Transcription
Investors often wonder which high yield ETF is the best choice, Ulti or YAX. In this video, we break down the numbers, the returns, and the risks so you can make the smarter move. So stay tuned.
Welcome back to Simply Money. Today we're looking at two very popular ETFs that are income focused. We're looking at ulty verse YAX. Which one has performed better in the back testing scenarios that we do? Let's dive in and take a look.
Before we get started, comment down below. Do you own Ulti, Yax, both? Neither? Why and why not? Continue to share with the community what it is you're doing and why. as we help build up the community's knowledge and help one another. And I appreciate it.
Remember, this is for educational informational purposes only. I'm not a financial adviser. I'm doing this to provide you back testing data for you to make your own decision. Always do your own due diligence. Everybody has to make personal finances personal and you have to make your choices based on your goals, your risk tolerance. So, here we go.
Okay. From March 6, 2025. So, we can compare both funds starting at the same time frame. We'll start here with Ulti, the starting price of $65. We're just going to scoot down. You can see we came up, got up to 630. Everybody was flying high. Money was pouring into the fund. And now we're seeing it starting to go down and everybody's panicking and you're seeing all the naysayers online say what it is they say. And that's okay. Everyone's going to make their own choice. What we did in this scenario at the end of this time frame, we're looking at the end of September 26 was when I put this together. So $547 was where it was at. That's a 7.29% drop in those 6 months. If you annualize that, that's 15 almost 15% drop in one year. Doesn't mean it's going to keep dropping at the same rate. It may go back up. It may drop faster. We don't know. And that's something that people struggle with is trying to predict the future. And you cannot do that in the stock market. It is a finicky thing. If your risk tolerance is zero, you may just want to put your money in a mattress and watch it depreciate from inflation. But that's up to you. You have to make your decisions.
We started these scenarios. We do a $50,000 investment of both. So, we're comparing the same amount. And people say, "Not everybody can start with 50,000." I get that. Maybe you start with $1,000. If I put $1,000 in here and ran it down, the growth and depreciation would be the same percentage. But we want to look at this in a larger scale for people who are thinking about maybe putting in extra money into these funds. You can scale it down. If you'd like a copy of these sheets, you can go to my buy me a coffee page description down below. You can see what we have to offer there. Feel free to look at those. I just do the $50,000 as an easy, reasonable amount, not outrageous. Yes, it's out of reach for a lot of people, but I'm not doing a million dollars. I'm doing something that if you get into investing, you'll be at 50,000 before you know it. Just get consistent and stick with it.
With that 50,000, we're buying 8,264 shares. The dividend paid out this first week of March was 47 cents. So, your dividend was $38.42. That allowed you to buy 635 new shares. Now, on this, we are doing drip. We're dripping this on both of these scenarios. And then we'll look at non-drip after. You're going to see this. I didn't cherrypick this. This just happens to be when I lined it up with YAX. This is actually the last payment of the monthly pay before Ulti went to the weekly pay. That's why you're going to see this amount at 47 cents and then it drops down and stays pretty consistent. So, don't let this fool you. That was just four weeks worth. But here you have starting the weekly pay. Obviously, with that larger amount, you were able to buy more shares. It takes your share total up to 8,899 and your balance to $53,843. Starting with the weekly payment, you can see that your shares are new shares, you're getting about 151. Up here, you got 192. So, there's some good growth going on there and accumulating shares. And you can see your dividend amount, the amount that you're getting. Again, don't look at this last monthly pay. weekly pay. Now you're getting 900, 887, 918, 860. This nice consistent. You can see it starts going up as we keep going down. It's up into the,000 1,100 1,200. And as we get down here to the end, we're riding right around 1112 almost poking at 1300 now. So dividends being paid out and then reinvested. You've had $35,000 that they've paid out and you've reinvested it, accumulating 5,883 more shares. Your share total is up to 14,148. If you were to turn drip off now and start using this income, now you're talking about having a $1,200 to $1,300 payment each week off of this distribution. And your balance is up to $77,000. So dripping this, you've gained $19,000 on your $50,000 investment. That's a pretty nice accumulation. That's about a 40% 38% growth in your portfolio in 6 months. So even though this share price has dropped some, you've grown your portfolio by 38%.
Now let's look over at YAX. We kind of have the opposite tail here. It looks like we have YAX price at $20.33 with the $50,000 invested. That gives us 2,459 shares. So dividend here is 24 cents. Paid us $592. Got us 29 more shares. And our balance is $50,593. Let's go down the share price column I here. YAX. You can see it dropped and then it started accumulating got up to 2434.21.84 and it comes down here and look where we're ending at September at $12.61. This is at a 48% drop. Yeah, I don't know about you. Are you in YAX? Have you been holding it through this dip, if we want to call it a dip? How are you fairing? How are you doing in your portfolio? You don't have to give us numbers, but are you up? You in the green? Are you in the red? Are you taking income? Are you just reinvesting? Share in the community down below how you're handling this if you own YAX.
