Transcription
Of course, this is not financial advice and for entertainment purposes only. Investors, welcome back. We have a very special video and a very special guest. But first of all, we're going to be doing $100,000 into Ulti versus $100,000 into YAX. I'm joined with Mr. Todd Aken from Unconventional Wealth Ideas to bring some expertise and knowledge because he does have, I believe, over $1.5 million in his portfolio and he's generating over $700,000 per year in income from some of his top YMX ETFs and so much more. So Todd, welcome back. And how are you feeling being back on the channel?
>> Yeah, thanks again for having me, Marcos. Love being here. Love these videos that we do. I love how you break out the information on the slides and I apply what I do in the real world and together I think it makes for great content, man.
Now, our first ETF we're going to be going over is YAX. So, we're going to go over the pros and the cons and then move on to Ulti. So the pros of YAX is of course that weekly income versus every four weeks from YieldMax. You have diversification to 32 of the best or should I say the only YieldMax single stock bullish ETFs by YieldMax. This is a fund of funds. So you hold all the single stock YieldMax names that are bullish and not the inverses. The cool thing about YieldMax, or should I say YAX, is that it is equally weighted to all of your YieldMax ETFs in their arsenal. So, you're not overweighted on one or two. It's all equally weighted, which is pretty cool from a diversification standpoint. Super high yield, 65 to 70%. So, it's going to be a higher yielder, but not higher than Ulti. We'll get to that in a minute. Less risk though than Misti, then Coney, then Pelty, then Hoie because you have diversification to so many YieldMax ETFs as the underlying. And yes, a higher beta and IV than most cover call ETFs, which is great because YAX has beaten NEOs, SPY, and QQQI, as well as so many other cover call ETFs because of the high beta and high IV, which means more income and outperformance potentially in a bull market.
Now, I said so much, Todd. What are your thoughts on the pros of YAX?
>> Yeah, I mean, the pros of YAX are kind of hard to argue because you're getting a combination of those YieldMax funds together. So, you don't have the single headline risk in one name. They have high IV. You're going to get that high distribution as a result. You're also going to get some capital gains on a daily basis. Maybe not on a total yearly basis because there will be erosion from the dividends, but you get those daily gains which when you're using a little bit of margin even, then you're getting the gains to not only give you more performance, but you're getting extra income off the margin, which is paying down your margin faster, increasing your performance even faster.
Now, do you hold Wemax? I know you own so many YieldsMax ETFs and even you love Cornerstone and all your other funds in your portfolio.
>> Yeah, I definitely own YAX. We own YAX. We own some Ulti. The question is which one do we take up more? And we just did a video on that. And also, when you're using margin, you have to spread things equally between some of those funds that you just mentioned. And when we're trying to live the fire lifestyle, which means financially independent, retire early. We want to be sure that not one fund takes us down, not even YAX, it is diversified, so it shields you from that unwanted volatility, but you still don't want one fund to have a maximum draw down. You know, in a in a down market when you have a 2 or 3% down day, something like a YAX or alti can fall a little bit bigger. So, in order to live free and maintain our financial freedom, we have to stay diversified and we have to watch our position sizes and something like a YAX. I love what you said about, you know, downside potential. It this is still high risk. It's going to be less than single names like Misti, then Coney, Pelty, Hoie, etc. Because you have, like I said, diversification to all the yield max bullish underlying single stocks. It's going to be more risk though than, you know, Spy by Neos, QQQI by Neos, even JetBq. Long story short, higher betas and a higher IV can mean more risk than other funds. But that's okay if you have a higher risk tolerance and maybe if you want more income potential. It can though underperform certain tickers by YieldMax like uh Hoie for example, like Pelty because of that equally weighted nature. For example, let's say that HOIE, I think you've seen Tata, Hoie has been outperforming super well against YAX. It's going to outperform YAX because you have a single ticker versus YAX equally weights all the positions. So, you're not going to get the most exposure to the upside, for example, with HOIE or Pelty, but you could get some upside potential.
Now, Todd, what are your thoughts on, you know, the underperformance potential of YAX versus a single ticker like a Pelty or like a Hoie?
