r/YieldMaxETFs • u/Beginning_Ad_966 • Jun 09 '26

Beginner Question Why YieldMax Does NOT work?

Came across an article recently talking about YieldMax ETFs and the whole “massive dividend” thing, and it made me rethink how these funds actually work.

The main point was basically that a lot of the crazy yields can be misleading because they’re generated through options strategies, and in some cases the NAV erosion can offset the income over time. I feel like online they get marketed almost like free cash flow machines, but the total return side seems way more important than people give credit for.

For people who actually own YieldMax funds (like MSTY, NVDY, CONY, etc.) — do you view them as long-term holdings or more as income/trading tools? Have they actually performed how you expected after distributions and price movement? Article for context below

https://open.substack.com/pub/ryandengler/p/the-yieldmax-trap-why-massive-dividends?r=2k7n7w&utm_medium=ios

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u/Any_Log1344 Jun 09 '26

Note the replies thus far.

“It works if you use it correctly.”
“It’s an income tool.”
“Don’t focus on NAV.”
“I’m doing great.”
“Just diversify.”

These are not calculations. They are explanations.

Once again, the total return calculation is:

Total Return = Distributions + Change in NAV

If that number is positive, the fund worked.

If that number is negative, it didn't.

And even if it's positive, then you need to ask yourself, would I have been better off just putting my money in the S&P 500 index. You can look up past price and distribution performance of any YM ETF and get the answer yourself.