YMAX ETF: Striking A Balance Between High Yields And Risk Management

Nicholas Bratto
674 Followers
(7min)

Summary

  • YMAX is an income investment "fund of funds" using a blend of traditional and synthetic covered call strategies generating a TTM yield of 16%+.
  • YMAX is a diversified options ETF and has demonstrated risk mitigation in spreading its holdings across multiple YieldMax ETFs.
  • Despite impressive returns by the fund and it's underlying holdings, the fund's performance in varying market conditions remains untested, driving a "Hold" rating.

Volatility Ahead Warning Sign

JimVallee

In February, I published an article on YieldMax NVDA Option Income Strategy ETF (NVDY) concluding that while the fund's performance was notable, the risks of single issued stock investments, further convoluted by options trading, made investing into the fund

This article was written by

674 Followers
I’m deleveraging my emergency fund by investing in stocks, real estate, and businesses to own my income. I require high conviction in my portfolio of dividend-paying stocks and ETFs, which I select based on their risk-adjusted performance, diversification, and sustainability to ensure peace of mind.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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