>> Yeah, great question, Marcos. Yeah, I think that you want to get the maximum growth that you can out of yield max and so you buy YAX, but when you want a little bit more exposure to those growth themes within and if you want a little bit more performance in your account, you can take the names within YAX and kind of overweight them in your portfolio or at least spread them out throughout your portfolio. Something like a hoie we keep at a lower waiting obviously than something like an Apple an appleley because Apple is 10% or so of the indexes. Robin Hood is not even in the indexes. It depends on which index you're looking at of course but it's not in the S&P for example. But it's had great growth. You don't want to miss out on the Robin Hood craze. You know, not only is it a play on financials and lower interest rates, but it's also a fintech play and you don't want to miss that with the crypto run that we're having. So you want exposure to that and how do you do it? You again like we said earlier you manage the position sizes. You might want to own some YAX names within but something like an Apple overweight that more. Something like a hoie underweight that more. Of course, you know, no dividend growth. This isn't meant for growing your income. I know this isn't dividends, it's distributions. you know, the income has been sort of stable, which is pretty cool with YMAX because you're going to get like the average distributions from all the single stock names by YieldMax. Still high downside. You know, it's going to be less than single tickers by YieldMax, but you still have that underappreciated or should I say that downside potential from owning a YAX ETF like this one. Capped upside cover calls is a part of the game. And you could also still get clapped in a bare market because some of these single stock names by YieldMax are higher beta and IV.
Now Todd, I'm going to throw it back to you on your closing thoughts on my list of the cons of YAX. Thank you.
Because I had one more thing I wanted to say Marcus and that is with these higher beta names within YAX like a HOIE like in you know AI Y for example C3 AI those also have higher maintenance. So, you want to be careful when you're owning those because even if you're not using margin like we use at my channel, they still have higher maintains which sucks up your equity which makes it harder for you to withdraw out of your account. Some people don't want to use the margin but they want to still withdraw out of their account. I have my Erade checking card. I can swipe and do whatever I want with it. I always charge it to my margin. I use that for my bills as well, but if the maintenance is higher for these funds, well, then it sucks up that equity and I can't withdraw as fast. And also it it'll put you in more risk of a margin call. That's why we stay away from high maintenance names or if we do own them, we keep them small so we can keep living the fire lifestyle which again is financially independent retire early. And if you need help understanding maintenance, that's in my volume 3 e guide. Right now you guys are going to see a picture of me and Todd on your screen. We were at a YieldMax event with Michael Venudo from Title as well as with the head and the brains behind YieldMax of Mr. J. Peschelli and me and Todd had a blast. We had what? We were at a a restaurant, a rooftop restaurant together talking about ETFs and YieldMax and even at the event we were always pretty close together. So Todd, how did you feel about that event and how did you feel about, you know, meeting me in person once again cuz we did meet each other earlier in the year in Las Vegas.
>> Yeah, I mean so cool that we get to go to these events, you know, and sticking together in these events, I think, is important because I think you're one of the more uh prominent channels and you give the best information. So, I think that when we're partnered together, you know, you're giving the information, I'm giving the way that I actually use this and live free out of my brokerage account with it. I just think that it makes for a great friendship, a great partnership. I mean, we're friends with all the other YouTubers, you know, they're all they're all great people and everyone at YieldMax was awesome. Meeting Jay, meeting But when it comes to us, Marcos, I just choose to spend a lot of my time with you because I know the value that you have at your channel and I think you see the value in mine. And so, if we can bring this information to the masses where YieldMax is giving the others the chance to live financially free out of dividends, they sacrifice maybe some of the upside in return for the income instead giving them a chance to live financially free. talked about that on the rooftop about how about how YieldMax is going to take over the whole world potentially because they're using the ETFs that are so highly traded in the market like an Apple, like a Micro Strategy, and they're bringing you the ETF via income instead of the capital gains. And if everyone were to capitalize on this, they could get extra income from their jobs and at least take the pressure off their jobs or potentially live financially free if they know how to use these funds right and use margin right, which is what we talk all about at my channel. 1.5 plus million dollar portfolio as well as generating what $700 plus thousand dollars a year in income. And so you were telling me all about your your eg guides and whatnot. So I convinced Todd, I was like, Todd, let me help people who want to buy them with a 10% code. So if you guys want, you guys can either email Todd at akentood 48@gmail.com or go to his website. You'll see it right now. It will be in the description of this video and in the pinned comment section. Use code Marcos. 10% off on any of Todd's guides. And you guys have what? And people said great things about it. So, why don't you to touch on it?
