This YieldMax ETF is a Hidden Gem No One Talks About!

Summary

In this video, the speaker introduces a lesser-known ETF, PYPY, which uses a synthetic covered call strategy on PayPal stock. Despite being under the radar, this ETF offers impressive returns, including a high dividend yield and consistent payouts since its inception. The video walks through past performance, showing a recovery from an initial drop in price, and offers projections on how an investment in this ETF could grow over time. With detailed investment examples, the speaker highlights the potential for significant wealth accumulation, encouraging viewers to consider this underappreciated ETF for long-term investment strategies.

Takeaways

• 😀 ETFs are like high school popularity contests: the most popular ones aren't always the best investment choices.
• 😀 Lesser-known ETFs, such as the PYPL Option Income Strategy ETF, can provide higher returns than widely recognized ones.
• 😀 The PYPL ETF uses a synthetic covered call strategy on PayPal stock, which sets it apart from traditional ETFs.
• 😀 PYPL ETF has been paying consistent dividends since November 2023, with a recent payout of $1.62 per share.
• 😀 Reinvesting dividends from ETFs like PYPL can exponentially increase your returns over time.
• 😀 The PYPL ETF price has fluctuated, but it has shown resilience, recovering from dips like a $14 price point to $19.
• 😀 PYPL’s low expense ratio of 0.99% makes it a cost-effective option for investors compared to other ETFs.
• 😀 Based on a 44% average yield, a $50,000 investment in PYPL could grow to over $1.1 million in 10 years through reinvestment.
• 😀 Starting with smaller investments, such as $25,000 or $50,000, can lead to significant passive income generation over time.
• 😀 Many investors overlook smaller ETFs like PYPL, which can offer substantial growth due to less competition in the market.
• 😀 By diversifying your ETF portfolio and considering under-the-radar options, you can maximize long-term growth and income potential.

Q & A

What is the main idea behind comparing popular kids in high school to ETFs?

The script compares popular kids in high school to well-known ETFs, suggesting that the most popular ETFs aren’t always the best. Some lesser-known ETFs can offer better returns, much like how some underappreciated individuals in high school might excel in areas that aren't immediately obvious.

What is the PYPL ETF and why is it highlighted in the video?

The PYPL ETF is a fund that uses a synthetic covered call strategy on PayPal's stock. It is highlighted because, despite being less popular, it has shown solid returns and provides a unique investment opportunity compared to more mainstream ETFs.

How has the PYPL ETF performed since its inception?

Since its inception in September 2023, the PYPL ETF has performed well, returning nearly 30% in just 10 months. While its price fluctuated early on, it has shown a strong recovery, making it an appealing option for long-term investors.

What kind of returns can investors expect from the PYPL ETF?

Investors in the PYPL ETF have seen substantial returns. For example, those who invested early at $15 saw the price increase to $19.02, with dividends steadily paid out. The latest payout was $1.62 per share, which is the highest so far.

How does the PYPL ETF compare to other high-yield ETFs?

The PYPL ETF is competitive with other high-yield ETFs, such as those focused on Tesla, Alibaba, or MicroStrategy. While these larger ETFs are more well-known, the PYPL ETF has shown consistent payouts and strong growth potential, making it a strong alternative.

What is the importance of reinvesting dividends in ETFs like PYPL?

Reinvesting dividends is a crucial strategy for maximizing returns in ETFs like PYPL. By reinvesting the income, investors can benefit from compounding growth, which significantly boosts their portfolio value over time.

How much could someone potentially earn with an investment of $50,000 in the PYPL ETF?

An investment of $50,000 in the PYPL ETF could generate around $1,800 annually, assuming the dividends are reinvested. Over time, this strategy could lead to substantial growth as the value of the ETF increases.

What would be the projected income for someone investing $200,000 in the PYPL ETF?

An investment of $200,000 in the PYPL ETF could yield around $7,200 annually. This would provide a solid passive income, especially for those looking to retire or supplement their earnings with regular dividend payouts.

How can the PYPL ETF help someone retire comfortably?

With a strategic investment in the PYPL ETF, someone could potentially retire comfortably, especially in cities with a lower cost of living. For instance, a $200,000 investment could provide around $7,200 annually, which might be enough for retirement in affordable locations.

What are the projected returns for a $50,000 investment in the PYPL ETF over 10 years?

Over a 10-year period, a $50,000 investment in the PYPL ETF could grow to approximately $1,118,000, assuming dividends are reinvested and the yield remains relatively stable, even after accounting for inflation.