Investing.com • Brett Owens This Dividend With 68% Returns Is the Worst Gift You Could Get This Christmas
12/23/2025 08:34 AM • The YieldMax Ultra Income Strategy ETF (ULTY) offers a seemingly attractive 68% yield, but investors should avoid it. Despite the high dividend payout, the fund's share price has dropped 80% since launch in February 2024, resulting in negative returns even with dividends reinvested. The fund uses a covered call strategy on speculative tech stocks and has shown highly volatile and unpredictable dividend payments, with payouts falling 58% from May to December. Management plans further changes that could make dividends even less predictable.
ULTY - Despite offering a 68% yield, the fund has experienced an 80% price decline since launch, resulting in negative total returns. Dividend payments are highly volatile (58% drop from May to December), and management's planned changes suggest further unpredictability. The covered call strategy caps upside potential in rising markets.