Maximize Your Income Yield With These Magnificent ETFs

Like
Comment
Favorite

Maximize Your Income Yield With These Magnificent ETFs

seekingalpha05-18

Tesla and Apple have delivered negative YTD total returns in 2024, despite being part of the "Magnificent 7 Stocks" in 2023.Other growth stocks fueled by the AI revolution, such as AMD, Oracle, and ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

No comments yet

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2436888951?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/908178812/image_908178812.jpg","is_english":true,"pubTime":"2024-05-18 20:27","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2436888951","market":"nz","top_or_hot":-1,"title":"Maximize Your Income Yield With These Magnificent ETFs","media":"seekingalpha","content":"<div>\n<p>Tesla and Apple have delivered negative YTD total returns in 2024, despite being part of the \"Magnificent 7 Stocks\" in 2023.Other growth stocks fueled by the AI revolution, such as AMD, Oracle, and ...</p>\n\n<a href=\"https://seekingalpha.com/article/4694296-maximize-your-income-yield-magnificent-etfs\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Maximize Your Income Yield With These Magnificent ETFs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMaximize Your Income Yield With These Magnificent ETFs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-18 20:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4694296-maximize-your-income-yield-magnificent-etfs><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla and Apple have delivered negative YTD total returns in 2024, despite being part of the \"Magnificent 7 Stocks\" in 2023.Other growth stocks fueled by the AI revolution, such as AMD, Oracle, and ...</p>\n\n<a href=\"https://seekingalpha.com/article/4694296-maximize-your-income-yield-magnificent-etfs\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0348723411.USD","symbol_name":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","start_time":0,"source_url":"https://seekingalpha.com/article/4694296-maximize-your-income-yield-magnificent-etfs","article_id":"2436888951","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/908178812/image_908178812.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2436888951","pubTimestamp":1716035240,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Tesla and Apple have delivered negative YTD total returns in 2024, despite being part of the \"Magnificent 7 Stocks\" in 2023.Other growth stocks fueled by the AI revolution, such as AMD, Oracle, and Ad","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","00201":"华大酒店","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","MSFO":"YIELDMAX MSFT OPTION INCOME STRATEGY ETF","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","AAPL":"苹果","LU0823411888.USD":"法巴消费创新基金 Cap","LU0072462426.USD":"贝莱德全球配置 A2","AMZN":"亚马逊","NVDY":"YIELDMAX NVDA OPTION INCOME STRATEGY ETF","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","MSFT":"微软","FDN":"First Trust Dow Jones Internet I","AMD":"美国超微公司","GOOG":"谷歌","GOOGL":"谷歌A","META":"Meta Platforms","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","CONY":"YIELDMAX COIN OPTION INCOME STRATEGY ETF","LU0878866978.SGD":"First Eagle Amundi International AHS-QD SGD-H","ADBE":"Adobe","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","ORCL":"甲骨文","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","NVDA":"英伟达","LU0708995401.HKD":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","COIN":"Coinbase Global, Inc.","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD"},"translate_title":"用这些出色的ETF最大化你的收入收益","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AAPL":1,"NVDY":1,"NVDA":1,"MSFT":1,"MSFO":1,"META":1,"ORCL":1,"US10Y.BOND":1,"US12M.BOND":1,"US2Y.BOND":1,"US30Y.BOND":1,"US3Y.BOND":1,"US5Y.BOND":1,"US6M.BOND":1,"US7Y.BOND":1,"00201":1,"GOOGL":1,"GOOG":1,"CONY":1,"COIN":1,"AMZN":1,"AMD":1,"ADBE":1,"FDN":0.9,"US912797FS14.BOND":0.6,"US912797FH58.BOND":0.6,"US912797GB79.BOND":0.6,"US912797GK78.BOND":0.6,"US912797GL51.BOND":0.6,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"Tesla and Apple have delivered negative YTD total returns in 2024, despite being part of the \"Magnificent 7 Stocks\" in 2023.Other growth stocks fueled by the AI revolution, such as AMD, Oracle, and Adobe, are expected to see strong outperformance in 2024.Income investors can take advantage of high-yielding income streams from covered call options on stocks like Microsoft and Nvidia through YieldMax ETFs.   Matteo Colombo/DigitalVision via Getty Images You may have heard of the “Magnificent 7 Stocks” that includes Apple (AAPL), Microsoft (MSFT), Google parent Alphabet (GOOG) (GOOGL), Amazon (AMZN), Nvidia (NVDA), Meta Platforms (META) and Tesla (TSLA). They are called that because of their incredible outperformance in 2023, however, not all of them are still magnificent in 2024. In fact, both Tesla and Apple have delivered negative YTD total returns as of May 10, 2024 as shown in this IBD research update on the Mag 7 stocks.   IBD Other top growth stocks are being fueled by the AI revolution and are seeing turbocharged returns that are not in the top 7 but should also see strong outperformance in 2024. For example, AMD (AMD), Oracle (ORCL), and Adobe (ADBE) are included in addition to Mag 7 stocks GOOG and META in a recent list from Goldman Sachs who see a rising mention of AI in earnings calls.  According to the investment bank, 41% of the S&P 500 listed stocks have mentioned the idea of artificial intelligence on Q1 2024 earnings calls, which is up from 23% just a year ago. “The AI trade has begun to broaden,” Goldman Sachs noted. “Alongside a broadening out of the AI trade, nearly 70% of S&P 500 Energy companies have mentioned AI on earnings calls vs. 19% last quarter.”  Leveraging the Mag 7 and AI Growth Stocks for Income As an income investor, I am interested in the AI growth story that propels these stocks, but I am not interested in directly investing in them. One option for income investors like me is to take advantage of the ETF offerings from YieldMax. With the YieldMax funds it is possible to collect a very high yielding income stream from the covered call options that the funds utilize on the underlying stock (reference asset) to generate income. I am only showing the first 8 of the YieldMax ETFs in the screenshots below. The rest can be viewed on the website.   