>> Yeah, absolutely. When you buy my eg guides, you get my number and Discord access free for life. It's with any of the bundles. Okay. So, we have a platinum, we have a gold and a silver. It gives you all of my eg guides plus my number plus Discord. And I think our Discord is one of the best Discord communities in the world, I always say, because not only do we have all these other channels at our Discord, a YieldMax channel, a Bitcoin channel, we have a cornerstone channel and we give you the rights offering for Cornerstone. Everyone knows that's how I get my capital gains. It's how I took my account from 15,000 to a million. It was with margin and it was with Cornerstone. And of course, now I'm using YieldMax and that's helping us get more gains. But we talk about all those different parts of my portfolio in Discord. And again, that's free for life when you buy my eg guides.
Moving on to Ulti, we have the pros, of course, weekly income, diversification to about 15 to 30 underlying holdings. It operates like a hedge fund. It could buy more positions, buy less of it, switch out of positions for more implied volatility, which is the name of the game with YieldMax ETFs. You want a higher IV for stable or should I say more income potential than a lower IV fund. It holds the underlines, which is great. It doesn't do it through synthetics as much as maybe something like a Misti or a Coney. It actually holds the underlying, which is awesome. Active management, super high yield of about 80 to 90%, which is great because of that active management of higher IV, which can lead to a higher yield. That's why Ulti is great because it's a super machine for high income potential. And what's cool about Ulti is the hedging within the ETF. Now, Todd, I think that they also do protective puts. I don't think they do. They do do protective puts. Now, that's awesome because some of these names in Ulti can drop like 30 to 50% in any given moment. But these protective puts can hopefully help the fund not drop as much from those single names, bringing down the funds overall value. So Todd, what are your thoughts so far on the hedging and the protective put nature of Ulti?
>> When they came out with that change, you know, that really was like music to my ears because now we can sleep at night owning Ulti. We know that it's higher beta. We know that that's where it gets its dividend from is from the higher IV. Some of those names within, as we always say, they're kind of speculative. Some are index, some are speculative. But now you have the aspect of of the hedging and the active management where they can you know swap things in and out and also you have the potential for salty slty which would then hedge ulti out neutralize it. Remember Jay was talking on spaces about it might not be a one forone correlation but you're still going to get pretty decent protection should they launch that fund. And so that would neutralize our risk. And when we're using margin, as I always say, I mean, where's the risk with the margin? If you're using, let's say, if I have 400 grand of margin, 200 grand's ulti, 200 grand is salty. In a perfect world, you're not going to see much draw down on a given market down day. And as long as you're keeping the dividends high, well, then your margins getting paid down so fast, even if it's long and short, that that's acting as a separate account in your account, giving you that extra outperformance. That's how you see us up 20% year to date when the market's up 5%. It's because we're using margin, but we're not just going all in on margin. We're hedging with margin. We're using vehicles like a YQQ, which you have up on the slide, and I know we're going to get to in a second, but we have all kinds of hedges. Of course, we talk all about those in volume 5. And you know, you know that I have my EG guides and we just talked about margin with volume three. Also, we hedge our positions, of course, and YQQ is one way to do it. And then, of course, we have our put options. And if we get salty with Ulti, that would really neutralize the risk, making margin not even a thing really. The only risk that you would have is with the holdings themselves. And whether you're just going to get good performance or not based on those two holdings, you're not going to get in a margin call, though. you're just going to see perhaps lagged correlation with the indexes because we know that Ulti will not compound up. We always talk about that. We love the income from Ulti and then we can potentially neutralize it with Salty and we can compound our income but we cannot compound our capital gains. So you need the other vehicles that we've talked about ad nauseium at my channel of course and you also just need to be able to protect ulti and you can do that with the salty with the hedges and then that neutralizes your market your margin risk and your market draw downs.
Ulti also has less risk from an income standpoint because people have been complaining about for example let's go with Mie or Misti with lower income and they're complaining about it. So how do you solve that? You go with Ulti. It looks for those higher IV plays to hopefully have a higher income potential. And yes, it's great if you want high income. And like you said, it's not meant for those cap gains or compounding your cap gains. If you want that, then don't look at YieldMax ETFs. And also, it has a super stable NAV right now and income potential, which has been super great. And we'll see how that holds up. And I'm going to throw it back to you, Todd, on any more pros that you like of Volti.
