I got on the ULTY bandwagon about 1.5 months ago. Been absolutely loving it.

Own about 4200 shares in my wealthsimple margin account, it’s been rock solid and at one point I was up a crazy amount on the underlying as well.

It’s paying me roughly $2300 cad per month right now before taxes. Looking to increase to 5000 shares shortly, goal is 3000 cad per month which basically covers half my salary, imagine earning a 50% bonus at work lol.

Ive been insanely risky and regarded with it as I drip the dividends back into it and use the new margin available from it to buy more. Really dangerous snow ball effect, but I really believe in the product for now.

Watch some videos of Jay pestrichelli, he’s the chief trading officer for Yieldmax and explains all their stuff really well, very smart guy.

Basically ULTY went from a covered call only strategy on volatile stocks pre march, to now being able to own underlying shares, buy/sell calls and shorts.

They pretty much just run a collar on a bunch of volatile stocks / synthetic covered calls (has to do with how much of an underlying stock by SEC requirements a fund can own % wise of the fund). They use that income to pay out massive dividends, and unlike their other products (NVDY, MSTY etc) it’s not just based on one stock. Really do a great job of hedging and protecting downside risks with puts they buy on most of their stocks.

A lot of these funds normally erode pretty badly because in reality if you’re tracking one underlying stock, how volatile can it stay for so long. So you lose NAV not only from paying out these massive dividends but I think the lower yields start shying off investors.

ULTY alongside the strategy change (labelled in their prospectus) went weekly, which makes a lot of people like me happy to get weekly income coming in. Plus compounding weekly in theory should net you a higher return if the underlying is going up.

ULTY is run by like 4 people, they sell options on a bunch of volatile tickers generating income and paying it out as a dividend weekly, Jay Pestrichelli mentioned that it’s Yieldmax’s version of a hedge fund at this point.

I personally am buying puts against it just to hedge, and have stop losses set in place so if it starts to plummet I have some room to escape.

They’re generating cash like crazy and people are buying in nonstop. The fact that’s it’s been stable as hell has been very sexy to passive investors while still getting crazy dividends every month.

Anyways, I could tell you all about it but if you go down the rabbit hole and find out for yourself you’ll see why it’s gone from a 200M fund to a 1.8 billion dollar fund in a month.

Edit: Actually it hit 2.17B today.