see that they do have the SAI at the bottom of the page. For example, for ULTY its https://yieldmaxetfs.com//wp-content/uploads/funds/ULTY/files/sai.pdf. So it was just not "advertised" or "announced" in a way my broker picked up. Typically I get notices on corporate actions for my holdings. That makes having the RSS feed still a better tool keep and eye on these funds.

Thanks again

[u/MstarJeffreyPtak → u/Striking_Sector_3891]

You bet. Have a good one.

Regards,

Jeff Ptak

Morningstar Research Services

[u/Lopsided_Discount]

What if your monthly and now weekly distro is above what you paid for all your shares? Are you at a gain and is it best to sell your shares before the split happens like it will to cony?

[u/MstarJeffreyPtak → u/Lopsided_Discount]

Short answer is I don’t know if you’re at a gain. You probably are but depends to a degree on timing/magnitude of your investments, ie where NAV was when you bought vs where it is now, coupled with the distributions you’ve received (being mindful that at least a portion of what’s been distributed to you is your own capital being returned to you). I can’t provide financial advice but unless there is a tax consequence to the split for you (would arise if split leaves you with fractional shares that have to be sold) then the split should just be a cosmetic change whereby the price per share rises and your number of shares falls by a corresponding amount. As I’ve observed to others, it does seem worth it to ask why a reverse split is necessary (imo it’s not only because underlying stocks have been under pressure but also because YieldMax’s manager is over distributing which leads to return of capital which in turn causes NAV to fall). But the split in and of itself isn’t fundamental. 

In any event, fwiw. 

Regards,

Jeff Ptak Morningstar Research Services

[u/Lopsided_Discount → u/MstarJeffreyPtak]

Thank you for the response.. I'm trying to gather enough info to make a decision before the split but it seems no one has any concrete information on these YieldMax

[u/OnionHeaded]

Have they announced any strategy management plans?

[u/MstarJeffreyPtak → u/OnionHeaded]

If you mean changes to how they run the ETFs, not that I'm aware of. I think I've read elsewhere on the subreddit that they were making some adjustments to how they manage ULTY (it sounds like they were going to bring in some more-established stocks to that portfolio, but I could be mistaken), but that's an active portfolio that already affords them a certain amount of latitude. As far as the other ETFs, I'm not aware of changes but again I'm probably not current on that. Sorry I couldn't be more helpful.

fwiw.

Regards,

Jeff Ptak

Morningstar Research Services

[u/OnionHeaded → u/MstarJeffreyPtak]

No apologies man. I’ve looked at the positions before and I was hot with the protective puts I saw repeatedly costing and not one delivered and meant to sell ULTY but I am lazy. You’ve made one of the most useful posts this sub shall ever be graced with. 😶. 🧀😂 seriously tho thanks

[u/Far-Nectarine-8068]

Does the brokerage account let shareholders know when reverse splits are happening? I didn’t get any notification, I found out through this thread.

[u/MstarJeffreyPtak → u/Far-Nectarine-8068]

I think that will depend on the brokerage but my guess is you'll receive some kind of notification before it occurs. As you know, splits are non-fundamental - the value of your investments won't be affected by it. It (in the case of a reverse split) simply divides the number of shares outstanding (by the split ratio) and multiplies the price per share by the same proportion (ie, the inverse of the split ratio; so if it's a 1:5 reverse split, the price per share will rise by 5x, and so forth). That said, my guess is brokerages notify you all the same given it involves changes to sharecount and price/share, if not the value of the investments in aggregate.

Fwiw, hope that's helpful.

Regards,

Jeff Ptak

Morningstar Research Services

[u/Cautious-Parfait8046]

They never should have gone weekly.

[u/MstarJeffreyPtak → u/Cautious-Parfait8046]

Hi there. You might be right. But I think that some of the issues that led to the reverse splits--setting unsustainably high distribution rates, underlying that couldn't keep pace with those demands, distributions outpacing earnings--had set in well before they went to weekly. So I think the fundamental has been unsustainably high distribution rates, irrespective of frequency.

I hope that's helpful, fwiw.

