This fund is less than a year old. There is not enough history to support trying to retiring off of it. See where it is in 5 years before you drop tons in it.
As YMAX gets more mature (gets bigger) those who buy in at the last minute will affect the yield less. In June, shares went from 9,500,000 to 12,500,000 the last three days before ex date. This “dilutes” the dividend. In this case it went from $0.85 down to $.73. As the fund grows in size this drop due to “dividend tourists” will began to have much less of an impact … maybe only a few cents. When it all settles out YMAX should become a 50% dividend fund in a normal market.
One of interesting concepts. Of course monthly dividends produced based on fund performance and market condition. As fund size grows, the team should increase they risk amount to be able to stay in same risk parameters . If given same the same amount of performance outcome very month without any adjustments then your theory will be true.
If my marginal tax rate is 25% and if the actual monthly payout is only half, 20/12= 1.66%, my annual factor with reinvestment...1.0166 raised to the 12th power is 1.218 so for 1000 invested my gain is 218. My tax is 54.50. That leaves me with 163.5 per 1000. My taxed factor is 1.1635 per year. For 5 years compounded, that is 2.132 times my investment or... I could expect to double my investment in 5 years. 0.73/20.4= 0.036 0.036/2=0.018 1.018 factor check for June.
@volta2aire Thank you for sharing such detailed insights! Your explanation is helpful for those looking to understand investment returns and taxes better.
@@shaneomack5018 Yeah. It will be good as long as NVDA is good. YMAX gives you diversity amongst all single tickers. So in theory there should be more NAV stability. FEPI tracks 15 stocks also.
@thinkpassiv Based on the data that is available and when I'll be making this move in the not too distant future, I believe it will be a suitable investment for income medium to long term.
@Blairportfolio I hope it works out for you. The NAV appears to not be recovering as well as YMAG. I think they need to make a YMAX2.0 that only has the high flyers in it, with very few to none of the poor performers. At this point, I'd go with YMAG.
Wrong calculation. YMAX pays monthly, the calculation should reinvest the dividend monthly too. Let's say based on the least dividend amount, to be safe. (Anything extra goes into the cocktail fund anyway.)
Yes, it pays more monthly and the compounding would occur monthly but doing an annual compounding vs. monthly the math is not too huge of a difference. We can do math as complex as it can be but in this video I just made it simpler. Also, I use the overage paid distribution $0.62!
It's not built to grow. In theory it might, some of the other Yieldmax funds have. But so long as it recovers its nav while paying the promised dividend it's doing its job. You build your dividend payouts with more investments.
Your calculations are assuming that the returns on YMAX ETF will be able to maintain 38% yield and hope that the total returns are around 38% or higher. Every year. With the S&P averaging 12% counting up and down years, it's hard to believe you could more than triple that in total returns without the ETF price falling significantly in a bear market while trying to pay out such a high dividend. Yes your dividends could be used to dollar cost average down the price per share, but assuming 38% CAGR is wilding optimistic. I'm just trying to be realistic here. 🙄
@Chris-ew9mh Yes, that’s correct! The calculation is based on the data we have right now. I didn’t factor in any reductions in distribution or increases nor did I count for #ymax price drop or hike. I did mention that in the video. Price drop or appreciation, and distributions reduction or increases all are unknown factors at the moment thus we can’t calculate that accurately.
quick question for you, if Yield Max make profit over calls, all through the month, why does the Nav drops same amount as total profit, like not leaving some to us. For instance, Nav on exdate can drop 0.60 while they are playing 0.90 otherwise the distribution is basically your money if SAME amount drops on Ex date. I am looking for a rational answer to this.
It drops by the div amount because otherwise you could buy in the day before the ex date, then sell at div, and repeat. Meaning you could have nothing invested prior to dividend, get your dividend and sell with the dividend and only a .30 NAV loss in your example. Why would they do that?
Thank you for answering that question. And that’s correct. Any stock or ETF has the EX Date in which the security is traded without the dividend amount include. @SssS-jg8gw
It's always good to be cautious, but sometimes surprises can be pleasantly real! And by the way, we don't know the future so everything is based on the current info we have.
It's real and it's legit by all accounts. Yieldmax has been operating for a year. But, it's untested in a severe crash. It's honest but it may be fragile
![Felix "Unfair" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/Oswujxm2Ag0/mqdefault.jpg)
Your videos are fun, like the scenarios.
Thank you very much for watching and your support.
This fund is less than a year old. There is not enough history to support trying to retiring off of it. See where it is in 5 years before you drop tons in it.
Thank you for sharing your insight! It's important to be cautious with new funds and give them time to establish a track record.
As YMAX gets more mature (gets bigger) those who buy in at the last minute will affect the yield less. In June, shares went from 9,500,000 to 12,500,000 the last three days before ex date. This “dilutes” the dividend. In this case it went from $0.85 down to $.73. As the fund grows in size this drop due to “dividend tourists” will began to have much less of an impact … maybe only a few cents. When it all settles out YMAX should become a 50% dividend fund in a normal market.
That’s a great way to put it that way. If #ymax becomes a 50% distribution yield fund, the calculation will get even better.
@@thinkpassiv definitely 😎
I hope your right! That would be wonderful
One of interesting concepts.
Of course monthly dividends produced based on fund performance and market condition. As fund size grows, the team should increase they risk amount to be able to stay in same risk parameters . If given same the same amount of performance outcome very month without any adjustments then your theory will be true.
