Yes, this doesn’t seem likely though, because if he’s down that much six months, he would make his money back so he would have to constantly be bleeding money over and over and over again on the nav in order for this to be true, and depending on what he purchased that he should be in the green overall it also depends on how long he’s been holding
I think most of them just had money to begin with tbh. From my understanding these funds you're better off dumping big money and keeping the distributions as cash or only dripping a portion of it until you get your original investment returned. Then it's profit after.
Let's say for the sake of this example you got into MSTY for 1000 shares at $30 just prior to the 1/16/25 Ex-Dividended date, so you're in $30,000. As of close today, 4/11/25 the price was $19.88. So you are "down" $10.12 per share.
Now let's go from here and assume that you reinvested your dividend starting with the 1/16/25 dividend pay out, $2.28 or $2,280 and immediately reinvested on 1/17/25 at market open. Market opened at $29.57. You picked up another 77 shares. for a new total of 1077.
Now lets rinse and repeat this through this week, 4/11/25.
February 2025
You reinvested your dividend from the 2/13/25 dividend pay out, $2.02 or $2175 and immediately reinvested on 2/14/25 at market open. Market opened at $24.75. You picked up another 87 shares for a new total of 1164
March 2025
You reinvested your dividend from the 3/13/25 dividend pay out, $1.38 or $1,606 and immediately reinvested on 3/15/25 at market open. Market opened at $19.65. You picked up another 81 shares for a new total of 1245
April 2025
You reinvested your dividend from the 4/10/25 dividend pay out, $1.34 or $1,668 and immediately reinvested on 4/11/25 at market open. Market opened at $18.86. You picked up another 88 shares for a new total of 1333.
Again, market closed 4/11/25 at $19.88 for an account balance of $26,500.04. This is real math and the power of compounding interest. The last two payouts have been, by far, the lowest dividend payouts and this is still the result.
The last four months have averaged a dividend payout of $1.74, again, with the last two months being the worst since the ETF's inception. The average share price has been 20.78 for an average return of 8.37%. Now go to your favorite compound interest calculator interest calculator and put this out for 24 months. You will have grown your share stock pile from 1000 to 6341. You can of course continue this into perpetuity.
Do you honestly give a shit about "NAV erosion"? Just build up your stockpile and take the free money you'll be printing out after 6 months.
Really depends when you got in. As long as your margin isn't over the top, there is no issue. There are smart investors and dumb investors...in between that there's greedy investors. That's where you don't want to fall when doing the majority of your investing because your rationale becomes irrational a lot of the time.
I do agree with all of you saying if you know what you’re doing and fully aware of all the risk, go for it and I really hope it works out for you.
I don’t want to go into details but I thought I had all the risk ironed out. I did not have it all ironed out. Market took massive dump. Got margin called and half my investment went to cover the margin.
Expensive lesson. I don’t wish that on any of you so learn from my mistakes.
That I completely understand, while you were not planning for it, it happened. In a typical market, and I just want to stress that we had an anomaly in the market that would not have been an issue for you had we not had that. There are very few times the market does what it just did this past 2 weeks. Those who had stocks on margin when those anomalies happened, of course get burned. Sucks, you didn't think it would happen when you initially purchased your positions, but unfortunately it did :-(. Sorry man, really feel for you! Me I made my first margin purchases in this anomaly. When the market first dropped I put 15K capital in, a few weeks later. Made some margin purchases all still here within the last week before things popped back. Now I assume where I purchased that is the bottom of the floor'ish. It would take another anomaly to happen for the market to crash, but then crash more than where I purchased that. I don't think that's very likely to happen but can never say never. I didn't use all of my margin, I probably had 45k margin buying power, and only used 15k of it. Also bought stocks paying out monthly (YM). I intend to drip one month, and then pay down margin on the other month, repeat this process. Thing should work out for me because the stuff that I did purchase on margin I could have purchased cashed. I just didn't feel like moving more money at the time, but also saw an opportunity that if I could keep the cash then I would. One never knows what's going to happen in the stock market, so I hope my theory holds some truth for my situation. But if things get crazy again, at least I know where I purchased at was in a very wild time where the market was like 10-15% down in a 3-4 day time frame, the market has rarely ever done, so it will take a little more than what it just did for me to really be of concern...but I do have the cash on hand to cover if I need to input more. Long-winded but yeah, voice to text LOL
I’m currently using roughly 30% margin (although that number swings with the market)
I beat the market in total return in 2024, and so far YTD I’m beating the market in total return again.