Now, with that, your shares being held. You're up 646 shares. have been able to accumulate some more shares because especially with the lower price, you're buying more shares. You see here, let's look at the second week. You're looking at 12, 18, 16 shares to start out with. And as this price is plummeting, your dividend payment is $592. That's the other thing. Your dividend payment now is down quite a bit because this share price is down. The dividend is down as well, but you're getting more shares off of this dividend. Your total, here's another thing you got to look at. Your balance now is $39,000. So, your price has dropped. Your dividend per share dropped. You know, it was 24 cents and down to 10, 18. It's all over the place. You have 11 up to 22. Here we're looking at 13, 13, 13, then 8. So, it's really dropping. It's the lowest one they've had in this whole scenario we're doing is your last one. And you're only getting 20 more shares. Your dividend payment was only $253. With even dripping, you're getting less. I'm just not sure that I'm a fan of YAX. I'm not knocking it. Maybe I'm missing something. And of course, we'd have to go back further and get more data on this. But YAX, I think they're going to have to do something big here to change. They're going to have to make some some serious revamping of the way they're managing this fund. In my opinion.
You can see that by dripping, if you did the same amount, $50,000 on both these funds, the Ulti would be up by $43,000 more than the YAX cuz YAX dropped. You're not up 43,000 from your fund. You're only up what was it? $19,000, which is good. But you're compared to YAX. If you did 50,000 in each, Ulti portfolio would be $43,000 higher than your YAX portfolio. You've received a total of $12,000 dividend payments. So with the drop in price and then adding back in your dividends, you you're down $23,000. That's a pretty big significant drop about half of your value in just 6 months.
Now, let's slide over here to not dripping it with Alti. You have your no drip balance, your dividend, and again, the dividend is not going to grow as fast because you're not buying more shares. Whatever you bought with the 50,000, that's the number of shares you have all the way down this. You're not selling shares. You're not buying shares. You're simply getting the dividend, whatever it is, month over month. So, with Ulti, as we come down, our balance is staying pretty consistent. It goes up a little, down a little. our dividend. Again, disregard this outlier here. We have our dividend at $900, goes down a little bit to $700, then starts climbing back up again, but it's been pretty consistent. $700 to $1,000 has pretty much been your weekly dividend throughout this time frame. If you're not dripping, you would have received $29,000 worth of dividends. your balance is only down just under $4,000 which isn't huge. That's you could make that up in a matter of a couple weeks with a little bit of a run. Little rise in the market could offset that pretty easy. A little increase in the dividend. All sorts of little things could that's very minimal. That wouldn't bother me at all. And you received basically more than half of your money back in 6 months. Your initial investment, you've gotten almost $29,000 back and you still have $48,000. So, it's not like you've lost anything in this scenario so far.
Now, YAX starting out, you can see your dividend. Look at this dividend. Let's look at this real quick. Coming down, your payment is $592 all the way down here. Now, your payment's $201. See, I'm not excited about that. I want to see if I'm taking the entire distribution. I want to see my distribution stay pretty consistent, if not even rise up a little bit. it's probably not going to go up unless I'm buying a little bit more, redistributing, putting some of that back into it. And that's why I do that. I do a full drip now, but when I want to live off of that, I'm going to use some of it to reinvest to give me cost of living raises to build my dividend payment out. And that's just me. That's how I would operate in this type of scenario on these funds. Not all funds. I wouldn't do it with all funds like with SCHD. I know people don't like that because it's such a small yield, but when I start drawing out of that for income, it has kind of its own built-in cost of living raises. The dividend raises, the kagger is about 12% 10 to 12% per year. That's automatically kind of built in for me. I don't have to reinvest to get that raise when I'm withdrawing the money. But yield max at dividend. Look at the comparison. Taking the dividend, you've got 29,000, you got 11,000. But look at this. You're also down $29,000. Your portfolio is down to $31,000 and your dividends were only 11,000. Where here your portfolio is down to 48,000, but you've received $29,000. I'm telling you, I'm as far as these two funds go, to me, it's hands down for Ulti. What's your thought? Would you buy Ulti over YAX? I know there's going to be some comments, which is fine. Throw them in there. Neither. They're both garbage. You're going to lose your money in all of them. get that on pretty much every video, which is fine. I'm not telling you to buy these. Don't ever tell anyone that I said buy Alti or buy YAX or don't buy them. I'm just telling you what I think and my opinion. Whatever my two cents are worth, they may only be worth 1 cent tomorrow because of my opinion here is not correct. So, we will see. But this is just the data what it shows. No drip difference. You're up with Ulti by $9,000. So if you combine your loss and your dividend payment versus the loss and your dividend payment here, Ulti is I definitely on this scenario, this competition here, I would say Alti wins this one hands down. What do you think? What funds do you want me to compare? Throw that in the comments below. I appreciate you joining me today and I'll see you next time on Simply Money.