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CONY and MSTY differ in the stocks they’re tied to and their associated performance and volatility, ... [+] as well as the ensuing returns and dividend yields each ETF delivers to investors.
Exchange-traded funds (ETFs) offer investors access to different strategies, sectors, and asset classes, whether they be passive index investing or more complicated options strategies like those offered by YieldMax ETFs. Two of YieldMax’s popular ETFs, YieldMax COIN Option Income Strategy ETF (CONY) and YieldMax MSTR Option Income Strategy ETF (MSTY), provide investors exposure to options strategies tied to stocks in the cryptocurrency space, Coinbase (COIN) and Strategy (MSTR).
This article will compare the holdings, performance, risk implications, and pros and cons of both CONY and MSTY, helping investors to determine if these ETFs are right for their portfolio.
Why Invest In YieldMax Funds?
Investors should consider investing in YieldMax funds like CONY and MSTY if they’d like the opportunity to earn more dividend yield through options-based strategies. Investors in YieldMax ETFs can earn regular income, risk-adjusted returns and exposure to an asset category like cryptocurrency or without direct stock or asset ownership.
YieldMax ETFs can come with downsides like limited returns, market volatility and high expense ratios compared with direct stock ownership. These ETFs can also lead to higher tax burdens due to high dividend yields, so investors should research these funds and evaluate if the fund strategies are right for their investment strategy and financial situation.
Understanding The Basics Of CONY And MSTY
Below are the basics of both CONY and MSTY, similar income-focused focused ETFs offered by YieldMax which utilize options strategies to deliver attractive income generation and exposure to volatile stocks and sectors with capped gains.