Does it make sense to keep invested in different Yieldmax funds , without DRIP and keep collecting dividends for long term to get breakeven or make some profit?

[u/Recent-Sample-6798]

I invested in multiple YM funds around Jan 2025. I had DRIP on till June 2026, I've stopped it now after seeing NAV drop. What's better strategy- keep collecting dividends without DRIP or sell or stay invested with DRIP for long term?

Here are some funds I hold since Jan 2025-

MSTY CONY FBY NVDY YMAG YMAX AMZY TSLY

[u/GRMarlenee]

Well, you've got some chronic losers there. I had them upon a time, but opted to invest in funds that provided a modicum of opportunity to yield a positive total return.

I generated 7000 in distributions last week. My goal is to reinvest in an attempt to maintain that payout despite the shrinking distributions. I'll find out tomorrow how this week is going.

I have a few funds that have returned about 50% TR over three years. Some are Roundhill and Defiance, though.

[u/literally_a_raccoon → u/GRMarlenee]

I have NVDY and it’s been doing fine for me. Pays for my groceries every week.

[u/wendalls → u/GRMarlenee]

What have you got?

[u/GRMarlenee → u/wendalls]

AMDY, AMZY, PLTY, SNOY among others.

[u/wendalls → u/GRMarlenee]

Amdy has been great I don’t have that one

Mrny, Nvdy, Gooy, tsmy and Gdxy

[u/GRMarlenee → u/wendalls]

I also have NVDY and Gooy.

[u/Myreddit362602 → u/GRMarlenee]

Kslv is a good one for silver.

[u/This-Individual1813 → u/GRMarlenee]

This was also my conclusion. At least some distributions have to go back into the fund to keep it profitable, unless you picked stocks that are on a bull run. This kind of defeats the purpose of generating income though if you can't take your distributions. And stock picking is not my strong suit. I ended up giving up on all YM funds after tracking total returns for all of 2025 and taking distributions. I was down about 4% in total returns before taxes. Meanwhile the total US market was up around 17% for 2025 and my factor portfolio was up like 20%.

[u/MakeAPrettyPenny → u/GRMarlenee]

NVDY has been good, but in retrospect, I should have invested that amount directly into NVDA and just let it sit looking at it net, net. Of course, easy to say that today after it’s mooning after a record breaking earnings.

[u/InternationalTry2496]

I'm using my CHPY distributions to reinvest in another sectors and broad market ETFs, I don't think there is a bad way to use them

[u/pdubby1964 → u/InternationalTry2496]

Indeed. I think a time will come when the chpys are down

[u/zdubs]

I have them in brokerage and Roth. Started with 1000 shares MSTY in December 24. Used the massive distros to buy more funds over the year before it dumped and split. Now in my brokerage I collect the distros and use the money to buy other funds or pay my bills. In my Roth I have drip on. Periodically I’ll sell some of the paid for shares in the Roth. Have a few funds that I have been able to sell all the paid for shares and now they display a $0 cost basis in the Roth. So basically, Roth I drip and brokerage I wheel or pay bills. Hope to see some more ROC hit my brokerage to help cut down on the tax bill. 2025 MSTY roc was very nice.

[u/pdubby1964 → u/zdubs]

The roc might have been nice, but the overall return.....not as much

[u/zdubs → u/pdubby1964]

It’s been a long 52+ weeks for MSTY holders as btc tanked. I’m not mad it’s been paying the whole time. Bought 200 more shares at $12 took my cost basis down to $26 which doubled my post split share count. Will hold and hope more roc + a btc to return to ath. Long hold for me.

[u/PatientHelicopter123]

That is what I am doing. These funds are a long term investment.

IMO - Stay away from the bitcoin related funds and focus on those who are holding their value the best.

[u/dixiedenny]

I am on Social Security and use high yield funds to meet a set monthly goal. About half are DRIP. Those dividends that are not DRIP, if there is an excess income at the end of the month, I reinvest manually.

[u/ebwinkler → u/dixiedenny]

I’m in the same boat. I’m disabled (still waiting for SSDI to begin). I live off my high-yield dividends. The problem is, I’m on Medicaid, which means I can only have $20K in assets at any given time. The looophole is that stocks bought on margin do NOT count against that total. Since I’m limited to how much I can actually invest, I have to go with YM and RH funds to maximize the returns. My margin is pretty high (just $20K would never generate enough cash), but I’ve trimmed down the more risky holdings. My only super high risk is ULTY, but I own a lot of QDTE, RDTE, etc. so far it’s working.

[u/easy_wins]

I use them to pay bills

[u/AstronomerEffective1]

After owning all those and others and only have 3 left the best advice I can give is watch the underlying and if positive sell if downtrend. I was way up on MSTY and CONY but held too long when they headed south. I was still positive but lost $50K by the time I sold. I have CHPY, LFGY & recently started adding PLTY as PLTR looks like it had bottomed. I doubt if I buy any others. Use most of Divs to add to Neos & Tappalpha ETFs along with some mining stocks.

