The word is spreading like wildfire. Some of YieldMax's exchange traded funds (ETFs) offer huge annual distribution yields, and legions of passive income investors are loading up on these intriguing funds.
For as long as many people can remember, MSTY (NYSEARCA:MSTY) has been at the top of the YieldMaxETFs subreddit as the go-to for taking advantage of dividend yield.
There is no question that once you hit the “purchase” button whenever you make an investment in the stock market, it's immediately a gamble and a hope that the future will drive things in the right direction.
When it comes to the YieldMax movement right now, which is arguably as hot as it has ever been, there is no name bigger than that of MSTY.
What does the future hold for the YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY).
By deploying sophisticated options-trading strategies, the YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY) has produced substantial income from Microstrategy (NASDAQ:MSTR) stock.
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.