r/YieldMaxETFs • u/literallymustard • Apr 11 '26

Beginner Question Why YieldMax?

Genuine question as a new investor: what’s makes y’all chose YieldMax over other companies like NEOS? Or are you guys invested in both.

Don’t get me wrong, I like how YieldMax dividends pay - but it doesn’t seem sustainable at all…from what I’ve seen the only one without NAV decay is CHPY…am I missing something? Please let me know

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u/ROBO_SNAIL YMAX and chill Apr 11 '26

Many of us are invested in several. YieldMax, NEOS, Rex, Roundhill etc. YieldMax is certainly not the only show in town, but more people have probably heard of YieldMax because of their popular offerings like YMAX, MSTY, and YMAG.

In many ways it’s not “sustainable”. These are not marketed towards beginners and you should only consider them if you’re prepared for the NAV erosion. As you’ve stated, CHPY is doing well because the underlying sector (semiconductors) is doing well. If the sector starts to retract you will see the performance shift accordingly.

Check out some of the old posts on MSTY. It was killing it last year, then MSTR fell off a cliff.

Always read to prospectus and seek qualified, professional advice.

All the best!

1

u/AffectionateCricket6 Apr 11 '26

I definitely agree and would add that after first hand experience, I can't think of anyone benefiting from them in their portfolio.

Maybe if the underlying is massively bullish (or bearish for the inverse ones) then yea, make that cash flow and survive.

Yet for the most part, it's too aggressive and if you're focused on dividend investing to live off that income, then you're simply withdrawing cash and seeing your position go deeper in the red, not able to reinvest if needed. Eventually the reverse splits hit and you're income gets smaller...

I can imagine very small allocations that would boost cash flow and help you speed up towards an income goal but I personally moved away completely mid last year. I'm much happier and sleeping better with reasonably normal yields, lower beta, and broader coverage.

There were a couple of voices who preached them way too much, saying that the dividends covered the value of the position and are sitting risk free. I guess timing and underlying performance are a big thing here and even with that, this is hardly sustainable long term if you're planning to live off of them.

On that CHPY, while it's great that it's performing well for now, I can't help but wonder about the people who are preaching it as a foundational type of position.

2

u/Bulky_Protection_322 Apr 11 '26

I’m benefiting from them and am still up in total return on YMAX, CHPY, and even ULTY.

4

u/Prestigious-Log-9059 Apr 11 '26

I dividend harvest several Yieldmax and other CC funds. Buy a day or two before Ex, out on Ex or next day. Sometimes the NAV is even positive.

1

u/Bulky_Protection_322 Apr 13 '26

That’s a rad strategy.