Yieldmax ETF

[yslvlys]

I actually plan to hold on to my yieldmax but I only hold about 50 shares of each fund
TSLY
AMDY
OARK
NVDY

I might add two more CONY and AMZY but at most only 50 shares each

I did consider topping up and putting more but after the replies, I think I just stick to 50 shares at most and look else where.

I have small sums in TSLY, AMZY, GOOY, NVDY, AMDY, FBY, MSFO, APLY for 3-6 months. So far so good. Hesitating on CONY and NFLY. I do also have small sums in the actual underlying shares as well. Yeah don't overcommit. Treat this like high risk crypto investment, except that I think the risk is lower but still a bit high.

 

[sglandscape]

How is this different from selling out of the money options, and then paying it out as dividends? The risk is low when market isn't volatile or largely going up, but it's inefficient due to WHT for Singapore tax residents. And why not take part in the gains of the underlying more directly?

 

[yslvlys]

How is this different from selling out of the money options, and then paying it out as dividends? The risk is low when market isn't volatile or largely going up, but it's inefficient due to WHT for Singapore tax residents. And why not take part in the gains of the underlying more directly?

About the same. Just that you are paying a fee for someone to do all the work. The high yield is worth it even with WHT imo. I do both, I have the undelying as well. Will see how it goes.

 

[Philipkee]

How is this different from selling out of the money options, and then paying it out as dividends? The risk is low when market isn't volatile or largely going up, but it's inefficient due to WHT for Singapore tax residents. And why not take part in the gains of the underlying more directly?

Mentioned earlier but for me, cos I tend to panic buy and panic sell and keep my eyes glued to the screen when markets open. So I realise better for me to just collect dividends and ignore monitoring the markets.

 

[Spirax]

Can also do your own credit and debit spread, no WHT 30% too

 

[reddevil0728]

I actually plan to hold on to my yieldmax but I only hold about 50 shares of each fund
TSLY
AMDY
OARK
NVDY

I might add two more CONY and AMZY but at most only 50 shares each

I did consider topping up and putting more but after the replies, I think I just stick to 50 shares at most and look else where.

You just need to be prepared that these are all bets you are ok to lose.

Again, reminder. Now is still “bullish”

bloodbath time is another matter

 

[yslvlys]

You just need to be prepared that these are all bets you are ok to lose.

Again, reminder. Now is still “bullish”

bloodbath time is another matter

Bloodbath means drop like more than 20%? Hard to imagine Nvidia, AMD, Microsoft will have such drastic drop frequently if ever. For ARKK of course as it's portfolio companies all not making money. A few such drops here and there the option income can still cushion.

 

[reddevil0728]

Bloodbath means drop like more than 20%? Hard to imagine Nvidia, AMD, Microsoft will have such drastic drop frequently if ever.

I think it's important to separate probability and possibility.

If you have accounted for both, then you have made a conscious decision.

it is only an issue if it is an unconscious or biased decision

 

[ToonBlue]

Just a note. You need to be able to take it when it drops...

 

[reddevil0728]

Just a note. You need to be able to take it when it drops...

ya a lot of ppl very interested in such stuff now cause quite bullish. they never it when bloodbath

 

[yslvlys]

I think it's important to separate probability and possibility.

If you have accounted for both, then you have made a conscious decision.

it is only an issue if it is an unconscious or biased decision

It is the same for equities when it drops. No diff.

 

[yslvlys]

ya a lot of ppl very interested in such stuff now cause quite bullish. they never it when bloodbath

YieldMax is not for bullish market.

 

[reddevil0728]

It is the same for equities when it drops. No diff.

so long it is an informed decision. it is ok.

 

[tangent314]

This looks like a terrible investment in so many ways it's kind of mind boggling the weird arguments made to justify this purchase. You are throwing money away at expense ratio, dividends tax and taking on counter-party and interest rate risks for far lower performance.

TSLY is +27.48% YTD total returns not including dividends tax, source: https://www.etf.com/etfanalytics/etf-comparison/TSL-vs-TSLY
TSLA is +129.86% YTD, no dividends tax

It's like burning away 45+% of your own money

 

[yslvlys]

This looks like a terrible investment in so many ways it's kind of mind boggling the weird arguments made to justify this purchase. You are throwing money away at expense ratio, dividends tax and taking on counter-party and interest rate risks for far lower performance.

TSLY is +27.48% YTD total returns not including dividends tax, source: https://www.etf.com/etfanalytics/etf-comparison/TSL-vs-TSLY
TSLA is +129.86% YTD, no dividends tax

It's like burning away 45+% of your own money

Dude when u compare during a bull market, of course buying the underlying always win. TSLY is one way for diversification from TSLA. It's llike saying why buy IWDA when TSL is up 129% this year

 

[BBCWatcher]

Why don’t you just construct an options straddle or strangle on the underlying stock or ETF if you want to bet on volatile stocks/ETFs being volatile? It isn’t hard to do, and you won’t have 30% dividend withholding taxes to pay.

 

[Philipkee]

Why don’t you just construct an options straddle or strangle on the underlying stock or ETF if you want to bet on volatile stocks/ETFs being volatile? It isn’t hard to do, and you won’t have 30% dividend withholding taxes to pay.

I am kind of a noob in investment. Most of my investments have all been dividend yielding (mostly unit trusts with Uob). Even the stocks I do get are dividend yielding. I tried day trading or holding into growth stocks but I tend to panic buy and panic sell.

I have heard options trading can make a lot of money but I don’t think I have the inclination for it. Dividend stocks you just buy and forget

 

[BBCWatcher]

Dude when u compare during a bull market, of course buying the underlying always win.

These derivatives also can (and do) fall a lot, and reduce dividends.

TSLY is one way for diversification from TSLA.

No, it’s definitely not that. TSLY doesn’t do anything (except decay) if TSLA’s share price doesn’t move.

It's llike saying why buy IWDA when TSL is up 129% this year

No, it’s not like saying that. It’s like saying if you’re going to bet on Tesla why on earth would you pick such an inefficient, high cost and high tax way to do it? If you want to bet on Tesla but with less risk to your portfolio then just take a smaller position! That’s easy.

 

[BBCWatcher]

I am kind of a noob in investment. Most of my investments have all been dividend yielding (mostly unit trusts with Uob). Even the stocks I do get are dividend yielding. I tried day trading or holding into growth stocks but I tend to panic buy and panic sell.

I have heard options trading can make a lot of money but I don’t think I have the inclination for it. Dividend stocks you just buy and forget

Maybe study up on this stuff then? An options straddle or strangle is the favorite choice for people who don’t like risk but who want to bet on volatility. (Which is what these Yieldmax ETFs are, but expensive.)

….Or just buy 3 shares of Tesla and log off?!?

 

[Philipkee]

Maybe study up on this stuff then? An options straddle or strangle is the favorite choice for people who don’t like risk but who want to bet on volatility. (Which is what these Yieldmax ETFs are, but expensive.)

….Or just buy 3 shares of Tesla and log off?!?

Omg
https://www.myskillsfuture.gov.sg/c...ail.html?courseReferenceNumber=TGS-2021005373

I just realised I can use my skills future to learn about options trading