🧵 Deep Dive: $ULTY's March 2025 Strategy Overhaul – How It Transforms Income Generation

YieldMax's $ULTY ETF revamped its approach in March 2025, shifting from pure covered calls to a tactical, resilient model. This addresses past NAV erosion while boosting income potential. Let's unpack each change, mechanics, benefits, & risks 👇 1/9. Background: Why the Changes?

Pre-March: $ULTY used synthetic positions (swaps) for exposure to 15-30 high-vol stocks, selling calls for premiums. But volatility led to NAV decay & uneven payouts.

March 2025 tweaks: Direct holdings, protective options, spreads, flexibility, & weekly distros. Aims: Better alignment, downside buffers, upside capture. Since then, AUM ~$1.6B, YTD returns ~15.6%.

🧵 Yield vs. Yield on Cost: Decoding These Metrics for Better Investing Decisions

In high-yield plays like $ULTY, yields can dazzle—but mixing up "yield" and "yield on cost" (YOC) leads to confusion. One's for new buyers; the other's for holders. Let's break down how to interpret them wisely 👇 1/7. What is Yield (Dividend Yield)?

It's the current annual dividend (or distribution) divided by the current market price, expressed as a %. Formula: (Annual Dividend / Current Price) x 100.

This shows what income you'd get if buying today. For $ULTY, it's ~60-80% based on recent payouts—super high due to options.

🧵 Debunking $ULTY ROC Myths: It's a Tax Classification, NOT Economic Erosion!

High-yield ETFs like $ULTY often show distributions as Return of Capital (ROC), sparking fears of NAV decay. But YieldMax has clarified: It's just tax treatment, not "true" ROC eating your principal. Let's unpack the facts & why it's often a win 👇 1/7. What is ROC in ETFs?

ROC is a tax label for nondividend distributions—cash paid out that reduces your cost basis, deferring taxes. It's NOT an indicator of fund performance or economic loss. For option ETFs like $ULTY, premiums from calls often get classified this way.

🧵 $ULTY vs $YMAX: Battle of YieldMax's High-Income ETFs – Which Fits Your Portfolio?

YieldMax offers killer income strategies, but $ULTY and $YMAX take different paths. One's a diversified stock picker with options flair; the other's a fund-of-funds powerhouse.

Confused which to pick? Let's compare strategies, yields, risks, and more 👇 1/7. First, what is $ULTY?

YieldMax Ultra Option Income Strategy ETF ($ULTY) is an actively managed fund targeting high monthly (now weekly) income via covered calls on 15-30 volatile U.S. stocks like NVDA or MSTR.

It holds the stocks directly for real exposure, sells calls for premiums, and uses tweaks like protective puts to manage downside. AUM: ~$1.61B. Expense: 1.30%. Volatility: ~4.59%.