YieldMax Universe Fund of Option Income ETFs (YMAX) attracts investors seeking high yields via covered calls but requires careful consideration of total returns and expenses. Comparatively, Vanguard Dividend Appreciation Index Fund ETF (VIG) provides solid long-term returns with a modest yield. Although YMAX has posted a 17% return in its short existence, it also carries a hefty 1.32% expense ratio and is currently down 20% year-to-date. This analysis underscores the importance of evaluating funds holistically beyond just yield to make informed investment decisions.
High yields can entice investors, however, total returns and expense ratios play a critical role in assessing the true performance of funds.
While YMAX shows higher returns on paper, its exorbitant expense ratio significantly impacts the overall investment outcome, overshadowing its short-term gains.
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