YieldMax  YieldMax MSFO For example, YieldMax MSFT Option Income Strategy ETF (MSFO) currently yields over 31% on a forward basis assuming each monthly distribution will be the same as the most recent, which is not how it works because the dividend varies each month depending on how much income was generated from options premiums. Nonetheless, you can get a general idea of the current yield available from the investment. From the fund’s website, the Fund Overview is shown below: The YieldMax™ MSFT Option Income Strategy ETF (MSFO) is an actively managed fund that seeks to generate monthly income by selling/writing call options on MSFT. MSFO pursues a strategy that aims to harvest compelling yields, while retaining capped participation in the price gains of MSFT.   YieldMax Most likely, the forward yield on MSFO will be even higher than 31% given the recent dividend payout history as shown on the fund website. The latest distribution amount of $0.5725 is the lowest amount paid since January of this year due to poor MSFT stock price action in April.   YieldMax As implied by the fund overview, the MSFO investment objective is to seek current income and it gives up some upside potential price gains as a result. The Fund’s primary investment objective is to seek current income. The Fund’s secondary investment objective is to seek exposure to the share price of the common stock of Microsoft Corporation (“MSFT”), subject to a limit on potential investment gains. This is why if you want growth in your portfolio you may want to buy MSFT stock, but if you want income from the Microsoft growth story that is being partially propelled by AI, you can achieve a high yield income stream from investing in MSFO, and potentially get some capital gains too. What is the Historical Return for MSFO? Using the SA charting tool, I decided to review the total return for MSFO over the past year, however, MSFO is less than a year old, so its performance is since fund inception of August 24, 2023. As you can see, MSFT has slightly outperformed MSFO, however, the ETF has beaten the S&P 500 since inception.   Seeking Alpha According to the fund website, performance since inception as of 4/30/24 was 24.5% at NAV.   MSFO Performance (YieldMax) The fund expense is about 1%, on the high side for an ETF but the generous income yield compensates for the expense. The fund prospectus further explains how options income is generated from covered calls. The Fund is an actively managed exchange-traded fund (“ETF”) that seeks current income while providing indirect exposure to the share price of the common stock of Microsoft Corporation (“MSFT”), subject to a limit on potential investment gains. The Fund will employ its investment strategy as it relates to MSFT regardless of whether there are periods of adverse market, economic, or other conditions and will not seek temporary defensive positions during such periods. As further described below, the Fund uses a synthetic covered call strategy to provide income and indirect exposure to the share price returns of MSFT, subject to a limit on potential investment gains as a result of the nature of the options strategy it employs. More precisely, the Fund aims to generate additional income from its options investments when MSFT rises in value. It is important to understand that if you are willing to accept that MSFT stock will most likely continue to go up in value, then MSFO may be an investment for you to consider as a way to “juice” your monthly income. If you are not convinced in the Microsoft growth story, then you may want to avoid this ETF. NVDY Another ETF that YieldMax offers uses Nvidia (NVDA) for its “reference asset” to sell covered calls against. The YieldMax NVDA Option Income Strategy ETF (NVDY) has offered even better performance than MSFO since its inception, and currently offers a 54% forward yield based on its most recent dividend. NVDY started a little sooner than MSFO in May 2023, but is only just a year old now. The total return since inception is over 100% as shown on this snippet from the website.   NVDY Performance (YieldMax) The dividend history for NVDY is also quite impressive with $13.1955 paid out in the last 12 months.   YieldMax The share price at inception for each of the funds is typically $20 so any price over $20 is capital gains that are in addition to the income. NVDY currently trades at $26.68 and is up nearly 20% YTD on price alone.   Seeking Alpha Of course, if growth in share price is what you are after, you are much better off buying NVDA directly. But if you are an income investor and believe like I do that the NVDA growth story is far from over and the stock price will continue to increase over time, I suggest you consider buying some NVDY shares. The timing of purchases can be important as the price of the ETF rises as it gets closer to the end of the month with the ex-div date occurring in the first week of the month. Then on ex-div date the fund price typically drops by at least as much as the distribution amount and often by much more. The dividend ex-date, record date, and payout dates are all shown on the website. The next ex-div date coming up is June 6, 2024.   YieldMax CONY – Beware Sudden Shocks Each of the YieldMax ETFs is totally dependent on the “reference asset” and in the case of some, like CONY, the underlying stock, Coinbase (COIN) can take a sudden hit based on unexpected news. The YieldMax COIN Option Income Strategy ETF (CONY) offers one of the highest yields currently available from any of the ETFs offered at 124% as of 5/16/24. As the news unfolded today that CME group is considering starting up a competing cryptocurrency transaction platform, the COIN stock dropped by over 9% in afternoon trading.   Seeking Alpha The stock price of CONY, which does not own any stock outright, also dropped a lot today in sympathy, which may have offered a buying opportunity for income investors. CONY closed at $20.79 (about a -5% drop). At the end of March, the CONY price peaked at $30. The dividend yield is very tempting, as long as COIN can recover and start rising in price again.  That is the risk that investors need to weigh when buying into one of the YieldMax funds. The TSLY fund suffered a similar drastic drop in price due to the torrid performance of Tesla stock in the past year. If you wish to own any of these funds, you need to be aware of the risk of capital losses from sudden price drops that do not recover enough to justify the generous distribution. Then again, if you never take a risk, you will never reap the rewards.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}