From August of 2024 until September of 2026, I have returned about 128% with a 46% yield on cost. How have I been able to use these ultra high yielding instruments so effectively? Read this to find out. https://www.rethinkingdividends.com/p/are-yield-max-etfs-worth-it
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Canadian Investor@canadianinvestor · 42m
This was an interesting read. My thoughts on the whole thing are that beating the S&P 500 shows that the thematic bet worked, but it doesn’t tell us whether the option-income strategy itself added value. To figure that out, we would have to look at what would have happened if, instead of buying the high-yield option-income funds, you had invested the same money at the same times into comparable thematic ETFs that gave you similar exposure to semiconductors, AI, memory, or whatever sector you were targeting, but without the high-distribution option overlay. That is really the comparison that matters. Comparing your results against similar non-high-yield thematic exposure tells us whether the option-income strategy itself actually improved the outcome. If your portfolio returned 128.88%, but a comparable portfolio of non-income thematic ETFs would have returned 170%, then the thematic investment decision was right, but the option-income strategy actually reduced your total return. On the other hand, if those comparable thematic ETFs returned 100% while your strategy returned 128.88%, then the option-income strategy itself added value. Without that comparison, this doesn’t really show that an income strategy added any value. It shows that the thematic picks worked. A person could make the same argument with a single stock. Someone who bought SanDisk around April 2025 at roughly $30–$40 and later watched it trade above $1,600 could say they turned $20,000 into more than $1 million in about a year. An insane return, but it doesn’t prove they had developed a superior growth strategy. Picking the right sectors and dramatically outperforming the S&P 500 is impressive, so congrats on that. However, without comparing the results to a similar portfolio using non-high-yield exposure, it doesn’t really show anyone how much the option-income strategy added, or how much return may have been given up by choosing the high-yield funds.
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