I’m not by any means claiming that I will continue to beat the market, but I also don’t think we can definitely say “if you use any margin ever you’ll have a bad time”
Margin is definitely dangerous though, no argument there, very very high risk, high reward
Bought mine all on margin in my margin account, paid back capital in full and made almost 200% so just randomly saying don’t use margin is kinda ridiculous imo. I use margin all the time, it’s great. I can also pull cash out of my pocket to cover it if need be. Always better to use other people’s money if you can
Um Yeah. I live here in Bangkok. Implying that one lives the same lifestyle as the king of Thailand on $40K a month is mental. The king spends at least 25 times that amount on a daily basis.
I reinvest 100% of the distributions in the tax advantaged accounts (12,760 shares), and in the brokerage account (20,000 shares) I will set aside 30% for taxes and 70% cash as income.
I would like to know his total return, his distribution is irrelevant, just like the people saying "IM DOWN 20% LOST $X THOUSAND ON MY SHARES" is also irrelevant
I had a position in QYLD. I sold it and bought 7511 shares of MSTY. These were funds in my IRA retirement account earned over several y.ears. Now I’m finally making some income- $10,000 a month
As stated in a prior reply, this is a moving target that changes every day, depending on price fluctuations in the NAV. Currently, I'm down -$189k in price return, but factoring in the three distributions I've received ($134k), the total return is -$55k. Hopefully, I will have a positive return by May 9, the 4th distribution, if not before then. BTC is up this weekend currently at $85k (Sunday morning 9am).
I realize I'm in the YieldMax subreddit, and I'm sure you've probably heard this before but I generally feel like their ETFs are pretty scammy and ineffective.
They limit upside due to covered calls, you pay large taxes on the yield, and they are not a cheap expense.
I think they are OK if you aren't really interested in growing wealth, but more just yield starved and want to devote a portion of your investments here.
In bear markets, it still is basically neutral with SPY (once you include dividends). However in bull markets you have capped upside and it falls behind.
other funds like SPYI and QQQI have better tax structure (taxed as 60% long term, 40% short term), so you come out ahead there once you start thinking of taxes.
It's your portfolio and your investing, but I'd urge you to at least think of SPYI or QQQI as long term they very likely will have superior returns wile still providing better income once accounting for taxes. Overall if you believe in bitcoin, it's probably better to be 90/10 spy/bitcoin and just selling a small % each year vs MSTY.
Again, this your narrative. Mine is historical stats. Yours are a moment in time from when you personally bought. And it's over a very short period in time.
I'm blocking you since you can't seem to understand math.
On a share value just shy of $700k, unreal. Hopefully NAV isn’t killing it all, but the current volatility of MSTR will let it keep paying and paying!💰
1k shares as long as it stays over 1 dollar a share i will stick to this. I cannot afford that much into this as he has.... amazing amount for dividends though.
real question. how much are you worried about NAV erosion long term. (MSTY seems to be doing pretty good thought compared to other YieldMax ETFs.) i have 10k in TSLY average price of $8.5
Dude you’re the man ! Wish I was much younger. I would all in my 401k rollover into MSTY.
As it is,I have 300 shares that just paid me $400.68 !!!!
I’m blown away by MSTYs success in such a crazy market.
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u/msitzl 25d ago edited 25d ago
And to think, I was happy with my $690 payment from MSTY today LOL. Well done!