COIN - YMAX: 44% Distribution Rate From Popular Large Caps

2024-07-02 03:33:50 ET

Summary

• YieldMax Universe Fund of Option Income ETFs is an ETF. The fund falls in the "fund of funds" category, meaning that it will primarily invest in other YieldMax ETFs.
• The ETF's 44% distribution rate is achieved through option strategies on underlying stocks, but the rate is not fixed and depends on market performance.
• YMAX's total return in 2024 closely resembles holding its underlying stocks, and the ETF needs to be analyzed from a total return perspective.
• Investors have to be mindful of falling distributions and a NAV decline with falling stock prices.

Thesis

YieldMax Universe Fund of Option Income ETFs ( YMAX ) is an exchange-traded fund. The fund falls in the " fund of funds" category, meaning that it will primarily invest its assets in other YieldMax ETFs. The appeal for this name lies in the eye-popping 44% distribution rate, which is real, and we are going to fully analyze it in our article....

For further details see: