This is a dividend fund that invests only in Coinbase stock options. The fund doesn’t hold the stock. Its been moving up and down since its inception between 18-19 range up to 30. It is currently trading in the $20 range. The dividend is solid. I have held it for 4 months now and am very happy so far. This Yieldmax family of funds all do the same style of investing. The fee is in the 1% range for the funds and I don’t mind paying that based on the profits.
They have NVDY which does the same thing with NVDA, AMZY Amazon, MSFO Microsoft, MSTY Micro Strategy etc. It’s a new fund family and CONY is one of the first with a solid dividend history. On their disclosure they tell you they are high risk so be aware, it’s a high risk dividend fund. That being said they usually have 75-80% of their funds in bonds currently from my reading. All the funds that I have followed pay a nice dividend. I am retired and not affiliated with Yieldmax in any way. This is not a solicitation and I get no reward nor fee for sharing this. I am just a happy investor sharing on the forum my knowledge of this fund and have a pretty hefty position with this fund. If you add up the dividends for the last 4 months, I have made some cash. In one SEP IRA I am reinvesting the dividends. In another SEP IRA I am investing the dividends in stocks/etf’s. In a cash account, I am drawing some of the cash for expenses (retired). Let me know what you dividend fund investors think…doc
So I was looking at the Yieldmax ETF that invests in Microstrategy MSTR which only has a 3 month history of dividends. I took the 3 months of dividends and totaled them up. Then I multiplied it by 4 to get an idea of what the annual dividend might be and came up with around 135% dividend which currently makes MSTY etf the highest paying fund in the Yieldmax family. I may throw a little money at this ETF in light of how well it has started out of the gate. I like MSTR stock just like I like COIN, so it looks like it could be rewarding like CONY has been. This fund invests like CONY by using MSTR options to generate revenue for distribution to MSTY holders. It does not buy the stock like most of the Yieldmax funds. It is currently trading about the middle of its ETF share price range from my own estimation. I currently don’t hold any MSTY but am giving them a serious look…doc
My first thought is that is unsustainable. Projecting such one quarter return over a full year. . . well I wouldn’t count on it, and I’d be pretty worried about my principal staying intact.
Excellent point however CONY has 9 months of dividends and is approaching a return that looks like its gonna be 100% plus the ETF price has stayed in its trading range during that time ie no crazy crashes. I do appreciate the comment as that is one thing I was watching closely…doc
True but keep in mind that this is virtually a pure options investment, so cash flow is not tied to the normal “business output” of a business like dividends or interest would be.
As long as they correctly sell/buy options contracts, they could certainly continue.
From the Yahoo profile: ### ETF Summary
The fund is an actively managed ETF that seeks current income while maintaining the opportunity for exposure to the share price of the common stock of MicroStrategy Incorporated, subject to a limit on potential investment gains. It will seek to employ its investment strategy as it relates to MSTR regardless of whether there are periods of adverse market, economic, or other conditions and will not seek to take temporary defensive positions during such periods. The fund is non-diversified.
hi gene,
i have held the CONY position for 4 months. my initial entry was when the etf price was in the low 18 range. the total dividend return has been in the $7.40 plus range after 4 months and CONY announces a dividend today, so that will add to my gains. I’m watching the MSTY etf from this same family of funds because it is the highest paying monthly dividend, but also quite new. Thanks for the input…doc
edit: MSTY looks to be closer to its lows right now which in my humble estimation makes it a better buy than if it were closer to its highs. MSTR is trending down currently and my TA isn’t showing it as a buy. MSTR will go up and down based on bitcoin pricing, so when bitcoin starts to rise again MSTR will go up and so will MSTY
CONY dividend $1.57 todays premarket ETF share price $20.72
MSTY $2.33 $27.64
NVDY $2.47 $29.24
Pretty good dividends based on the current share price…doc
edit: this just bumped my total dividend in 5 months up to $9 which I am quite happy about as a retired person
Andy,
I think they will trend with the stock they invest in. If COIN goes down, for some reason CONY goes down too even though the ETF holds no COIN stock. Same for MSTR/MSTY. MSTR only holds bitcoin so its puzzling to me why this occurs. Reading about these ETF’s, I have found out that they usually hold somewhere in the 70-80% range bonds. Both CONY (10 month history) and MSTY (4 month history) are at the lower end of their trading range.
Interestingly NVDY (NVDA) has been trading options on NVDA for over a year and has a better history for evaluating it as an investment. The ETF price is high regarding the range (chart) and the annual dividend is in the 50-60% range which is not too shabby. It is trading at the upper end of its trading range.
I have been investing before these Yieldmax funds in QYLD and GLO during the market downturn and they reliably produced around 10% per year dividends while staying range bound.
QYLD held its ETF share value better so I ended up moving most of my investment over to it. Both of these dividend funds however made in the 10% annual dividend while paying a monthly dividend. I hope I answered your question…doc
I calculated the monthly return on MSTY at its current share price and its 8.525%. NVDY is 8.479% and CONY is going to be 7.533%. I projected out the MSTY dividend return and it is still above 130% for the year. CONY projects out to over 100% and NVDY projects out to the 50-60% range. Just some data that I am crunching for my son and son-in-law…doc
So i checked the price of CONY from back when it became available and did the calculations for 100% annual return and this is the result. The investors who bought CONY 10 months ago will have a nice profit in 2 months if the 100% or higher dividend rate holds and as a side note the etf value is higher than when this etf opened. This is the power of compound interest…doc
Wow, what a great looking property. Love the wildlife especially the quail and turkey. Nice buck too. I saw a tractor trailer rig on the property too. Lucky you and well done…doc
Funny you should mention this. I had a delivery of stone (Actually a lot of deliveries) from down near Wichita. One driver mentioned that he didn’t know there was country like this in Kansas. Then he told me how he came up and asked if there was another route he could take out to see some more! So we hopped in my pickup and I took him to a couple roads going east to ensure he could make the corners. One was too tight, so I took him a mile farther north and that is how he went back south.
The white van was for building material and the blue CONEX was for a lot of our furniture, tools/supplies I needed and a lot of things I bought on sale like our oven, cooktop, all indoor and exterior lighting fixtures, all plumbing fixtures, etc. I tried to stack stuff into the CONEX in reverse order to needed time frame which “mostly” worked, but I did have to move some things a couple times before I had room for a walkway about 20 feet in.
The white van was to be for the ICF block and pieces. But the pallets of block (29 per) were too tall and ended up outside, next to the trailer. The corner blocks and other pieces were in the trailer. Actually, it may have helped that the blocks were outside.
On Dec 15, 2021 we had a derecho hit with 95 to 105 mph straight-line winds. It pushed the white trailer over against the pallets of blocks. 3 pallets of block had the banding break and the blocks were blown all across the pasture and some corners were broken on the surviving pallets. About $4,000 of ICF blocks were destroyed. We used some block where we needed partials.
Filled about 1/2 of a 25 yard dumpster with broken block. I worked on/off for about 5 days breaking-down the pieces in order to throw them away (eliminate airspace).
@physician - jumped into NVDY in March 2024 after we exchanged comments on it.
March 2024 was the start. Been building up the NVDY stake since then - in fairly inconsistent fashion e.g. added to the stake on either side of July 4th. Trading ex-div today, so today’s purchase won’t qualify for the July payout. Have told myself that NVDY gets a short leash. Have also set an income target for the 2nd half of 2024 - obviously, if I keep adding to NVDY the income expectation is going to shift.
