Due to its large and frequent cash distributions, holding the MSTY ETF would have yielded at least 100% in 12 months.
Among the biggest names in dividend investing right now, MSTY needs no introduction as it's all the rage.
The YieldMax MSTR Option Income Strategy ETF offers high-yield exposure to Strategy and Bitcoin via a synthetic long position and a covered call strategy. The ETF is best suited for investors with a bullish Bitcoin outlook and a very high-risk tolerance, given its leveraged and derivative-based structure. Bitcoin recently reached an all-time high just below $123k as pro-crypto regulation -- the GENIUS Act -- changed investor sentiment for the better.
The MSTY ETF's large weekly cash payouts will undoubtedly tempt many Bitcoin bulls and Microstrategy enthusiasts.
MSTY offers an extremely high yield via aggressive covered call strategies on MicroStrategy, but this comes with significant downside risk and capped upside. Despite MSTR's massive gains, MSTY has drastically underperformed its underlying due to its options approach, barely capturing any price appreciation. MSTY exposes investors to all the downside of MSTR, especially given its Bitcoin risk, while limiting the potential for meaningful upside returns.
There is no question that dividends are among one of the most popular investor strategies right now, but it wasn't always this way.
MSTY and IMST both suffer from using highly volatile MSTR as the underlying, making option income strategies structurally weak for long-term investors. IMST does not offer meaningful improvements over MSTY in methodology, yield management, or risk mitigation based on current disclosures and early performance. Aggressive yields in both funds are misleading, as total returns are mostly driven by MSTR's price action rather than sustainable option income.
Bitcoin believers and passive income hunters can get huge monthly cash distributions from the MSTY ETF.
Yieldmax MSTR Option Income Strategy ETF's headline ~100%+ yield is mostly return of capital, not sustainable income, making the high payout misleading for long-term investors. The MSTY fund's synthetic covered call strategy on MicroStrategy Incorporated stock exposes it to significant downside risk, especially given MSTR's Bitcoin-driven volatility. While MSTY has outperformed peers in total return since inception, this is unlikely to be repeatable due to NAV erosion and unsustainable distributions.
The YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY) has captured significant attention among investors seeking high-yield income through its synthetic covered call strategy tied to Strategy (NASDAQ:MSTR) stock.
The YieldMax MSTR Option Income Strategy ETF ( NYSEARCA:MSTY ) has garnered significant interest among income-focused investors due to its extraordinarily high dividend yields, often exceeding 100% annually.
The YieldMax MSTR Option Income Strategy ETF ( NYSEARCA:MSTY ) has become a hot topic among income-seeking investors, thanks to its impressive dividend yields tied to Strategy ( NASDAQ:MSTR ), a company heavily invested in Bitcoin ( CRYPTO:BTC ).