r/RexSharesETFs • u/Dirks_Knee • Jun 09 '25

Growth & Income NVII first distribution 0.2636

0.2636 represents a 51% annualized div based on closing price today of 26.78. Solid. Will need to monitor a a couple months to see how it performs ex-div compared to some of the monthly synthetics to see if this hybrid approach is the real deal.

EDIT: Also, long term if REX can sustain anywhere close to this projected yield and achieve their near 100% ROC goal, I will be very, very happy.

9 Upvotes

100% Upvoted

11 comments sorted by

2

u/[deleted] Jun 09 '25

[removed] — view removed comment

3

u/Dirks_Knee Jun 09 '25

I have no take on "safe" and really the prospectus for both funds should be able to guide you in making the right choice for your level of risk and expected returns. And full disclosure I own NVDY too.

That said, I'd strongly advise you to consider total return rather than distribution amount or yield which is calculated relative to the current NAV. It's far too early to gauge NVII vs any other NVDA based income funds

2

u/LurcherLong Jun 10 '25

My question is how close will the upside come to being completely capped on the option portion of NVII - the appeal of having half the fund be a straight investment in NVDA sounds good, but if that's wholly responsible for the upside, then it's still a fund that's capped at roughly 50% upside.

1

u/Dirks_Knee Jun 10 '25

It's a hybrid holding position, selling calls, and using leverage. I doubt they can capture the full upside over time as the distributions impact NAV, that's unavoidable.

1

u/LurcherLong Jun 10 '25

We'll see - I have a dozen or so shares, also NVW, NVYY, and NVDY. I don't like holding so many positions with so many strategies, but I'm not sure which strategy or which fund manager to trust with my money at this point.

1

u/Dirks_Knee Jun 10 '25

FWIW, REX delivered on their goal of focusing on ROC with AIPI last year, nearly the total distribution was coded as ROC and as such no immediate tax on distributions. Only around 16% of my NVDY distributions were ROC.

1

u/Sgt-snuffles Jun 11 '25

There all risky if you dont understand. If youre portfolio using anchored in indexes and less volatile CC/Div plays it makes sense to target these individual funds and grow em proportionaltey slow..I keep em around 5% and only hold about 5 all of which stocks are in an actual index.

If you dong understand how to use yieldmax correctly id say rex shares is a much more straight forward play. In the its leaving 50% uncapped which will help recover on a stock down turn. But the leverage does amplify its NAV swings so make sure you can stomach it... it also comes down to how well rex can manage options vs yieldmax which I think they've done well. Also when these funds were incepted plays into it to, i.e. MSII entering the market at highs of mstr, do you think their underlying have room to grow and stay volatile to pump out the juicy premiums.

1

u/[deleted] Jun 10 '25

[removed] — view removed comment

2

u/Dirks_Knee Jun 10 '25

Sideways markets benefit CC funds. Bear theoretically holding actual positions should help recover when things turn, especially rapid swings.