>> Yeah, I like what you said at the very end there. You know, it's it's been much more stable. You look at the chart and how it started out, then they made their changes and you can see how it's just been going sideways since then. And a lot of investors complain about the chart, you know, starting out. But again, they had the changes. And also, this is really dependent on the underlyings, okay? It's not really about it's it's more about the underlyings and how they perform. Just like when Tesla was down big, well, obviously you had to look at Tesla when YieldMax started out. And so the the underlying holdings are what I always watch. And as you know, they're actively managed. So if we have a a slip up with one, he can always swap them out. And they're there's a basket of these funds. So not one will really take you down anyway. And so Ulti is just showing its stability now. You can see it on the chart. You can see it on the returns. And overall, I've been very pleased with the results we've had with Ulti. It's super important to note like the change in the perspectus because people are going to say, "Oh, Ulti sucks." But if you look at the perspective changes, it's been performing great since that change.
Still high risk. It can underperform single tickers just like YMAX. No dividend growth. Stable income though, but it's not meant to grow dividends or should I say distributions. Still high downside though. Yes, there is protective puts, but I think last time I checked it was like 8 to 12% out of the money. So, you're still exposed to some downside. It's not like you're going to just have a stable nav forever. you will see underperformance in a you know a red ulti eventually in a bare market a pullback a recession and, which is fine because everything else will go down in a recession in a bare market unless you're in inverses or treasury bonds or you get lucky with a single stock or something capped upside cover calls name of the game you could still get clap though I I I would say you could get you could lose more money with ulti in a bare market than YAX if those plays because Ulti has higher beta, higher PE than YAX underlyings. So, we could say that Ulti, let's say YieldMax's team of traders, you know, they pick a super highly volatile ETF or should I say stock before earnings come out. Let's say it goes down like 30%. Like, bad pick. It can still go down. Besides protective puts, you're still exposed to some downside. I don't know if you have anything else to say besides if you want to touch on maybe the the protective puts and more downside risk of the cons of ulti Todd.
>> Absolutely. No, you're going to see perhaps more draw down if one stock were to have a negative headline. And also with YAX, it seems like, you know, there there are plenty of holdings within YAX, a lot of large caps, especially to shield it from unwanted volatility. And so, yeah, you're going to have that potential even with the protection in Ulti, but like you said, it's part of the market. you know, when you go to Ulti, you have to understand that this is a higher beta place. So, it's, you know, higher beta, higher maintenance in some cases, which means a little bit higher risk, which means more volatility. So if you're an older investor and you're just trying to retire, you know, for example, even though we're trying to retire early at the channel, you might want to limit your volatility by having so much in alti of course, you know, because it's not about the bull markets. It's about the bare markets and surviving flat to down markets with no volatility or you know, you know, so there's not a lot of premium or we have just a lot of risk in the market, you know. So it's about surviving down markets and flat markets and then the upside will just take care of itself. You just have to minimize that downside risk. Make sure you're hedged with a YQQ with Ulti or or Salty if they come out with Salty. If you have a large position in Ulti, if you're going with a much larger position because you want the income, be aware of the volatility. Hedge it. And then also just accept it that this is, you know, especially if you're younger that you can take that kind of volatility.
Let's talk about Ulti's top holdings. Their top 15 specifically, Ulti has a P ratio of 40. That's high. huge downside in the underlines of Ulti and a very high beta. Ulti has a higher beta than YAX, which is great from an income perspective. So, if you want more income, maybe look at Ulti. Higher yield and also with it higher beta names, it could hopefully have a better income potential. We see Hood, Upstart, Strategy is the top holding. Reddit, we got Palunteer, we got Mara, Coinbase, etc. So all these names that have been performing super well leading to great total returns and great income from Ulti and also it is quote unquote I guess we could say diversified Todd we see technology as the top holding financials communication services utilities industrials etc. I think that's a great slide you put up here for the PE because it's important to note that, you know, 40 is typically a high PE. So that would give you some cause for concern. However, a lot of these PEG ratios are actually quite different. When you look at the growth of some of these stocks like a Robin Hood, like even a Palunteer for example, the growth in these names should be 20% plus. I mean, I haven't even checked the growth. We just know that it's going to be exponential the growth in some of these startup names. So when you take the growth and you actually divide it with the PE, then you get a favorable PEG ratio. And so it actually tells me that a lot of these names within are cheap despite the high PE because we know that Bitcoin is is cheap long term. I mean just by the supply and demand dynamics of Bitcoin. So that would make potentially Micro Strategy cheap or a Robin Hood. we know how fast that's growing, you know, and so so even with the high PE, which is a great point that you noted, we still have high growth rates in these funds, which gives them a favor favorable PEG ratio, which actually makes them not as expensive as one would think.
