YIELDMAX NAV EROSION MYTHS DEBUNKED | $30,000 A MONTH IN DIVIDENDS WITH YIELDMAX & DEFIANCE ETFS

High-yield dividend Investing, Yieldmax, Defiance, Roundhill, CONY, AMZY, MRNY, FBY, PYPY, TSLY, OARK, APLY, NVDY, GOOY, NFLY, DISO, MSFO, XOMO, JPMO, AMDY, SQY, YMAX, YMAG, MSTY, ULTY, YBIT, CRSH, GDXY, QQQY, JEPY, IWMY, XDTE, QDTE, YBTC, YBIT, GDXY, CRSH, KLIP, SVOL
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[@SoCalStevo]

Help me earn my RobinHood credit card! Just sign up for Robinhood Gold (not the credit card) with my link, this is not sponsored: robinhood.com/creditcard?referral_code=50cf1830

[@larryharrison4408]

Hey I really liked your video, I've been slowly buying High Yield Yieldmax stocks each month and slowly growing my portfolio. I've been concerned about the NAV erosion, so this was just the clarity I needed, so Thank You Stevo. I also appreciate your no nonsense, no BS approach, it's just good info in a great presentation with no hype, keep up the good work!

[@mikelang7846]

Loved every second of the content finally someone who is saying what I’ve been thinking!!

[@SoCalStevo]

Thanks!

[@RecklessRayDinero]

I like this break down, most of the “dividend gurus” don’t seem to understand cash flow at all and end up erring more towards growth stocks with six figure portfolios that pay out $200/mo…. It’s sad.

[@danny1961florida]

cashisking,and cash flowisthe kingmaker !

[@LouisTheTraveler76]

Totally agree - Ferrari in 3rd gear.

[@SQExplores]

I have always been a cash flow investor, also in real estate. So if you have an asset that is paid off over a period of time and you keep getting "rent payments (= dividend distributions) every month, if you don't sell the property you should be fine, as long as the monthly rental income doesn't get decimated. A growing share count based on share compounding should help with that. I am just wondering what happens if a Yieldmax fund (e.g CONY, MSTY, NVDY) turns into a TSLY with a negative total return and a reverse stock split. At what point do you get out of that ETF and into a better one?

[@RecklessRayDinero]

@@SQExplores CONY/MSTY I don’t worry about, they should be in the clear for the next 14 to 18 months, they’re tied to Bitcoin and this is its cycle. I manage my accounts actively so I’m tapping in regularly and making the necessary adjustments to keep the cash flow efficient. I’m cherry picking plays that fit my personal thesis not just chasing dividends

[@LouisTheTraveler76]

Good video - I've made several of your arguments to the total return "fear mongers." You can't spend paper wins, and paper losses can be recovered. The additional point I add is with margin. Even with the depreciating YM and Def funds, if you don't immediately DRIP and allow the massive dividend to pay the margin, your account rises by that margin as you gain more and more ownership of the stock and margin declines. The decline in margin will keep your account robust, despite paper losses and why the risk/reward is so favorable.

[@theav.1313]

Finally! Someone who can eloquently explain! Other channels just sound scammy and not convincing at all! 😂thank you!

[@SoCalStevo]

Thank you!

[@DP52001]

Glad to see a new creator giving such solid, pragmatic, objective input to investors. Keep up the great work and thank you!

[@SoCalStevo]

Much appreciated!

[@kencorleone617]

Indeed!

[@strangerintown3676]

Took positions in QQQY, AMZY, & CONY today. I plan to DRIP them for a couple years then take no more than 50% of the distribution & reinvest the other 50% back into the funds. I will also buy shares on big selloffs.

[@ifern4545]

Great explanation, thanks. I personally own : MSTY, CONY, NVDY, MRNY, MSFO, NFLY, AMZY, YBIT, IWM. Own QQQY and JEPY in the past, got out in green(with the divs). Getting ready to live of dividends when retire in 28 months. So far my average divs are +22K a month, stopped reinvesting since that number will be more than enough.

[@SoCalStevo]

Good stuff!

[@leyba_leyba]

Wow that’s awesome man! Do you mind sharing about how much estimated you have invested to get a return like that ?

[@pixelhidef]

@@leyba_leyba In this type of world, you're looking at roughly .03 to .07 depending on allocation. So 22k would be anywhere from $315k to $733k.

