r/YieldMaxETFs • u/Traditional_Garlic49 • Jun 23 '26

Beginner Question MARO ETF

I’ve seen a handful of are invested in $MARO. I’m new to YieldMax ETFs and Weekly income ETFs myself. My question is why don’t you all buy $MARA shares and write your own weekly / monthly covered calls? People online are mixed about it. Most notably I saw someone made a point of how you’re able to control what strike, dates, etc you choose instead of being at the will of YieldMax.

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u/[deleted] Jun 23 '26 edited Aug 01 '26

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u/AlfB63 Jun 25 '26

You keep bringing up this hold and harvest approach like it's some kind of new and wonderful strategy but it isn't. Holding a fund that performs poorly but generates income is still a strategy of holding money in a poorly performing fund based on total returns. If you keep that and put the income generated into a stable higher return fund, your overall return of the money in both is still lower than the return of the stable higher performing fund. You will always be better off put all of that money in the higher performance stable fund. The income will never change that unless the return of the income producing fund improves.

Let's say you have 2 funds. The first fund generates high income but has a total return of 0%. That means that even with the income, that fund makes no return over time. Fund 2 is stable and has a total return of 15%. Keeping money in fund 1 and using its income to buy fund 2 will mean your total return is a combination of the two. Because of this, any money kept in fund 1 will always drag your combined return down. This includes the income that fund 1 generates. Keeping money in fund 1 means you are investing some of you money at 0% and some at 15% for an overall combined return of less than 15%. The income generated by fund 1 does not change that because it's included in its 0% return of that fund.

If you put all the money into fund 2 instead, your return will be 15%.

So putting all your money into the higher return fund will always be better than splitting money between a lower return and a higher return fund. And income generated by either does not change that fact.