>> They have deposits with their broker for short positions. So protective puts is unlock in case they need to use it. So it's awesome.
>> Absolutely. And just looking at the holdings, you can see where they're getting their growth. I mean, look at the chart of Robin Hood, for example. We were buying that today on the dip in the membersonly videos that we do. And obviously, we've been talking a lot about that at Discord. Uh my latest buys have been some of these more high beta names like a Robin Hood, like even AIY because they've had a little pullback on their chart. So, it was a nice time to enter. But look at those charts. They've had great moves recently. And so, that's where you're getting a lot of this daily performance with Ulti. I mean, a lot of these moves, a lot of these holdings within are absolutely on fire. Kathy Woods and her ARC funds have a lot of similar names, and you can see how well ARC's been doing lately. That's why I like Oark so much. Oarch also has the 30% maintenance, which you touched on that in the last video that you made about how I like Oark. It has 30% maintenance, which most YieldMax names have 50% maintenance, and it's diversified with the basket of a lot of these stocks that we like in Ulti. So, that's one secret to my success getting ahead in our channel with YieldMax. It's with Oarch because of the lower maintenance that it that it has. It unlocks a lot of our equity, still gives you the upside potential, and it has a lot of the same names that Ulti has.
YMAX's top holdings. Let's go over the top 15. I know there are about 32 Yamax underlyings with new to be added soon. The cool thing about YAX is that when a new YieldMax ETF comes about, they will then actively manage it, quote unquote, by just equally weighting that new addition and making it all equal. So, it's it's not going to be a perfect one for one on equal weights, but you can see it's pretty close. So, equal weighting, which makes a great just in case, let's say Tesla doesn't perform well. You're not exposed to the downside. But on the downside of that, let's say a HOIE performs well, you're not going to get the most upside unless you own more of Hoie. Lower beta than Ulti, lower IV than Ulti, leading to less income, less yield. But that could be fine because we could argue that Whiteax is less risky than Ulti. And we could also argue, Todd, higher quality top holdings than Ulti. Like for example, we got uh oh, we got Bitcoin, we got Google, we got Apple, Exon Mobile, etc. JP Morgan Chase, like we got those highquality names in the indexes in the top 15 names of YAX. So Todd, throwing it back to you.
>> Yeah, agree with everything you said and we might even get some more capital gains ability out of YAX in exchange for the lower yield. And if you look at the chart construction of YAX, you'll see that it has the ability to move with higher highs and higher lows. Unlike with an ulti, it pretty much moves sideways. And even when you get that big move in ulti up one or two% in a day, it's usually capped by the distribution. And so it goes sideways. You see a lot of that with YMAX, too. But a little bit more days gains ability and ability to hold those days gains potentially if they have a lower yield, you know, so less capped upside. I mean, that's not where all the lower yield comes from. obviously the lower yields also because it's spread out between so many names and so you have to take that into account but just look at the chart of YAX and Ulti and you can see that YAX has made for a little bit more capital gains appreciation in exchange for the lower yield. I think we did the math on one of the videos one of the you know the YAX Ulti video that I did recently and it was like 25% up or 30 30% up from the lows with YAX and Ulti was 25% up. So, it had it beat by about 5% or so on the capital gain side, just a lower yield. But that gives you best of both worlds, some investors would say. So, I like to have a combination of the two for that reason.
Risk is super important, especially with YieldMax. Nothing is free. There's going to be risk. So, we're going to touch on the risks of YAX and Ulti. We saw Todd in April that huge pullback in the market from tariffs and whatnot. And we saw Ulti at the low on the one-year chart go negative 14% in terms of its total returns. So this is distributions or should I say income plus the share price in the NAV negative 14%. Ulti performed the worst versus the NASDAQ 100 or the QQQ and even VO or the SNP500 and even performed worse than YAX. We saw YMAX go down 9%. Total returns and they went down more than the market. So yes, these can go down more than the indexes. We're not saying that these are going to be great funds. They're going to perform well in a recession, in a bull market, right? Let's talk about, you know, a bare market, a pullback. They're going to go down probably more than the indexes. And that's fine. If you want if you love YieldMax, if you love high income, then you need to know the risks. And yes, Ulti, we we said this earlier, Todd, they have protective puts, but they're more out of the money. So, you are still exposed to that downside of the underlyings that could go down way more. Ulti has that higher implied volatility, higher beta, higher PE. They can go down more. They can go down super super fast versus a YAX and even the indexes.
