YMAX+YMAG TOTAL PERFORMANCE & POTENTIAL PROBLEM FOR YMAG

Summary

The video discusses the performance and portfolio considerations of the yield-focused ETFs, ymax and yeg, particularly emphasizing their recent shifts to weekly distributions. The speaker analyzes their top holdings, including the Magnificent 7 stocks, and reflects on past performance compared to major indices. They express a preference for ymax due to its diversified approach but acknowledge the challenges posed by certain underperforming assets. The discussion encourages viewer engagement by inviting opinions on these ETFs and comparisons with other funds, such as those from Roundhill and Defiance.

Takeaways

• 📈 YMAX is a diversified ETF focused on yield-maximizing strategies, paying weekly distributions that have attracted interest, especially among margin traders.
• 💵 The average distribution for YMAX has been around 20 cents, with recent distributions of 22, 22, and close to 21 cents.
• 🌟 YEG, another ETF, focuses specifically on the 'Magnificent 7' companies: Amazon, Apple, Meta, Google, Microsoft, Nvidia, and Tesla.
• 🚀 YMAX and YEG have seen increased popularity due to their weekly payment structure, leading to significant inflows.
• 📊 Performance comparisons indicate that while YMAX has faced challenges, it has managed a 21% return year-to-date, outperforming major indexes like the S&P 500 (up 24%).
• 📉 YAX, a different ETF, has struggled due to poor performance from underlying stocks, notably MNIE and AI YY, impacting its overall returns.
• 📅 The 'Magnificent 7' ETF has shown strong growth potential, with a 34% return if invested directly, compared to YMAX's performance.
• 📉 Investors should be cautious as past performance does not guarantee future results; YMAX’s current performance depends on the addition of new stocks.
• 🔍 One week may see weaker distributions for YEG due to the limited representation of Microsoft in its group, which is expected to affect overall returns.
• 🤔 The speaker suggests they prefer YEG over YMAX for future investments but remains open to re-evaluating based on market corrections.

Q & A

What is the main focus of the speaker's investment strategy?

The speaker primarily focuses on investing in Exchange-Traded Funds (ETFs) such as YMAX and YEG, particularly those that offer weekly distributions and are based on the Magnificent Seven tech stocks.

What are the 'Magnificent Seven' stocks mentioned in the transcript?

The Magnificent Seven stocks include Amazon, Apple, Meta (Facebook), Google, Microsoft, Nvidia, and Tesla.

Why does the speaker prefer YMAX over other funds?

The speaker prefers YMAX due to its diversification and the fact that it pays weekly distributions, which is attractive for margin trading.

How has YMAX performed compared to major stock indexes this year?

YMAX has seen a year-to-date increase of about 16%, which is lower than the S&P 500's 24% and the NASDAQ's 22% gains.

What factors contributed to the speaker's decision to divest from YAAX?

The speaker divested from YAAX due to underperformance issues, including significant drops in certain stocks within the fund, like MNIE, and their overall dissatisfaction with its performance.

What are the potential risks mentioned regarding YEG's distribution?

The speaker notes that during certain weeks, YEG's distribution could be weaker due to its reliance on Microsoft, which has a lower distribution yield compared to other stocks in the fund.

What is the significance of the weekly payout structure for these ETFs?

The weekly payout structure makes these ETFs more attractive to investors seeking regular income, potentially leading to increased inflows and popularity among traders.

How does the speaker view the role of options premiums in their investment strategy?

The speaker believes that options premiums can buffer downside risks, helping to mitigate losses during market downturns.

What does the speaker suggest regarding investing in YMAX again?

The speaker indicates they are open to re-investing in YMAX if there is a market correction, particularly if they can buy in at a lower price during a dip.

What are the speaker's thoughts on competing ETF options like Roundhill and Defiance?

The speaker prefers Roundhill ETFs over Defiance, believing that Defiance overpays and underperforms compared to Roundhill, though they invite feedback from viewers regarding their own preferences.