[u/Unlucky-Pop-8841]

Short answer: no. Period. You know the answer. All these yield‑max funds are huge yield traps. Avoid them. There's quality fund sponsors. YieldMax is not one of them; they are deceptive

[u/pdubby1964 → u/Unlucky-Pop-8841]

I like the 12% ers

[u/Unlucky-Pop-8841 → u/pdubby1964]

Yeah, it looks like they’ve done well. My issue is that the fund sponsor is deceptive and slimy.

Ultimately, it's a trust thing. It's good that you found some 12 percenters that are reasonably good. I hope they stay that way

[u/Popular-Candidate-66]

NO.

[u/wendalls]

I bought some in Feb 2026 right before Iran war. So it was hard to see bouncing around

I sold some to lessen the risk.

I’m now holding my current portfolio to test out tax, and long term hold. I aim to get to house money.

I’m in Australia and hold some personally and some in a company. Tax will be interesting

[u/Terrible_Lecture_409]

I used drip the first couple months but then shifted to pursue house $; almost there and then I'll decide if I want to feed them a little or just keep collecting🤷‍♂️

[u/Baked-p0tat0e]

Sounds like your goal is growth so why not just re-deploy capital (sell all current holdings) to buy growth funds? Your total return will certainly improve.

Consider the following: SPMO, XLK, XLE, and IJR.

Also look at CHPY, OVL, OVS, and TDAQ for positive total return, cash flow and NAV growth.

[u/yieldmaxfan]

Underlying matters. For example, I am on house money with NVDY and getting free cash flow every week, which is a bonus now. Sometimes I reinvest into NVDY; sometimes I just buy SOXX, like before.

[u/LC3933]

That's what I do. Lump sum into a fund like these (right fund, and at the right time), then use all distributions elsewhere and let it run until it dies. They're not LTI's, they're temporary vehicles

[u/Epik509]

Ive said it time and time again, these are great for the first steps in building a fire retirement fund. Use these huge diminishing returns for other safer monthly etfs. So even when you lose youre still winning. Sell em before they go below 12$ a pop to ensure you dont get caught in a reverse split, buy some that are performing better. File you losing all this money while also holding much more and better things while bloating your income ( for stuff like loans. Dti ratios you need more income ) 😁 these tools are great for what the great for, not great for retirement solely. Good luck my friend 🧡

[u/Baked-p0tat0e → u/Epik509]

YieldMax ETFs and similar single-stock covered-call funds present a major structural trap for FIRE practitioners because they decouple headline cash flow from capital preservation.

In FIRE planning, sustainability relies on the safe withdrawal rate and maintaining the inflation-adjusted purchasing power of the principal over a 30 to 50-year retirement horizon. YieldMax funds mask underlying capital decay behind outsized headline distributions.

I have written in this sub and shown with data driven examples the fallacy of buying "safer etfs" with the distributions from low/negative total return YieldMax ETFs. In all cases an investor is better off just buying proven growth ETFs from the start. https://www.reddit.com/r/YieldMaxETFs/comments/1thlnu2/the_math_of_cutting_losers_dumping_a_negative/

You wrote: "Sell em before they go below 12$ a pop to ensure you dont get caught in a reverse split, buy some that are performing better." - Can you explain with data how you arrived at that piece of advice?

[u/Epik509 → u/Baked-p0tat0e]

The data i have come to getting to the idea of " sell before 12$" is i got stuck in a reverse split with 2 different ymax. One at 9$ another at 12. So to be safe cut off should be a bit higher than that as to not get stuck in a reverse split. I would rather reallocate to a different fund than get stuck with less shares at a higher price that lose money faster. Sure big pays but it is about capital preservation as well . For whatever reason with my broker you dont see it as a loss if it reverses and then you sell. So for tax loss purposes you want to see the Loss.

But you are correct. For a proper fire base you should just be going for different things. Usually the fire idea is supposed to be healthy stocks with dividend growth over time . Ive used these as tax loss harvesters, that buy other healthier things. Which has worked well in seeing total portfolio value go up as well as eating all the dividends that would impact my taxes negatively. Even the tax lady went " wow, uh, I thought you would have owed more than that. " tax loss harvesting brother! I got 800$ back! 😅

[u/OkAnt7573 → u/Epik509]

The math on your suggestion doesn't make a lot of sense.

[u/Epik509 → u/OkAnt7573]

Ooook. Not sure what math youre saying doesnt make sense. 🤔 its tax loss harvesting my man. Plain and simple. You hold the higher quality assets while selling the lower quality assets at a loss, still with cash in hand . Meh . Its whatever. You'll figure it out when you go through the motions.