MSTY Yield ETF

[shinnosuke]

Not financial advice. I am not your financial advisor.

There is a thread on MSTR. Here comes one on MSTY, an ETF connected to MSTR which pays out monthly. I put it to the test and will show you what happened.

As of May 8th, I owned 310 shares of the MSTY:

MSTY_8May2025_1227PM.png (88.01 KiB) Viewed 965 times

On May 9th, I received the dividend which I have elected, for now, to reinvest:

MSTY_9May2025_511 PM.png (72.41 KiB) Viewed 965 times

Shares increased from 310 to slightly over 341. Lest you assume that the payout in May is just a fluke,

MSTY_Dist_Yield_8May2025.png (152.63 KiB) Viewed 965 times

The full name and purpose of the fund:
YIELDMAX MSTR OPT INCM STRTGY ETF

It owns:
MSTR US 06/20/25 C390 +17.93%
United States Treasury Notes 3.88% +17.13%
United States Treasury Bills 0% +12.28%
United States Treasury Notes 3% +10.29%
FGXXX First American Government Obligs X +6.45%
United States Treasury Notes 4.25% +4.95%
United States Treasury Bills 0% +2.50%
United States Treasury Bills 0% +1.53%
MSTR US 05/16/25 C330 +1.50%
Mstr 06/20/2025 390.01 P -16.61%

Income from start of fund:

04/04/2024 4.1286
05/06/2024 2.5239
06/06/2024 3.0300
07/05/2024 2.3320
08/07/2024 1.9405
09/06/2024 1.8541
10/24/2024 4.1981
11/21/2024 4.4213
12/19/2024 3.0821
01/16/2025 2.2792
02/13/2025 2.0216
03/13/2025 1.3775
04/10/2025 1.3356
05/08/2025 2.3734

The payout I just received and reinvested.

I should also mention that I now own some MSTR.

[shinnosuke]

Bought two more shares of MSTY today. (So now a total of 343.3352) Looking forward to June's Record and Payable Dates. Looks like the June payment will be less than the spectacular 10% in May. However, it's nice to get a "dividend" every month.

MSTY_20May2025.png (21.19 KiB) Viewed 511 times

Just in case it isn't clear, I can cancel the reinvesting of the payment and take the money as income for my living expenses in my old age. I want to build the number of shares I own before doing that.

[Lemon Thrower]

Take a look at BITX. 2X BTC fund. Pays a monthly dividend of about 1%, so about 12% a year. I know MSTY pays 12% in a month some times, but its still worth looking at.

[shinnosuke]

Take a look at BITX. 2X BTC fund. Pays a monthly dividend of about 1%, so about 12% a year. I know MSTY pays 12% in a month some times, but its still worth looking at.

Will do.

[shinnosuke]

Here's Adam, back to discuss the yield. 16 minutes if you don't want to be poor.
https://www.youtube.com/watch?v=Cm57Fld53rQ

June's yield news coming at you tomorrow..

[shinnosuke]

It's tomorrow. Take a look.

MSTY_6Jun2025.png (110.08 KiB) Viewed 346 times

The yield (dividend) came in at $1.4707/share of which I had 343.3352. That works out to some nice yield...140%:

140pc.png (47.93 KiB) Viewed 346 times

Today I received that in cash to my Schwab account. $504.94 in yield

MSTY Cash_6Jun2025.png (135.26 KiB) Viewed 346 times

Schwab moved that cash to my MSTY holdings and we can see my new total number of shares: 367.7995

MSTY_6Jun2025 new share total.png (33.15 KiB) Viewed 346 times

24.4643 new shares.

Ain't Bitcoin great? A volatile asset/commodity/medium of exchange that can be harnessed to pay for retirement.

[shinnosuke]

July Update:

The yield dropped some more in July...

1_MSTY 7Jul2025.png (82.16 KiB) Viewed 226 times

However, annual yield is still 129%

2_MSTY 7Jul2025.png (56.99 KiB) Viewed 226 times

Today's price action:

3_MSTY 7Jul2025.png (98.77 KiB) Viewed 226 times

[shinnosuke]

Shares before dividend:

4_MSTY 7Jul2025.png (22.6 KiB) Viewed 226 times

Shares after:

5_MSTY 7Jul2025.png (21.9 KiB) Viewed 226 times

So, again, I bought only 312 shares of MSTY and now I have 389.6 after three monthly yield distributions. (Edited to correct the number of shares I have purchased with my own money from 310 to 312.)

[shinnosuke]

MSTY paid me $461.09 in dividends today.

MSTY cash today_1Aug2025.png (61.75 KiB) Viewed 127 times

[shinnosuke]

And then that cash was reinvested and now I have 414.6196 shares. In other words, roughly 25 more shares. That makes the annual yield 129.46% (TTM).

MSTY_2Aug2025 more shares.png (19.69 KiB) Viewed 111 times

[Recyclersteve]

Not gonna claim to be a crypto expert, but generally dividends are taken out of the price of the underlying asset, so there’s no such thing as a free lunch.

For instance, a $25 stock that pays a 25 cent dividend has 25 cents taken out of the price of the underlying asset on ex-dividend dsy. Remember, ex is Latin for without (i.e., she’s my ex-wife because she is without me).

[shinnosuke]

Not gonna claim to be a crypto expert, but generally dividends are taken out of the price of the underlying asset, so there’s no such thing as a free lunch.

For instance, a $25 stock that pays a 25 cent dividend has 25 cents taken out of the price of the underlying asset on ex-dividend dsy. Remember, ex is Latin for without (i.e., she’s my ex-wife because she is without me).

You're right. The price has fallen, but I am increasing the number of shares I own. Should I expect the ETF manager to drive the price of the shares to zero?

Just to clarify, this ETF holds no crypto directly. See below:

MSTY Holdings.png (141.28 KiB) Viewed 91 times

[Lemon Thrower]

Not gonna claim to be a crypto expert, but generally dividends are taken out of the price of the underlying asset, so there’s no such thing as a free lunch.

MSTR and MSTY do it differently. Because they hold an asset that is volatile when measured in fiat, they themselves are volatile. They capitalize on that volatility by selling options.

Your fundamental point is a good one though as it pertains to MSTY. It tends to fail to track the appreciation in MSTR or BTC.

As for MSTR, it also fails to track the price of BTC over short and medium term periods. Think of it as an MS-65 gold eagle you buy for 1.7x the price of the bullion. However, long term, there is very good reason to think the MSTR premium will expand signficantly, which is quite the contrast to gold. I call to your attention Michael Saylor and Phong Le's comments on MSTR's 2Q2025 earnings call.

[tdtwedt]

MSTY hit a high of $46.50 in November 2024.

Now the stock price is $18.23 nine months later.

https://www.cnbc.com/quotes/MSTY