Marcos, you did not say too much because it's important that we know the risks of these funds. Nothing in this world is free as you said and a lot of people think that we just push YieldMax and we're just advocating for risky strategies, especially with margin, but that's not the case. Okay, I'm always watching my position sizes with YieldMax. Everyone knows that I'm staying diversified and I buy them small. And also, let's point out those total returns because that's a great graphic that you have there on the screen. Ulti down 14, YAX down 9. And I'm so impressed by YAX's draw down. Only down 9 when the QQQ was down 8. So I mean that's and they were pretty close there. 8.8 versus 9.6. So that's pretty good for YAX for all those people out there who think it's so risky. The proof is in the pudding as you said. And then you have Ulti which is down 14% proving that it can have bigger draw downs. And so this is what we're trying to protect against. Yes, in a bull market we're going to do just fine with YAX and Ulti, but in a bare market, especially if you're leveraged up with margin, and I try not to use much margin on my channel. We try to do it all conservatively, but if you have some margin, you're going to see magnified draw downs with something like Ulti if you're all in Ulti. So, the key with Ulti and YAX is keeping your position size manageable. I try to go 10% max in each one. And also, hedge alti with put options like we always talk about at the channel because then if you have a massive draw down in the market like we had and then ulti falls four or 5% in a day, your put options are going to be up thousands of percent that by that same token on a down day. And so that's how you're going to offset ulti draw downs along with YQQ. And everyone just see this stat right here in front of you. You see that the ulti drawdowns are bigger. So, I would think twice before putting your entire portfolio into Ulti because again, it's going to have a massive draw down if there's a big market downturn. And you want to make sure you minimize that volatility as much as you can. Even if you're younger, okay? Why take the extra risk? Why not just uh minimize draw downs with YQQ potentially SLTY if they come out with that? And and just be careful when you're owning Ulti. Okay, the draw downs are there. We saw it in the chart here. Marcos is pointing this out. That's a very good graphic for us to look at. Manage those position sizes with Ulti and YAX.
YAX's dividend is going to be or should I say distribution less than Ulti from a yield standpoint which is fine. We've seen I guess you know it went from 4 weeks now to weekly which is awesome. And we've seen stableish income which is fine. You know every single week it's not going to be perfect one for one. Yeah. Well, you see the little spike up right there at the end of July. And when you have an up market, obviously your premiums are going to be worth a little bit more. And so, you're potentially going to see an income bump when you have good months in the market. And so, yes, they've had a little bit lower dividend yield from their inception, but we're also getting a lot more stability this way. And if we keep getting a bull market, we should keep seeing increased IV for these holdings, which would lead to higher dividends. And when you're selling calls, obviously that's a benefit. And when the market's growing, you can increase your IV, increase your distributions safely through the IV of YAX. And I like how they're keeping it steady like that. And if we can just get a nice month in the market, that's just icing on the cake with extra premiums because cover calls, we all know, always perform better in a rising bull market or just the underlying going up. You want that. So, in a week or a month, for example, with YMAX and Ulti, any week where the underlines go up quite a bit, you're going to see that boost in income like you see those spikes go up. And then, of course, it's not going to always stay like that because the markets are going to be volatile. We're going to have up weeks, down weeks, flat weeks, but overall, I'd say that the dividend is super solid.
Ulti's dividend has been more stable than YAX. We've seen it go from four weeks now to weekly. And the income has been, you know, it looks like it's not a lot, but we need to know that Ulti is a $6 ETF. So, you're going to see like what 10 cents every single week. And it's been paying 9 to 10 cents super super consistently reliably for investors, which is awesome. which is why people like Ulti right now because of the appreciating NAV with the income. Total returns have been super great as well as the income being super consistent, stable. It's not been volatile. It's just been super stable. Todd, thoughts?