[@TChalla007]

I had to sell off TSLY, because it was too unstable when using margin. Had a few margin calls. I was heavily into TSLY when they weren't other ETFs available. Now I'm more diverse and stable. I have FBY, ULTY, AIYY, AMZY, YMAX, NFLY, CONY, NVDY, MRNY, MSTY. Great Job. Just subbed.

[@SoCalStevo]

Great diversification!

[@tuatara80]

Thanks for this wisdom, Sir. Me i have yieldmax etfs but I don't try to convince others to buy. Let those who have yieldmax enjoy the yields. The great majority are better off with their security, peace of mind, and I-must-be-right worldview. I'd rather not disturb that and leave them in glorious peace.

[@disco4535]

So refreshing to hear someone that understands the details and nuance of these funds

[@SoCalStevo]

Thanks!

[@billhaskins38]

Absolutely PHENOMENAL channel. I absolutely love the incredible information you are sharing. Please keep them coming!!

[@SoCalStevo]

Thanks, I will!

[@_Oilspill_]

great content Steve. one question i have though is what about nav erosion over time. doesn't that bring the overall dividend you receive over time down, thus creating a spiral you can't get out of?

[@SoCalStevo]

We'll have to see, only time will tell. I'm optimistic though

[@AE-sy1pn]

Yes, but he doesn't want to contradict himself.

[@NickkkOnTube]

The Problem is not (only) the NAV decay, but (also) the decay of the dividend amount, corresponding to NAV decay!

[@SoCalStevo]

We'll have to see if the dividends decay to nothing or hold up to a certain degree, only time will tell.

[@TChalla007]

I think more and more new investors are starting to find out about these ETFs.

[@pixelhidef]

Decaying dividend is generally corelated to the performance of the stock during the period. You can chart the dividends against the stock price and you'll see what I'm stating. I'm basically reinvesting until I'm ITM on a position, and then I turn off the DRIP and invest in other plays within the same basket. And since I'm an early adopter, long term holder, I typically buy stocks that have a deep discount, like AIYY. You can buy double the shares and eventually price will recover, that position will increase in dividend per share as well, and you'll get a great return somewhere down the road. The other option is to keep track of the Average dividend across each ticker and sort them accordingly. I will usually use new funds to buy the cheapest of the top three performers at the time, as a steady compromise of performance and share qty. Honestly, you really can't go wrong where you put your money if you plan to never sell. Every stocks goes through ups and downs, and every dividend will be follow. Look at TSLY... You should be buying the hell out of it at these prices. It will recover and you'll see $2/share again in no time.

[@Luigi-the-cat]

oh no nav erosion ooooh I prefer coca cola and a good butplug

[@Kk-iw4ck]

Great video thank you !!

[@SoCalStevo]

Welcome!

[@paullemko9494]

Good morning. Grats on the sub growth!

[@SoCalStevo]

GM, and thanks bro!

[@ilkerbetoner]

Great video, just wanted to add; even if you're someone who is not planning to sell in the future and just want the monthly income, in case the Nav declines hardly the yield percentage stays the same however, your payout gets skinnier. And then you end up making less and less every month, as the Nav keeps dropping-even though the yield still stays the same,. Do you agree?

[@SoCalStevo]

Only time will tell how well the distributions hold up. I personally do not thing they'll dwindle to nothing, though, but we'll see.

[@ilkerbetoner]

@@SoCalStevo didn't want to mean "nothing", for sure the dividents will be at a certain rate but just may become lower IF the Nav keeps dropping imo. but yes, we'll see.. one thing caught my attention from one of Khmer (I watch his all videos) he had an excel file to calculate ROI (someone made for him), it was not factoring the fact that on ex-date it drops the same amount it pays. so you simply need the Nav to gain value to come back. I think it was "how to make a million $" video.his was just accumulating all div on top of the asset like on ex-date it never drops😊

[@rogersol.youtube]

I’m new to this world but I think that’s why some high yield dividend investors recommend reinvesting a portion of the distributions. That seems pretty realistic considering how high the yield is for some of these ETFs

[@faridsaeedi585]

How do you know how long they last? Isn't it risky to hold these sorts of ETFs in RRSP/TFSA accounts? Will they last forever? What if their underlying assets crash?

[@SoCalStevo]

If the underlying tickers crash, then the yieldmax will crash too. So only invest in funds you believe in. For example, I don't think Microsoft is going anywhere anytime soon, same with Apple. As far as how long I want need YM funds to pay, as long as they pay long enough I can get 100% return on investment then I haven't lost anything by giving them a try.

