ULTY: A Yield Trap, Still A Sell

YieldMax Ultra Option Income Strategy ETF continues to underperform, posting negative total returns despite a high AUM and eye-catching distribution rate.

ULTY’s active, high-beta equities plus covered call strategy has not delivered, with a -68% price drop and total returns trailing even T-Bills since inception.

Recent mandate refinements added some lower-beta stocks, but the portfolio remains overwhelmingly volatile and fails to generate robust, risk-adjusted returns.

We maintain a 'Sell' rating on ULTY, urging investors to focus on total return rather than headline yield, as capital erosion persists.