MSTY ETF's huge yield collapsed with MicroStrategy; BIGY ETF offers similar income with less risk via diversification.
The YieldMax MSTR Option Income Strategy ETF (MSTY) saw its headline yield plummet from over 200% to a fraction due to MicroStrategy's 75% stock drop, causing distributions and share price to fall sharply. MSTY's concentrated exposure to one volatile stock caused large losses and capped gains, compounded by fees and tax treatment. In contrast, the YieldMax Target 12 Big 50 Option Income ETF (BIGY) uses the same covered-call strategy but diversifies across 50 large U.S. companies, maintaining a near 12% yield with less risk and steady monthly payouts. BIGY has outperformed MSTY and major benchmarks year-to-date, though it still caps upside and carries market risk. Investors seeking option-income with lower blow-up risk might consider swapping MSTY for BIGY, especially in taxable accounts or IRAs.
The YieldMax MSTR Option Income Strategy ETF (MSTY) saw its headline yield plummet from over 200% to a fraction due to MicroStrategy's 75% stock drop, causing distributions and share price to fall sharply. MSTY's concentrated exposure to one volatile stock caused large losses and capped gains, compounded by fees and tax treatment. In contrast, the YieldMax Target 12 Big 50 Option Income ETF (BIGY) uses the same covered-call strategy but diversifies across 50 large U.S. companies, maintaining a near 12% yield with less risk and steady monthly payouts. BIGY has outperformed MSTY and major benchmarks year-to-date, though it still caps upside and carries market risk. Investors seeking option-income with lower blow-up risk might consider swapping MSTY for BIGY, especially in taxable accounts or IRAs.
What's Your Reaction?
