Exploring YieldMax ETFs for Generating Monthly Income from Options-based Strategies
For those looking to beef up their dividend income, particularly monthly dividends, this article will briefly overview the YieldMax ETFs which are relatively new to retail investors. These ETFs "seek to generate monthly income by pursuing options-based strategies on one or more underlying securities." Most retail investors avoid doing options on individual stocks as this is more complicated, risky and requires knowledge and experience in dealing with options. Most of the YieldMax ETFs have an expense ratio of 0.99% which may seem high to some, however, when considering that these are actively managed, options-based strategies, the expense ratio becomes more reasonable and realistic. Investing in the YieldMax ETFs involves a high degree of risk and the potential for loss of principle, so this is something to be aware of. The individual fund strategies will cap their potential gains if the asset or stock price increases in value. However, the ETFs are still ...