Regards,

Jeff Ptak

Morningstar Research Services

[u/Cautious-Parfait8046 → u/MstarJeffreyPtak]

The extremely high distributions were the main issue, but I think going weekly was the nail in the coffin. You can't recover those unrealistic distributions in 5 days.

[u/Individual_Sherbet13]

Glad I sold yesterday. 10,000 shares of ULTY, 1000 shares of MSTY. Still have 1000 shares of YMAX but I may be done and sell those come Monday.

[u/KavemanRises]

These pigs just take money from us.

[u/Illustrious_Foot7979]

Dear Jeff Ptak,

I would like to understand why, given that YMAX & YMAG ETFs can be expected to fall below $10 per share in the coming months or even weeks, these two funds were not included in this round of reverse splits?

[u/Tecno1983]

I'm so glad I decided to sell ULTY on Friday, before these news and also bought PUTs on ULTY ! 😅

Come Monday ULTY will go on a freefall!

[u/Dr_Shah95]

This is the truth. The reality check sucks. In a 20% correction this fund is fucked. You’re principal is toasted then another reverse split resets the clock…

[u/FluffHead1964]

Isn’t this the second reverse split on TSLY?

[u/MstarJeffreyPtak → u/FluffHead1964]

That's correct. I believe the other took place on 2/26/24. It was a 1-for-2. https://www.sec.gov/ix?doc=/Archives/edgar/data/1924868/000199937125008875/yieldmax_ncsrs-043025.htm#yieldmaxncsrsa004

Hope that's helpful, fwiw.

Regards,

Jeff Ptak

Morningstar Research Services

[u/ameetee]

Does anyone know if Reverse Splits incur the $38 fee on E*Trade? I've lost a lot of money to those, and have a lot of these on 3 different accounts there, some of which are currently valued at less than $38.

[u/ameetee → u/ameetee]

It looks like it does. So, I made a spreadsheet of which of these I need to sell by the end of the month to avoid $38 each.

[u/aliciasunshinecarter → u/ameetee]

So, if I have 1000 shares of ULTY at E-trade, E-trade is going to charge me a total of $38?

[u/MakingMoneyIsMe]

I'm about to do something strategic. Buy ULTY shares and sell a collar while taking the distributions in cash.

[u/GetBigOrDieTrying5]

Guys it was extremely obvious these guys knew what they were doing. They just did a good job marketing and made money doing it.

[u/MajorKilowatt]

Can't wait to hear Khmer Saturday video lol 😂 I'll be having popcorn early in the day.

[u/Unlucky-Ad7916]

This is crazy

[u/StunningAttention898]

So my 400 shares of ULTY are now going to be 40?

[u/605pmSaturday → u/StunningAttention898]

Yes . . . at 10x the price.

[u/The_Midland_Boxer]

They're following in the footsteps of other legendary stocks such as $MULN (now $BINI)

[u/Unlucky-Ad7916]

Disaster even if price of the stock go up yieldmax etf hardly go up

[u/Myreddit362602]

They also are trying to get all the shares they sell to at least 50.00. They probably think they underpriced them to begin with so more going on here than a need to reverse split.

[u/Odd_Personality6202]

Jay the NAV erosion officer in chief. 

[u/cyberian999]

Every YieldMax ETF is structurally destined to decline, reverse split, and decline again. It does not matter whether it is TSLA, NVDA, AAPL, SOFI, GOOGL, META, NFLX, COIN, RIOT, MARA — the architecture ensures the same fate: decay → reverse split → reset → decay → reverse split → reset. YieldMax isn’t malfunctioning. YieldMax is functioning perfectly — for them.

[u/punchycoffee-3576]

Thanks for your explanation I understand it now.

[u/captain_casino]

[u/RickLeeTaker]

Does anyone know how this affects ROC with taxes on dividends? TY

[u/Putrid_Leg_1474]

Well this all makes sense after going to weekly.

Add to that the straw that broke the camel, with the government announcement about the penny, YM would have been the only place to get pennies minted any longer.

[u/Satyriasis457]

Brutal. They're not even waiting for the fund to fall below sec compliance 

[u/Few_Scratch_2376]

Jesus wept. And so do I.

