ULTY attracted investors with exceptionally large weekly distributions, producing cumulative payouts far exceeding the initial share price. The ETF launched at $20 in February 2024 and has delivered very high cumulative distributions while its market price declined sharply to roughly $5.75–$6.00. YieldMax specializes in covered-call and synthetic option strategies that can generate outsized yield but expose capital to erosion. Some investors and analysts remain optimistic about a recovery, with price targets as high as $18 and a more modest, feasible near-term upside to about $7 supported by specific structural factors.
Few Exchange Traded Funds have generated as much controversy in recent memory as the YieldMax Ultra Option Income Strategy ETF (NYSEARCA: ULTY). It has captivated the enthusiasm of many dividend seeking investors with its high weekly dividends, despite a fairly high risk of capital erosion. Launching in February 2024 at $20, ULTY has paid 126% in cumulative distributions and is presently at 86-88%.
However, the market price has steadily fallen to the $5.75-$6.00 range at the time of this writing. The diehards are unperturbed, even though analysts have cut their ratings on ULTY. However, while the long term view is very much a coin toss as to whether or not ULTY can sustain itself, the shorter term prognosis is that the stock price will rise, and there are sensible and convincing underpinnings for that stance.
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