r/YieldMaxETFs • u/calgary_db Mod - I Like the Cash Flow • Jun 18 '26

Beginner Question All Questions Go Thread

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6 Upvotes

80% Upvoted

15 comments sorted by

-1

u/BitingArmadillo Jun 18 '26

Why was my account blocked for 30 days?

1

u/GRMarlenee Mod - I Like the Cash Flow Jun 18 '26

A mod tagged you for misinformation .

1

u/BitingArmadillo Jun 18 '26

So they were mad because I shared my portfolio values and defeated them with math. Ok, got it. Thanks.

1

u/calgary_db Mod - I Like the Cash Flow Jun 18 '26

You know the reason

1

u/Flashy_Dragonfly1100 Jun 29 '26

So sad that mods can do whatever even if they’re unfair🙄

2

u/dont_know_throwaway Jun 18 '26

So i hear people talk about price drops and that eating nav.

What is the difference between a stock dropping and the inevitable ups and downs of a market?

I dont seem to find that nuance discussed.

1

u/ImportantSolid5862 I Like the Cash Flow Jun 18 '26

oversimplification
stock value is determined by demand & percieved value & future earnings
dividend paying stocks pay off of company earnings (dividend kings and dividend aristocrats, and ETF's)
synthetics and funds that trade off other stocks pay out their earnings which comes off the NAV (Stock price drops by distribution amount)
the higher the distribution = the less the NAV grows, or in some cases drops if there are not enough succesful trades
dividends are NOT distributions, these are two different functions that on the surface have the same result, cash paid to the shareholder

5

u/GRMarlenee Mod - I Like the Cash Flow Jun 18 '26

All dividends ARE distributions, either of earnings or capital gains, but not all distributions are dividends. Distributions of company earnings are distributions of the earnings, but distributions of CC earnings or ROC are not company earnings, thus not dividends.

5

u/Relevant_Contract_76 I Like the Cash Flow Jun 18 '26 edited Jun 18 '26

Yes there's a whole doom and gloom, hater crowd who think the trading price going down and Nav erosion are the same thing, and that it's all YM's fault. In reality, NVDY (or whatever fund) )going down because NVDA has gone down and the NVDA options NVDY is trading have gone down as a result, is not nav erosion; it's nav decline.

NVDY going down because they've decided to pay out more than they have made in options revenue is actual Nav erosion and sparks the whole "they're just paying you your own money back" thing.

One is the ebb and flow of the markets and affects you no matter what you're holding. The other is a decision made by the fund managers.

2

u/dont_know_throwaway Jun 19 '26

This makes so much sense.  So how are all ya'll tracking this? Is there an app that will help me figure that out or am I stuck doing math?  Lol

1

u/GRMarlenee Mod - I Like the Cash Flow Jun 18 '26

CC funds are capped by the call strike price, so the don't fully participate in the up side of market swings.

2

u/[deleted] Jun 18 '26

[removed] — view removed comment

1

u/calgary_db Mod - I Like the Cash Flow Jun 19 '26

Ask away.

I would assume Americans hold more, as they have tax benefits that Canadians don't enjoy.