[@nyacoustics8373]

this is a good video on this topic explained very clearly. How do you actually "live off" these funds like YMAX, CONY ULTY etc. Say for instance your mortgage is 3k a month and your dividend portfolio is making 6k per month. Do the dividends earned from your portfolio of 5 funds go into a separate fund each month that you can easily access to pay your bills. OR do you have to sell your shares of YMAX to get money for your bills. I would imagine you would keep depleting your base of shares you own if that's the case and the wouldn't generate so much on a monthly basis. Its an interesting topic i think for many viewers on how you actually "live off" your portfolio.

[@SoCalStevo]

You don't have to ever sell your shares. Just keep them, they generate income for you.

[@certifiedfinest5065]

@@SoCalStevohow about the process of withdrawing them into another account to be spent?

[@georob7918]

I can’t see retiring with a mortgage.

[@SomeUserNameBlahBlah]

Use the dividends to pay your mortgage, this way you don't need to sell shares. Some brokerages won't auto-DRIP your dividend, you have to manually do it.

[@nyacoustics8373]

@@SomeUserNameBlahBlah what does auto drip dividend mean? and lets say your brokerage firm does auto drip and your making 6k a month do the auto dripped dividends wind up in a separate account t pull from for expenses?

[@thehoopscoop]

Nice video and I love the logic and break down on this FUD. I watched your other video and I am in the same place where I want to document my journey but my wife is against me sharing publicly.

[@SoCalStevo]

You understand then, brother :\

[@ChuckDavis360]

​😊👌

[@ChuckDavis360]

I got into TSLY when it hit bottom and had the reverse stock split. I buy every week. Little over 650 shrs now. I have about 350 in profit..

[@bankashvids]

Thanks Stevo! Great content!

[@dougcarnall]

New Subscriber Great video Best on luck on continued growth

[@SoCalStevo]

Thank you! You too!

[@nssapal8640]

A great video with in-depth analysis - thank you

[@SoCalStevo]

Glad it was helpful!

[@dpragain]

It depends on if you’re in a taxable account or not. You don’t want to be paying taxes on Nav erosion

[@lucindakloman7311]

Here is the problem for me. A lot of these funds are very new, so performance is hard to gauge. QQQY is a great example. Per your video, down 24%. Still holding steady on the dividend. If it continues to pay this dividend or something close to it for the next 5 years or more, that would be great, but if it stops trading in the next couple of years because the NAV goes to or near zero, then you've only broken even or perhaps lost a little of your initial investment AND paid taxes on what ends up being just your return of capital.

[@skynet251]

Its a plus when they go down love it because it just means i can buy more at a discount

[@GentleBrawl]

Solid and straightforward advice!

[@robertsmith6408]

Yup, people cant see this. Your divs will eventually pay for the NAV erosion and the capitol over approx 12-18 months. Lets say you decide to keep it five years, man think of the divs you got paid, so for me in 5 years without adding funds i will get 325,000 div and pay the nav back whatever it is at the time. On top of that will you exit you will also get whats left of your capitol and no way will Yieldmax let these go to zero. Its a win and a win.

[@mikewu9483]

in 5 yrs, shares will be $1 , div. will be pennies

[@robertsmith6408]

@@mikewu9483 no, its got to do with the underlying which is the Nas or the Russell 2000 index. I guess if those failed that would be a big problem, but they wont fail and i will keep getting these life changing divs for decades!

[@ULTIMATEhouseTV]

Cool, calm, collected. Providing so much value on high yield!

[@SoCalStevo]

Thanks!

[@scott_glasgow]

Indeed! Hold on, then the dividend return will someday surpass the initial price to get in..... unless it drops to $0 which has happened to many stocks. Who knows the real life span of the YieldMax and Defiance. We will know in 10yrs whether this was a fad or a thing that is for the long hold.

[@SoCalStevo]

True, no one knows what's going to happen tomorrow, but any stock can go to zero, microsoft, nvidia, apple, etc.

[@mikep4869]

I measure the return as 'Yield on Cost'. The distribution may change each month, but I compare it to what my cost was. Then look at the total return. If that beats the total return on VOO, then stay put.

