As long as you or I know what we got into and happy with it, there is no issue. Problems with these funds tend to appear with time, like several years. YieldMax funds are relatively young. You also have to look at alternatives to see your opportunity cost of investing in something else. Most people close to retirement go with these funds because they require smaller capital upfront. But, almost for sure these funds will start short changing them in 5-10 years if they don't reinvest at least some of their dividends. Even with that, other dividend funds provide better returns (and much faster growing dividends that will likely smoke YieldMax in 5+ years), though they may require higher capital upfront to live off dividends alone. It is a big dilemma with people going into retirement with very little saved. I understand why these funds are so popular. But, if someone has enough saved to go with other funds like SCHD or even REITs, they could be a better alternative long term.
You are al lmissing the point. Yialdmax Roundhil, defiance have ALWAYS advertised themselves as INCOME investments. This means they are more concerned about yield than NAV stability, This gives the flexibility of re-investing for long term, pulling for regular income, or even buying other assets, like maybe VOO or SCHD or any combination like that.
That's what I also said at the end of the video. They have their own costs and benefits. The problem arises when people jump into them, not understanding their risks well.
And YOU'RE missing the point that these ETF's are a smoke and mirrors game. They get your attention by paying you a dividend, to distract you from the fact that every month the value of your account is going down, even when the dividend is taken into consideration. All of these ETF's are going to zero, eventually, because they are unsustainable, and may God help you if you're buying these things on margin, because one day they will stop trading, and your account to go to zero, but your margin balance will still have to be paid. It doesn't magically disappear when your assets are made worthless. Relying on these for long term income is not smart, because they won't be around long enough for that.
These funds did very well so far, no doubt. Massive outperformance that who knows how long will last. A better comparison is to total returns, not yield, though.
CONY has had heavy NAV deterioration and that's a fact. It has just increased it's distribution as well but, I'm not sticking more $$$ into it until COIN and BTC go up.
I’m 8 years from retirement and no way would I use YM in full retirement.. many reason and the biggest is consistency… a etf like spyi or call has a lower yield but pays consistent 49 cents and 30 cents. I like a consistent paycheck
I understand why some people in retirement go for YieldMax because it seemingly needs less upfront capital to get income. But, in 3-5 years, these funds start short changing retirees (nav erosion, inconsistent income, lower or stagnating distributions/share like what happened with qyld). It is a dilemma if someone has not saved enough.
Yieldmax funds have started doing call credit spreads, this should help the fund participate in more upside during bull phases stabilising the NAV going forward
Yes, it should if things go in the right direction for them, including large enough upward moves to cover the cost of spreads before expiry. Otherwise, they may waste money. In my opinion, YieldMax is adding more layers of complexity and unpredictability to their returns with spreads. But, I could be wrong, and it may help them.
@@andriyblokhin if you hold them along enough before you start taking out the distributions you yield on cost will drop dramatically and then you can start taking money out at that point I would still reinvest probably 25% of the distribution, which would still leave you with quite a distribution to spend
I don't know if reinvesting 25% is enough for some funds. But, I am not a fan of adding complexity to complex strategies that showed potential nav erosion. Call spreads will be another variable that may interact with their synthetic long + covered calls in unknown manner. I hope Tidal has experience with adding spreads.
No one should be relying on these funds. This is a place to put some funny money if you want to just generate some extra money and not worry too much about the NAV.
@@andriyblokhinIf you have these funds in a Roth IRA you can buy sell and receive dividends with no tax implications, so you can experiment with anything you want and if it's not performing move back to a more stable dividend paying Stock or ETF.
@@andriyblokhin You don't know hence the experiment so if you're a person that prefers to hold longer term and are concerned with price erosion instead of income, being in a Roth you can easily exit that position if it starts to fall in price more than you're comfortable with and have no tax implications, then go into a more traditional dividend payer but my strategy isn't to hold I'm playing the ex dividend game in and out of various funds depending on the ex date, and add those profits to the next buy to gain higher dividends on the next fund I purchase, the ex dates are far enough apart on many of them to take advantage of getting several payouts per month it's all done in a Roth.
What are your thoughts on YieldMax ETFs for retirement? Let me know below!
I love YMAG & YMAX , MSTY & CONY no problem so far.
As long as you or I know what we got into and happy with it, there is no issue. Problems with these funds tend to appear with time, like several years. YieldMax funds are relatively young. You also have to look at alternatives to see your opportunity cost of investing in something else.
