$ProShares Bitcoin ETF (BITO.US)$ Overpriced right now. Goin...
$ProShares Bitcoin ETF (BITO.US)$ Overpriced right now. Going to liquify my position and look for something that doesn't jack the dividend yield way down before ex date.
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Chak : No bitcoin ETF give any dividends check on it
Agent Smith 404 OP Chak : That's not true. Simplify's Maxi does, BitX does, and so does Yieldmax's Ybit. Those are just a few off the top of my head that also pay dividends. Like I said this fund is overpriced imo, and messes with the yield way too much.
Chak Agent Smith 404 OP : All these yeildmax ETFs are Ponzi schemes , your underlying value is dying
Agent Smith 404 OP Chak : I didn't say I was going to buy Ybit. I was just using it as an example.
JennyLeitch : How do they mess with the yield?
Agent Smith 404 OP JennyLeitch : At the start of the month, it was around 61%, and it is now sitting around 45%. They have a habit of doing this every month. Jack up the yield to entice new buyers and then dump 10% to 20% right before the ex date. I understand dividend yield is not a guarantee, but I don't like the gamesmanship.
Money Enthusiast Agent Smith 404 OP : Distribution are based on the funds expected taxable income for the year. They must distribute a large percent of their taxable income to avoid taxes on the funds gains. To some extent they do control this by estimating their expected remaining taxable income that they need to distribute for the year and dividing it by the remaining distributions for the year and then distributing that portion. I'm not saying if it is or isn't sketchy but that's the process.
Agent Smith 404 OP Money Enthusiast : Right, I understand that. However, wouldn't it make more sense to just keep the higher distribution rates to avoid more of the taxes? The drastic cuts to dividend yield doesn't make sense to me, but I'm not an IRS agent either...