[@bernardclements]

Excellent video and content 👏👏👏

[@samanthareardon3330]

Hi, I have a question, I sorry it's a little late, but I just found you. First of all, thank you for explaining this, most info out there is hard to find or people just say "don't" without any extra info. I was looking into IWMY, it seems to be going down +/-$1 every month, will it get down to zero eventually and go away, or maybe even out before then? I'd like to keep for a long time and have that high div.

[@SoCalStevo]

Hi there Samantha! As far as IWMY, past performance doesn't guarantee future performance. So we don't know if it'll dwindle to nothing (reverse splitting in the process), or bottom out at some point. I do believe it'll bottom out at some point, but we'll have to wait and see.

[@samanthareardon3330]

@@SoCalStevo Thank you! This video helped me understand things a lot better😊 It makes it a bit more difficult when you're working in hundreds of free dollars and not thousands, but it's nice watching it go up every month. I did some calculations, if it keeps to it's current trend I'll at least break even plus a little bit with what I have planned to invest. Hopefully it'll last a lot longer than that!

[@MLMcCallum]

If your NAV drops 40% and the DIv is 20%, your dividends are going to drop in total payout.

[@SoCalStevo]

Of course that's why you look at total return

[@porstst]

I am in my 60’s ! I need my 💵 now 🤷🏽‍♂️😎

[@juanitareyes4092]

If u don’t mind me asking what are ur holdings

[@SoCalStevo]

Unfortunately I can't be specific, my wife is very uncomfortable with me sharing my whole portfolio online, but I'll try to share what I can in the future

[@brandonfrancisco9983]

You can’t say CONY, QQQY, NVDY? Telling us the ticker is not going to affect your portfolio.

[@DividendGrower]

@@brandonfrancisco9983 I would be more uncomfortable showing my "30k" dividends per month than saying the 10 or so companies I hold

[@willowandluka5302]

Not sure if you mentioned in your last video, are you re-investing all your dividends or are you using part of it as income?

[@SoCalStevo]

purely reinvesting at this point

[@edbrandt8972]

What would happen to your dividends if the Yield Max ETFS did a reverse stock split? Would the dividend distribution stay about the same but you would have fewer shares? I want to explore that possiblity.

[@SoCalStevo]

Technically speaking, forward splits do not cause your dividends to increase, and reverse splits to not cause your dividends to shrink. Most companies reverse split to make sure the stock exchange doesn't de-list the stock if the price falls too low.

[@edbrandt8972]

@@SoCalStevo I am seeing risk in the dividends going forward as the NAV erodes. The dividends may increase over time as NAV erodes, but the announced div yield may still be shown as about the same since it is calculated on the most recent dividendx12 divided by CURRENT NAV. So I want to observe the dividends over time as NAV goes down.

[@paulkeinrath6235]

Ymax is only up 1% because its still relatively new

[@user-vg3nq6hn8l]

As a beginner in high yield dividends is Ymax a good start? I’ve just thrown 5k USD in it

[@SoCalStevo]

I like YMAX a lot! Good diversified choice

[@snprmilitary]

Keep the videos coming

[@steveb.7120]

The problem is like in the case of TSLY they start reverse splitting and yes they can go to absolute zero after a few years. I was heavily into TSLY and got burned but interestingly overall with CONY and a few others it did balance out. I would say I'm still cautiously optimistic about the covered call etfs. I have also started to invest and sell options on my own holdings with some pretty good success. BE CAREFUL.

[@SoCalStevo]

TSLY was unfortunately the worst case, but it's not TSLY's fault, it's TSLA's fault. Choose your underlying carefully is good advice for anyone.

[@xterra4hire]

going back up now for the people that held on

[@BioHorror]

Well, I started with 200 shares of TSLY, now I have 100. So if we go with reality vs opinions, I have half of what I did have because of what? NAV erosion. It's real and it's not fun.

[@SoCalStevo]

Just hold it until the dividends pay off the cost basis.

[@363361329]

U lost shares because the reverse split? Do u also lose half of the dividend?

[@awrooterman1070]

Ymax is a maybe let’s see how nav does the rest our garbage!

[@spicytuna08]

thanks great insights!!!

[@SoCalStevo]

Glad it was helpful!

[@pixelhidef]

From day trader waking up on pacific coastline at 5:15 to start my day to now sleeping until whenever I want. Income investing is the only way you eliminate the losses, perpetually increase your share size when DRIPing, and see your monthly income go up nearly every single month. It's better than real estate, it's better than day trading, it's the best way so far I've found to retire early! Thanks for sharing the good news, Stevo

[@SoCalStevo]

Welcome!

