The word is spreading like wildfire. Some of YieldMax's exchange traded funds (ETFs) offer huge annual distribution yields, and legions of passive income investors are loading up on these intriguing funds. ...

Core Insights - YieldMax has attracted significant investor interest with distribution rates exceeding 51%, resulting in $22 billion in net inflows since 2022 [2] - Despite high distribution rates, investors in YieldMax ETFs have experienced an average loss of 11% per year since late 2022 when reinvesting 80% of distributions [3] - The COIN Option Income Strategy ETF (CONY) reported annual returns of 42% from August 2023 to April 2025, yet investors lost $35.5 million during this period due to poor timing in their investments [3] Distribution and Returns - YieldMax has made 23 distributions totaling $1.3 billion from inception through July 2025, with an average monthly distribution of 8% of the fund's assets [6] - Approximately 83% of the distributed amount was return of capital rather than income generated from investments [6] - The company's advertised distribution rates may be misleading as they include both income and return of capital, raising concerns about sustainability [5]

With the number of ETF strategies exploding, figuring out which ones are actually worthwhile is growing more complicated than ever. Exchange-traded funds brought in $540 billion in assets in the first half of the year alone, and the sheer number of ETF launches is overcrowding the markets, according to ETF.com president Dave Nadig. This time next year, the number of ETFs in the US could reach 9,000, given the current pace of launches. “That makes everybody’s job really miserable,” he said during a panel a ...

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