Neutral
Seeking Alpha
1 month ago
YMAX: Massive Distribution Paid Weekly, But Significant Erosion Likely To Continue Without Reinvestment
YieldMax Universe Fund of Option Income ETF (YMAX) offers a massive weekly distribution, currently yielding 47.23%, via a fund-of-funds approach targeting volatile single-stock ETFs. However, YMAX's distribution leads to significant price erosion, requiring substantial reinvestment to maintain principal, but total returns remain relatively respectable. The fund's synthetic long positions and call writing on volatile names drive high income but also amplify risk and price volatility compared to broader market ETFs.