>> Yeah, I mean, it's hard to argue with those dividends right there. They've been very stable. And some members will say, not so much members at our channels cuz they're more astute, but when you're new to this whole yield max investing idea, a lot of people will say, well gosh, 9 cents, that's not anything. That's we're not getting any kind of yield off that. But of course, it's all a percentage. It's all a function of the share price and the IV within these names. So the dividend, even though it looks smaller and smaller as the share price drops, the income stays the same. A lot of people say, "Gosh, I mean, if the stock keeps going lower, we're not going to get any dividends and it's just going to go to zero. What a Ponzi scheme." But how can they say that when all they have to do is either have a reverse split, which go Google this, it's completely cosmetic. We were on Spaces with Jay, and he was saying how he doesn't understand why reverse splits are a problem with people either because it's just cosmetic. We're talking about the rapper, the ETF that holds the underlyings, not the underlyings having a stock split. That would be a problem maybe, but it's the rapper. Okay, so the ETF vehicle has a split. It just makes the share price higher and of course it's going to adjust the dividend as a result, but the dividend will always be the same. It'll always be the same whether it's up high or down low. And even if we're at $1 a share, we're still going to collect that dividend. Even though it looks small, it's still going to be the same income, the same yield, because the IV is the same, the 80% yield or so. and we just continue to live financially free out of our dividends as long as we don't sell the shares. As long as we keep the shares, then the same income is coming. Of course, you want to not drip, but remember, buy on dips, drip on dips, so you can keep replenishing your income should the should the distributions fall like in a bare market or something like that. And you always want to compound your income, of course, so you keep buying on dips. But we're going to see this trend with a lot of yield max stocks. And people need to go ahead and get used to it that even though the share price drops, the yield stays the same. Even if it's a small looking yield, the percentage is the same even with the split.
It's super crucial to look at the total returns for cover call ETFs, especially with YieldMax because your return will mostly come from income. These funds are meant for income. If you want cap gains, if you want growth, then don't invest in YieldMax. We're looking at the one-year chart. If we just look at the price return of the share price, not including the the distributions, so no income at all. The share price return from Ulti was negative 48%. That's what you're going to see on Robin Hood, on Weeble, on even Fidelity, etc. But if you factor in total returns, so factor in the income, Ulti is up 26%. Now, if you guys want to see this chart, it will be in the middle link in my description for seeking Alpha because I always use Seeking Alpha charts to look at the total returns. You're not going to see anywhere else besides Siking Alpha to my knowledge and other websites that are also paid for, which is, I guess, a downside to seeing total returns. Well, hats off to you, Marcos, for just putting the chart up there for everyone to see. Yes, they're going to complain or be shocked at first glance when they look to the uninitiated. It looks like a terrible chart. It looks like it's going down to zero. However, as I always say, as you just said, you have to factor back in dividends. Once you factor back in the dividends, you see a total return of 26%. And that's just so refreshing. That's so refreshing that you put that there because you see a lot of comments about newcomers being scared of this fund because of the chart looking so dire. But you have to factor back in dividends with any high yielding vehicle. Even Cornerstone, YieldMax, Rec Shares, Defiance, please factor back in dividends to get your total returns.
The one-year performance of Ulti versus YAX. We're seeing Ulti underperform YAX just barely by 2%. Ulti is up on a total return standpoint 26.83%. Yax is up 28.57%. So YAX is giving you a little bit more outperformance against Ulti, but who knows? Maybe longterm YAX could outperform more. Ulti could come in. And it's super hard to pick one. Well, TJ is just dying to get in here. And TJ just I guess he he remembers the Yield Max event. Say hi, TJ. Wave. Yeah. And he he just um he had a great time. And he always talks about you, Marcos. Sorry. So look at the performance 28% YAX ulti 26% also a great stat there because we need to know who's outperforming you know what is the truth the truth or and the numbers and the returns so I like to use YAX for the capital gains aspects of things and then I use Ulti to compound the dividends and when we use margin for Ulti it really makes for a dividend snowball effect essentially where you're getting such high dividends you're paying down the margin fast and when the margin gets paid your account grows. It's just like real estate where if you reinvest in your house, if you take out a line of credit with your house and you actually reinvest in it, then your value of your home grows. So here when we use our margin, when our margin gets paid down with Ulti and we use a little bit more margin because of the higher yield and because of the stability of its chart lately. So you use a little bit more margin. Once your margin is paid down with the extra dividends, then your account grows by the equivalent amount. So your margin is gone. Your account grows by the same amount that your margin debt was. And that's the secret to really getting ahead. And so I use a little bit more margin with Alti. I protect it, as you know. You know, we said it a thousand times, protect it with YQQ, protect it with puts. And then YAX, I use a little bit of margin as well for the capital gains. And then I kind of trade around YAX a little bit more. I might trim that a little bit more around highs and lows. So, you know, trim the rips, buy the dips in YAX a little bit more than you would in Ulti. I just let that thing go because it's going to go sideways and we just reinvest those dividends but on the dips.
