"It's tempting to think about throwing in the towel on an ETF that has so much negative momentum riding behind it. However, when it comes to the YieldMax ETFs, such as the YieldMax MSTR Option Income Strategy ETF ( NYSEARCA:MSTY) and the YieldMax Ultra Option Income Strategy ETF ( NYSEARCA:ULTY), I do think one has to step back and consider how such intriguing yield-boosting ETFs fit into their portfolio."
"Are such popular yield heavyweights the basis of a specific trade? Or are you looking to just increase the average yield of your personal portfolio? Either way, capital losses and negative momentum have been the name of the game, and they could continue to be over the foreseeable future. If you look at the charts of either YieldMax ETF, you'll pretty much see a line that goes straight down."
"MSTY and ULTY have been gravitating lower and fast! Of course, if you zoom in a bit, you'll see that there have actually been periods of strength, but, for the most part, they've either been limited or short-lived. Either way, I view both ETFs as still worth pursuing once volatility looks to surge higher as we head into the midpoint of the fourth and final quarter of 2025."
YieldMax ETFs MSTY and ULTY have experienced significant negative momentum and sharp price declines, producing largely downward-trending charts. Investors face a choice between treating these ETFs as specific short-term trades or using them to boost long-term portfolio yield. Capital losses and persistent negative momentum are likely to continue. Periodic, brief rallies have occurred but yielded limited gains. The ETFs could become more compelling if market volatility increases toward the midpoint of the fourth quarter of 2025, potentially offering attractive income for risk-tolerant traders. MSTY delivers income exposure tied to MicroStrategy's Bitcoin holdings, increasing sensitivity to Bitcoin turbulence.
Read at 24/7 Wall St.
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