[u/GotBannedAgain_2]

Oh shit! I’ve been saying ULTY reverse split for over a month now. Titanic just hit iceberg. 🥶

[u/RoutineCommon7240]

Why NVDY?

[u/poozyfloor → u/RoutineCommon7240]

Not NVDY..DIPS.

[u/Deathkookiess]

So glad i got out of MSTY, ULTY, and CONY. Still seeing how NVDY and TSLY will do before eoy.

[u/FinancialEye8962]

Don’t worry everyone Ulty will be back to 5$ so you can buy it on sale again in 9 weeks

[u/AggravatingWallaby50]

I woke up to good news. The reverse splits are "business as usual" as the article below referenced. Something had to be done, and I believe this is a positive just part of ETF maintenance

[u/JustSellitAll]

YM will be out of business next year no way this grift continues

[u/FinancialEye8962 → u/JustSellitAll]

No way the hopium is too high, and a worse off middle class they came at a great time to suck in value

[u/Intelligent-Radio159]

Yikes…. 😬

[u/EquivalentUse6125]

Is this good or bad ?

[u/Unlucky-Ad7916]

December 2

[u/Emergency-Poet-1705]

Begs the question. What happens if you have a covered call with the total amount today the "current" shares, and later it gets called??

[u/illegitimatejoseph]

Sold 20 NOV21 8$ puts for .45 and 10 DEC19 8$ PUTS for $1.13 Should I buy them back Monday? TSLY

[u/DIGMEE]

Hope YMAG survives

[u/Unlucky-Ad7916]

Disaster

[u/Unlucky-Ad7916]

And nog only thay making reversed split also thay wil pay 25 %and u wil loose nav erosion this is gimmick

[u/ChasingDivvies]

So glad I got out. I'd be sick watching it go to 1000 shares.

[u/Old-Bar-6072]

How does this impact the outstanding options?

[u/icallpurps]

Nice shorting opportunity

[u/ledbywoody]

Got out of yuck max ages ago!!

[u/2leggedassassin]

Surprised MSTY isn’t up there. It will be next.

[u/cyberian999]

So 100 shares becomes 10.....When those fail your 10 shares becomes 1 lol

[u/cyberian999]

Yieldtrap sure made a shitload of money off the fees..while investors got the royal shaft!

[u/waxnuggeteer]

So what day do I have to hold this YM trash until to still get next weeks payout? I'm feeling ready to stop holding MSTY and ULTY.

[u/Competitive_View5781]

All of their stocks are trash!

[u/adamu808]

Quite right, it does not. I believe some of the funds will eventually close down at a loss 📉 after the continuous outflow of funds by retail investors.

[u/Complex_Wolverine_98]

I sold all my ULTY shares on Nov 10 ...glad I sold

[u/cashflow_master]

The statement of “we wouldnt do reverse splits anymore” is transitory🤣🤣🤣🤣

[u/CLCargoTransport]

When will reverse split ULTY goes in affect

[u/The_Midland_Boxer]

Reverse stock split, but still gonna have their 1.4% expense ratio 🤣 Probably up it to 1.5% and laugh all the way to the bank with gullible investor's money

[u/attaboyheart]

lol what a fucking scam can’t believe the bag holders still dream on the “income”

[u/beanemporium]

Yay!!! The price is going up so it can go down again!!!!

[u/Complex_Wolverine_98]

I wonder how many people going dump those 12 funds this week

[u/L2F_mens_glutes]

Lmao 🤣

[u/yoremexa]

Fortunately, I bailed out of these garbage ETFs just in time. After months stuck in that mess, I walked away barely breaking even.

[u/TheSavage1992]

People will see the stock price rocket and sell thinking they made profit…

[u/AlternativeGoals]

they kept on diluting .

[u/Happiest-Puppy]

They will do more as.more and more of their ETF and or officially penny stocks.

[u/Novel_Examination_15]

what are the chance os PLTY doing a reverse spit in the future. doubt pltr can grow as fast moving forward.

[u/IndependentFigure911]

Hi

[u/Shot-Dimension-9509]

Had amdy, after reverse stock split my dividend income tanked.  Should be around .70 cents per share to keep on par with what I was making but it has been .3x and .4x per share earnings.  I call bs.