"The YieldMax Ultra Option Income Strategy ETF (NYSEARCA: ULTY) has become a lightning bolt of controversy among ETF investors. As part of the YieldMax catalog of ETFs, ULTY is one of the few based on a floating collection of 30-40 highly volatile stocks for its portfolio, with management discretion over which ones to utilize for its derivatives strategy, as opposed to fixed YieldMax single stock ETFs, such as are contained in its "fund of funds" YMAX."
"Since its inception launch price at roughly $20 in February 2024, ULTY has dropped in NAV to a $5.40-$5.55 range at the time of this writing. Although its proportionate weekly dividend distribution of roughly 10 cents per share has escalated to what is effectively a yield of 129.06% (as posted by Yahoo! Finance ), the shareholders and followers have split into two camps:"
YieldMax's ULTY uses a floating portfolio of 30–40 highly volatile stocks and management-selected derivatives positions, distinguishing it from fixed single-stock YieldMax ETFs. Since its February 2024 launch near $20, ULTY's NAV has fallen to roughly $5.40–$5.55. Weekly dividend distributions of about $0.10 per share have produced a nominal yield near 129.06% as reported by Yahoo! Finance. Investor responses have polarized: some sold and warned others, expressing regret and suspicion that dividends mask fee extraction; others are holding or buying more, treating the low NAV as a potential buying opportunity. The ETF's structure complicates standard market comparisons.
Read at 24/7 Wall St.
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