If my marginal tax rate is 25% and if the actual monthly payout is only half, 20/12= 1.66%, my annual factor with reinvestment...1.0166 raised to the 12th power is 1.218 so for 1000 invested my gain is 218. My tax is 54.50. That leaves me with 163.5 per 1000. My taxed factor is 1.1635 per year. For 5 years compounded, that is 2.132 times my investment or...
I could expect to double my investment in 5 years.
0.73/20.4= 0.036
0.036/2=0.018
1.018 factor check for June.
50k * 218 = 10900 1st yr dividend before taxing.
@volta2aire Thank you for sharing such detailed insights! Your explanation is helpful for those looking to understand investment returns and taxes better.
YMAX and FEPI. So far, about the only two higher yielders worth touching.
Bought 100 shares Nvdy when it was 24 bucks.. seems pretty good so far 🤷♂️
Yes, these two ETFs are solid!
@@shaneomack5018NVDY is one of my fav too. The performance has been great and hope it continues that way.
@@shaneomack5018 Yeah. It will be good as long as NVDA is good. YMAX gives you diversity amongst all single tickers. So in theory there should be more NAV stability. FEPI tracks 15 stocks also.
I like AMZY!
YMAX is not tested longer term. I do hold some but a small percent
Yes, it hasn’t been around for too long but it looks promising. Glad you started your small position in #ymax!
YMAX pays for my monthly bills
That's awesome to hear! It's great that YMAX is making a positive impact on your finances. Do you invest in other ETFs too?
If I had $100,000 to put into any Yieldmax fund, it would certainly be YMAX.
Looks like you've got your investment strategy all figured out! YMAX for the win!
@thinkpassiv Based on the data that is available and when I'll be making this move in the not too distant future, I believe it will be a suitable investment for income medium to long term.
I just bought 100k of ymax
@Blairportfolio I hope it works out for you. The NAV appears to not be recovering as well as YMAG. I think they need to make a YMAX2.0 that only has the high flyers in it, with very few to none of the poor performers. At this point, I'd go with YMAG.
Wrong calculation. YMAX pays monthly, the calculation should reinvest the dividend monthly too. Let's say based on the least dividend amount, to be safe.
(Anything extra goes into the cocktail fund anyway.)
Yes, it pays more monthly and the compounding would occur monthly but doing an annual compounding vs. monthly the math is not too huge of a difference. We can do math as complex as it can be but in this video I just made it simpler. Also, I use the overage paid distribution $0.62!
How about the growth of YMAX ? What Is YMAX percent growth year over year ?
It's very good question! I didn't put #ymax growth rate because the fund doesn't have a long history of any price appreciation as of now!
It's not built to grow. In theory it might, some of the other Yieldmax funds have. But so long as it recovers its nav while paying the promised dividend it's doing its job.
You build your dividend payouts with more investments.
@@priestesslucy Yes, you’re 💯 right! Thanks! 🙏
Your calculations are assuming that the returns on YMAX ETF will be able to maintain 38% yield and hope that the total returns are around 38% or higher. Every year. With the S&P averaging 12% counting up and down years, it's hard to believe you could more than triple that in total returns without the ETF price falling significantly in a bear market while trying to pay out such a high dividend. Yes your dividends could be used to dollar cost average down the price per share, but assuming 38% CAGR is wilding optimistic. I'm just trying to be realistic here. 🙄
@Chris-ew9mh Yes, that’s correct! The calculation is based on the data we have right now. I didn’t factor in any reductions in distribution or increases nor did I count for #ymax price drop or hike. I did mention that in the video. Price drop or appreciation, and distributions reduction or increases all are unknown factors at the moment thus we can’t calculate that accurately.
Excellent video, thank you so much!
Thanks a bunch for watching! Your support means everything!
What website are you using?
I use different websites plus spreadsheets.
quick question for you, if Yield Max make profit over calls, all through the month, why does the Nav drops same amount as total profit, like not leaving some to us. For instance, Nav on exdate can drop 0.60 while they are playing 0.90 otherwise the distribution is basically your money if SAME amount drops on Ex date. I am looking for a rational answer to this.
It drops by the div amount because otherwise you could buy in the day before the ex date, then sell at div, and repeat. Meaning you could have nothing invested prior to dividend, get your dividend and sell with the dividend and only a .30 NAV loss in your example. Why would they do that?
Thank you for answering that question. And that’s correct. Any stock or ETF has the EX Date in which the security is traded without the dividend amount include. @SssS-jg8gw
@@constitutionalright827thank you
@@thinkpassivthank you
great video, could you share that spreadsheet?
Thank you for watching! I'm glad you enjoyed the video. And sure I can!
Would like it also. How do I get it?
zooming in and out is dizzying 🤢
Is It? sorry to hear that! I may have to minimize zooming in and out!
Way too new to invest 50k right now.
Well, you can always start small!
Go big or go home, my guy! Scared money don't make no money.
Honestly tempted to drop 50k as well, use the divs to buy other more time tested investments.
Noo way this is real or will last , i just cant believe this is legimate
It's always good to be cautious, but sometimes surprises can be pleasantly real! And by the way, we don't know the future so everything is based on the current info we have.
It's real and it's legit by all accounts. Yieldmax has been operating for a year.
But, it's untested in a severe crash. It's honest but it may be fragile
Test passed. Largest crash since covid.