[@Mr.Magic_O]

Not sure why anyone would focus only on NAV independent of dividend yield or for that matter, dividend yield independent of NAV. The only metric that makes sense gor an investor is Total Return. Period!

[@SoCalStevo]

False. I'm going to do a video on how total return is not a good metric for high yield income investing.

[@Mr.Magic_O]

@@SoCalStevo I’m doubtful there’s a better metric but will withhold judgement until I review your evidence and arguments. I look forward to hearing your perspective. 👍

[@Mr.Magic_O]

@@SoCalStevo I haven't seen your video on this topic. When do you expect to release it?

[@SoCalStevo]

@@Mr.Magic_O kzbin.info/www/bejne/onfGn3RmrMSgq7M

[@matthewfoisy8087]

Very good info.

[@SoCalStevo]

Glad it was helpful!

[@Brendtzone]

Dollar cost averaging should help?

[@SoCalStevo]

It would help.

[@bethhynes787]

How is the yield calculated? It seems the decline in the NAV means a decline in the amount you receive in yield- this happens because the payout is a function of the NAV….

[@SoCalStevo]

The yield is a snapshot in time, in the future it could go up or go down, depending on the distribution and the NAV.

[@geauxlsu1180]

Enjoyed your content and input . The reverse split on TSLY was a big concern for NAV as it cuts your share number in half, then you only get half the dividend $ paid. TSLY is the only one to have done the reverse split in yieldmax due to the rapid fall in TSLA stock price. Therefore I am not heavy into Individual stocks more YMAX for me.

[@SoCalStevo]

Yields always vary, but spilts and reverse splits are not supposed to change your distribution amounts or your porfolio value, they're cosmetic.

[@SQExplores]

@@SoCalStevo From what I understand, the distribution amounts are based on the value of the underlying because the option premiums are based on the synthetic long position of TSLY. Higher stock value results in higher option premiums. If I understand that correctly, it doesn't directly affect your portfolio value (share count times share price), but the price of ETF and the price of the underlying TSLA affect the distribution amount for TSLY. Please comment, in case I am wrong of that.

[@tprincipato]

The yield is based on the price of the stock. You absolutely care if the stock price goes down. That said if you believe in the underlying position, for example Nvda then you can use nvdy as an income tool. I am in nvdy aply amzy msty and tsly. You can see when the underlying tanks it hurts the yield. I plan to continue to invest. I really liked the video but wish you didn’t talk in absolutes like you don’t care about nav.

[@SoCalStevo]

Sorry you feel that way. I care about the NAV for stocks I plan to sell. For my NVDA stock you can be sure I cared about the NAV, because I planned to sell it. But what's the point about caring about the NAV's ups and downs on funds I never plan to sell? High yield dividend stocks are different. You don't sell, you hold, because those funds pay you to hold them.

[@tprincipato]

@@SoCalStevo I understand how you differentiate. I agree on most of what you said. I worry my qyld and qqqy for example will continue to deteriorate. When I add these type of positions I worry they will erode away. Enjoyed the video. I subscribed. I am wondering if you are in Svol or have created content. It’s one of my top 3.

[@SoCalStevo]

SVOL is an excellent fund, I've had it for a while.

[@ShonryuB]

If the stock price deteriorates over time so does the dividend pay. How do you equate for that? By reinvesting back into it to hedge up losses?

[@kevincox6311]

Well I’m still 2k down in Tesla Shit happens

[@jimmyb6842]

Wow… i have most of the green list😂

[@Chris-ew9mh]

Only MSTY and NVDY are green now, but hopefully the total returns are still decent once dividends are considered. 😁

[@yesidrive]

1 rs bad 2 rs your money gone

[@SoCalStevo]

Stocks, real estate, everthing does poorly in a recession.

[@user-wt4kw4cj9w]

There are interviews with the fund managers at Yieldmax on record talking about the NAV erosion in their ETFs... I have no clue how you can sit there for 12 minutes and think it's a 'myth'. Wealth Adventures also interviewed the Defiance CEO Sylvia Jablonski and they talked about NAV erosion. kzbin.info/www/bejne/gV7alIOZe9iEo9U

[@SoCalStevo]

Jay has said there's not NAV erosion in all their funds, I guess you missed that interview. And you can look up the stock charts themselves in a few seconds.

[@mikewu9483]

sure there is erosion on every ex-div. . Some funds are up simply means more buyer than seller on some ETF