>> Todd, I want to throw it back to you on, you know, your eg guides and whatnot and why people love so so many people love your eg guides on high income investing and so much more.
>> Yeah, thanks Marcos. I mean I think they enjoy the service because I give you my phone number and Discord with the eguide. So whenever you have questions about anything in the eguide, you can call me at any time. A lot of people don't really believe that, but you know, as you said, we have thousands of members at Discord and I have all their numbers. And so, if you want to set up a time to talk, you just text me and we'll figure out a time then. And most of the eG guides here just give you the foundation that you need to live out of your brokerage account, you know, to not only outperform the markets, but to get dividends and withdraw out of your account using it as a checking account essentially and to live free out of. And so, you get the eG guides, you get my number and Discord. And Discord's also a great resource if you have more questions on your particular brokerage because not every broker is the same. Some brokers have different maintenance than other brokers. A lot of people have other ideas in those Discords. I'm sure your Discord a lot of people talk about other ideas as far as using loans, using other ways to level up your account because obviously I use dividends to qualify for more loans. So that's how I've also leveled up my account. And we talk about all those ideas in Discord, which is free when you buy my eg guides.
Let's see which is the winner. Todd, $100,000 into YAX or Ulti. Is it going to be YAX? Is it going to be Ulti? Both or more? I'll let you pick and then I'll pick.
Great question. That's a tough question, Marcos. I have to admit, because I like them both for different reasons. I like Ulti for the dividend compounding. I like YAX for the capital gains, a little bit more market participation on an upday, although Ulti has been doing that as well. And you saw the total returns. They're kind of neck andneck. So, if I had a choice between the two, it would really be hard to make a choice. So, I just go with both. But, I do have Ulti at a little bit higher waiting than YAX just because I know that we're potentially going to get salty to hedge out Ulti. And I know the higher dividends in Ulti actually lower my risk because if I'm using incremental margin to get ahead and then the margin gets paid down faster with the higher yield then my break even is reached faster which lowers my risk actually because your margin reduction has been accelerated with these higher dividends. With these higher dividends you're able to outperform the markets because as again your margin gets paid down your account grows by the equivalent amount. So, we're reaching break even faster in Ulti and we're growing our account faster through margin, which is counterintuitive to what people think. People think margin is more risky, but if you use it in small amounts with higher dividend amounts, it's going to pay down that margin even faster, reaching your break even again even faster.
>> So, both.
>> So, I have to say so both, Marcos, because they're both great, just for different reasons. For myself, it's a tough pick. I would go with YAX, but hear me out. You have 32 names of YieldMax, right? The underlying YieldMax ETF, single stocks that are bullish. What if one day we see a 100 YieldMax ETFs? So, we could see YAX be maybe the a power innovative, let's say, uh 100 index. I don't know. I I would say that YAX is less riskier than Ulti. Everybody knows me. They know I don't like too much risk and whatnot. So le less riskier, lower beta, less volatility, but still that outperformance versus Ulti. We could see it more in the future. I'm going to go with YAX.
Todd's going to go with both. Yeah, use both. I think when you're not using margin, YAX makes a lot of sense. Just it's a great balance of everything. But when you're using extra margin, then again, the higher income with Ulti with the stable NAV makes it to where your margin is not really volatile. Your account staying steady as she goes, and then your margins getting paid down even faster with Ulti, which is just a different way to grow. Even if the market's going sideways, you're still growing more with YAX. But if you're in a major bull market, I would have to agree with you, Marcos, that YAX will probably do a little bit better for you. And so just keep those two points in mind. Now, if you guys like this video, please give it a like because this cute puppy did. And don't forget to check out our last episode with Todd on $100,000 in Ulti versus Misti. It was a banger of a video. I love you guys so much. Crushing the stock market and take it easy. Peace.