Most people close to retirement go with these funds because they require smaller capital upfront. But, almost for sure these funds will start short changing them in 5-10 years if they don't reinvest at least some of their dividends. Even with that, other dividend funds provide better returns (and much faster growing dividends that will likely smoke YieldMax in 5+ years), though they may require higher capital upfront to live off dividends alone.
It is a big dilemma with people going into retirement with very little saved. I understand why these funds are so popular. But, if someone has enough saved to go with other funds like SCHD or even REITs, they could be a better alternative long term.
You are al lmissing the point. Yialdmax Roundhil, defiance have ALWAYS advertised themselves as INCOME investments. This means they are more concerned about yield than NAV stability, This gives the flexibility of re-investing for long term, pulling for regular income, or even buying other assets, like maybe VOO or SCHD or any combination like that.
That's what I also said at the end of the video. They have their own costs and benefits. The problem arises when people jump into them, not understanding their risks well.
And YOU'RE missing the point that these ETF's are a smoke and mirrors game. They get your attention by paying you a dividend, to distract you from the fact that every month the value of your account is going down, even when the dividend is taken into consideration. All of these ETF's are going to zero, eventually, because they are unsustainable, and may God help you if you're buying these things on margin, because one day they will stop trading, and your account to go to zero, but your margin balance will still have to be paid. It doesn't magically disappear when your assets are made worthless. Relying on these for long term income is not smart, because they won't be around long enough for that.
One percent is not expensive when it’s giving you a yield of 60% or more. It’s all relative. I love my CONY, MSTY, NVDY.
These funds did very well so far, no doubt. Massive outperformance that who knows how long will last. A better comparison is to total returns, not yield, though.
CONY has had heavy NAV deterioration and that's a fact. It has just increased it's distribution as well but, I'm not sticking more $$$ into it until COIN and BTC go up.
I’m 8 years from retirement and no way would I use YM in full retirement.. many reason and the biggest is consistency… a etf like spyi or call has a lower yield but pays consistent 49 cents and 30 cents. I like a consistent paycheck
I understand why some people in retirement go for YieldMax because it seemingly needs less upfront capital to get income. But, in 3-5 years, these funds start short changing retirees (nav erosion, inconsistent income, lower or stagnating distributions/share like what happened with qyld). It is a dilemma if someone has not saved enough.
Yieldmax funds have started doing call credit spreads, this should help the fund participate in more upside during bull phases stabilising the NAV going forward
Yes, it should if things go in the right direction for them, including large enough upward moves to cover the cost of spreads before expiry. Otherwise, they may waste money. In my opinion, YieldMax is adding more layers of complexity and unpredictability to their returns with spreads. But, I could be wrong, and it may help them.
@@andriyblokhin if you hold them along enough before you start taking out the distributions you yield on cost will drop dramatically and then you can start taking money out at that point I would still reinvest probably 25% of the distribution, which would still leave you with quite a distribution to spend
I don't know if reinvesting 25% is enough for some funds. But, I am not a fan of adding complexity to complex strategies that showed potential nav erosion. Call spreads will be another variable that may interact with their synthetic long + covered calls in unknown manner. I hope Tidal has experience with adding spreads.
No one should be relying on these funds. This is a place to put some funny money if you want to just generate some extra money and not worry too much about the NAV.
I am trying to understand why people (especially in retirement) put money in YieldMax. Their risks can outweigh their benefits.
@@andriyblokhinIf you have these funds in a Roth IRA you can buy sell and receive dividends with no tax implications, so you can experiment with anything you want and if it's not performing move back to a more stable dividend paying Stock or ETF.
If in a Roth you can experiment with these funds and exit if it's not performing to more stable dividend options no tax implications.
@holdlgang when you invest in these funds, how do you choose which one to hold?
@@andriyblokhin You don't know hence the experiment so if you're a person that prefers to hold longer term and are concerned with price erosion instead of income, being in a Roth you can easily exit that position if it starts to fall in price more than you're comfortable with and have no tax implications, then go into a more traditional dividend payer but my strategy isn't to hold I'm playing the ex dividend game in and out of various funds depending on the ex date, and add those profits to the next buy to gain higher dividends on the next fund I purchase, the ex dates are far enough apart on many of them to take advantage of getting several payouts per month it's all done in a Roth.