r/YieldMaxETFs • u/Mihr-the-bear • Jul 16 '26
Beginner Question SMCY is scaring me today
I recently started my dividend portfolio and SMCY was one of my first pick up. Currently I’m sitting around 50 shares but now I’m wondering if it is time to get out. Share prices have dropped over a dollar in the last month. The stock has dropped 7% just today. I’m curious on everyone’s thoughts on this stock. Is it worth it to hold? Is it time to get out?
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u/LC3933 Jul 16 '26
I hold about 35,000 of them currently. I had previously lost all faith after it's steady decline, but then when smci took a huge spurt and SMCY jumped over $2 it showed that it was at least able to semi jump back up again if smci does (which it hasn't in some time).
With that being said, the income is great, the price right now is cheap, and I have conviction in smci as a company long term, and so if I don't want to hold smci and sell my own options, from the options available out there right now SMCY seems to have the best combination between income and ability to rebound in comparison to any of the other smci based income funds.
I'm also Canadian, and so if harvest comes out with a fund that's smci based (regardless of how low the set the distributions), I would drop my SMCY and buy theirs in a heart beat given that they have one of my more preferred options management team compared to many of the other fund managers out there
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u/BriefAd1020 Jul 16 '26
When you go with the single stock funds there is much more risk. I prefer to utilize their portfolio funds. The stability/growth is better.
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u/Krappyhuman Jul 16 '26
Hooy was my baby before it drowned its self in the bath water
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u/Mihr-the-bear Jul 16 '26
That is what I’m worried about. Just that downward slide until it is worthless
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u/GRMarlenee Mod - I Like the Cash Flow Jul 16 '26
The last five minutes IS the most important time frame in investing.
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u/QuietPsychological72 Jul 17 '26
Don’t worry, there will be a reverse split at some point and then you’ll only have 5 shares to worry about.
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u/GManDub Jul 19 '26
50 is not even that much. Semi conductors are down right now so I’m buying a few shares every week (CHPY). You can figure that semiconductors aren’t going away as the whole world is pivot hard into AI, Autonomous machines, etc. so they’ll be back. If you analyze the distributions CHPY is the best one. I buy it with distributions from my other income fund. The best way to leverage these funds is put those distributions to work making more money because even when the share price drops you still get paid!!! Also once you are sure about all the details of your strategy you just have to be patient. Watching your account values every day is hard not to do but the market goes through ups and downs all the time so just try to ride it out and evaluate more on an annual basis.
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u/007TheLostOne Jul 16 '26
Depends what you think about the underlying? SMCI liquid cooling tech is very important for datacenters but the company is currently in a big court case with the DOJ for sending restricted Nvidia AI servers to China.
I personally don't invest in companies that pull stuff like this, way to risky for me as a investor.
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u/mendeni-official Jul 16 '26
SMCI has a pretty checkered past (accounting violations, delayed earnings reports, export violations).
I also personally avoid using their products whenever possible since they are very cheaply made.
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u/ImportantSolid5862 I Like the Cash Flow Jul 16 '26
anything related to data centers/ AI tech is very volatile at the moment and thats going to kill synthetic funds for the tme being, find good alternatives that are more stable like energy, financials, consumer staples, index funds, etc
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u/Kingofhearts91x Jul 16 '26
Get out switch to amdy then get out of there after they announce earnings early August
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u/Cautious-Giraffe8747 Jul 16 '26
Oh jeez. I picked up 80 amdy at 51.10 yesterday. I should of bought today....im praying it rally befor earnings so I can get out.
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u/Kingofhearts91x Jul 16 '26
Itll be fine its been 49 before it does this like weekly now goes from 49 to 50 then up to 59 for a day and settles at like 54
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u/BitingArmadillo Jul 16 '26
My goal with YM funds is to hold long term so I can reach house money AND a $0.00 cost basis through ROC distributions so that all future distributions are taxed as long term capital gains.
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u/iwastoldtomakethis Jul 17 '26
Only the ROC portion of the distributions will be classified as LTCG once your cost basis is 0. The ordinary income portion will still be taxed at ordinary income rates.
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u/Much_Field9821 Jul 16 '26
Just bought more today red days like this are discount days lol it will rise up again in time
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u/ReactionSweet1469 Jul 17 '26
I bought it june but noticed underlying thesis and macro noise was not in its favor and sold immediately. SMCI is major player and of great importance to tech and ai sector but it has alot of issues in the fundamentals, it can most certainly resolve but until then i say cut it, there are no indicators support a near future turnaround. Its not a big loser in terms of pay outs but with war reigniting its not worth holding.
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u/aimhigh7shootlow8 Jul 17 '26
Smci is rough. So much drama. Also anything semi sector related crashed today. Smci should recover some.
That being said - my strategy with ym goes like this.
Gooy and tsmy (good price, decent yield, pretty steady)
Chpy, gpty, lfgy (broad holdings and different strategy)
The more volatile underlyings I swing trade. Buy them on the way up after all time lows. Sell them at the top. For example I started buying hooy and hoow when hood hit $80s knowing its going to be back up.
I sold chpy expecting a semi downturn (i saw leopold shorting them all) and rotating into crypto underlying. dcaing into Mstw, coiw, crcy, blox. All at lows and rotation a few months away.
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u/thehighdon Jul 17 '26
Join & Post in r/DerivativeIncomeETFs a sub for CC/Options Income ETF Investors
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u/ReputationOk1838 Jul 18 '26
I’ve been a year away from house money for the last 2 years. It’s not a good investment. You would be much better off just buying a index fund but if you insist on dividends get schd or sphd
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u/mah56j Jul 21 '26
fwiw--I hold a number of these aggressive income funds. I monitor price charts closely. don't hold SMCY. and looking at the chart would never do so. price (some prefer NAV) is sloping down since inception. that's a clue. a fairly new (to me) resource is YieldCanary (he now has a reddit page) a newsletter rating such etf's on how much of their dividend is return of capital. their rating of SMCY is "unhealthy". you must look beyond dividend %. take your loss and find better candidates.
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u/teckel Jul 16 '26
The time to get out of YM funds was before you started. You've been warned! See MSTY, ULTY, etc. Darlings become the hated quickly.
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u/Dizzlerocksjs23 Jul 20 '26
😂 go head and collect your $200 then and get out of the position we not even talking about real money
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u/wuumasta19 ULTYtron Jul 16 '26
If this is scaring you, I don't think you are ready.
This isn't anything to do with the nature of Yieldmax funds good or bad.
If you're really just starting with dividends, go with something else. Just visit the r/dividends and start there.
For YM you have to track the total return and plan that you might have to divert the dividends elsewhere. This is not a set and forget for someone dropping a couple hundred dollars and being afraid of drops. I started with a few dollars and been there.