Entire video is him complaining about nav erosion . As soon as you hear somebody complaining about nav erosion they don't understand high-yield ETFs. Same way you don't understand inflation.
My view is that MSTY is just a watered down version of MSTR. It will underperform when MSTR goes up (because of the written calls), and it will outperform when MSTR goes down (offsetting some of the downside with the premia it collects on the net written options). Additionally, investors lose the expense ratio. My sense is that the hype is completely attributable to MSTR's share price appreciation since MSTY's inception.
Tha nav is currently on hyper-growth, doubling from $2B a month ago to $4B today Reddit and Twitter threads on msty indicate the mania, If bitcoin stays above $100k or goes up, mstr stays above $400 or higher... msty mania will most likely continue
Are you still trying to claim that an investment in Home Depot did not beat the rate of inflation. Despite it being demonstrated that Home Depot returns spanked the inflation rate. The educational material has been provided to you yet it appears you have not learned a thing. You better hope that your distributions from MSTY exceed your initial investment so at least you get your capital back. NAV erosion by design is an idiotic idea. Similar to a Ponzi scheme you may be one of the lucky ones who got in early and made out — assuming you take the money & run. Most MSTY investors will be left broke and upset in the long term. If it seems too good to be true then it is too good to be true — is a good rule of thumb when it comes to investing. The only people making out are ones taking the large management fee at YieldMax as they shear all the retail sheep.
First of all, your position isn't outperforming inflation currently... You've got 400k trapped in Home Depot paying 2.3%... hoping it's going to continue with capital gains when it could very likely go down or sideways for multiple years. No, I don't hope my capital is preserved. I don't care about my capital. All I want is the dividend. It's not too good to be true because you have to be prepared to lose capital in return for dividends. If you get in at the wrong time, your dividends may not cover the nav erosion in the short term, but over time it will. If you had half a million in Bitcoin over the last 6 months you've watched it go from half a million down to $300,000... What's the difference? The difference is you're not getting paid LOL.... You've watched your position come down from probably over 500,000 to now barely 400,000... What about that?
I am earning a stable 92% yield on cost with minimal risk for an equity on a stock that has greatly outperformed. You are receiving inconsistent distributions on a ETF which is eroding and where the 100%+ yield is not likely to last more than the next few months. This is not an investment, it is a painful yield trap.
You're earning less than $9,000 a year. Your investment is losing more than $9,000 a year due to inflation. The same investment and MSTY would be giving you close to $50,000 a month. Do you even need to do the math?
So with that confidence and your risk control of position sizing, what percent of your portfolio do you have invested in MSTY