#high-yield

#high-yield

Midstream energy stocks are the companies involved in the processing, transportation, and storage of crude oil, natural gas, and natural gas liquids. These companies operate in the "midstream" sector, which falls between the upstream (exploration and production) and downstream (refining and marketing) sectors of the energy industry. They are far less susceptible to spot benchmark pricing moves, as most sector leaders have locked in contracts for their services, some of which run for years.

The disappointing August employment report showed that only 22,000 jobs were created. The number was well below estimates of 75,000, and it almost assures that the Federal Reserve will lower interest rates on September 17th for the first time since last December. It is also likely that the fed funds rate will be significantly lower than today's effective federal funds rate of 4.33%,

The YieldMax Magnificent 7 Fund of Option Income ETFs (YMAG) seeks to generate extra income from stocks known as the Magnificent Seven, aiming for a high distribution rate.

The YieldMax Ultra Option Income Strategy ETF (ULTY) currently boasts an annual yield of 84.23%, but investors should be cautious due to its lack of diversification and fluctuating yields.

However, a surprising trend has emerged in 2025: these ETFs' net asset value (NAV) are increasing, defying the usual expectation of steady decline that is typical of their high-yield, high-risk design.

The YieldMax AMZN Option Income Strategy ETF (AMZY) attracts income-focused investors with its high yield but may underperform compared to actual Amazon stock.