The drop in NAV of this ETF

Tazzin : The real danger is when the NAV doesn't recover after the payout day, and instead keeps dropping for extended months. Then you would want to look for a way to exit, or to hold on and hope it makes a come back if you believe in its underlying stock (eg NVDY to NVDIA, MSTY to MSTR).

So far, of the YM funds, MSTY and NVDY are doing well with little to no NAV decay, though they are both a bit pricey rn. For ULTY, it dropped a lot since inception, then is now stable around 10 to 11 for the last few months (the best thing you could ask for in these sort of funds tbh), and with some changes coming to it, there's hope for it to bounce back. But the main appeal of ULTY now is it's low cost and high yield, allowing you to put less upfront investment for decent returns.

101824250 OP Tazzin : Thanks for your reply. If that is the case i would rather to exercise the covered call strategy on the shares i wish to own where i can possibly earning the capital appreciation as well as the premium and no need to pay the insane 30% withholding tax for the dividend received which is actually my cost of investment.

Tazzin 101824250 OP : Yes, if you can do your own covered calls, go for it. People opt for this one because they either don't know how to, or lack the time to, so they essentially 'pay' someone to do it for them (and that also puts you at the mercy of the fund managers' competence). At the end of the day, these funds are only if you want an income, it's not meant for growth

Case1153 : I buy long dated puts at my entry price. Draw my dividends all year then exercise my put options. I get out at my entry price. Just don’t overpay for the puts. After 2 months dividends I have the cost of my puts recovered then the remainder of the years dividends are all profit

101824250 OP Case1153 : Sound feasible but too much cost incurred (put option cost, 30% withholding tax, forgone potential upside etc) and the longest dated option is only 6 months from now and not liquid. The strike price is integer and you more or less will incur some losses if the etf price cannot recover unless you bought the one strike above your entry price which will actually cost more. Will be interesting to find out the actual performance of the return less all the costs and is it still worth buying?

70130849 : they take your money and return back, making it taxable, nothing more than that. it's a hook ...better buy a growth etf which gives u 3% dividend but good return.