๐จ High Yield,(-ve) Returns: 3 Single-Stock Income
I looked at the 1-year total return performance of these high-income single-stock ETFs, and this is another reminder that yield alone can be misleading.
๐ SHPE: -9.77% 1Y total return | 28.49% yield
๐ TSLY: -9.07% | 29.13% yield
๐ METE: -6.65% | 18.20% yield
These ETFs are designed to generate significant income from individual stocks like Shopify, Tesla and Meta, but over this 1-year comparison, all 3 produced negative total returns despite their high distributions.
๐ก My takeaway: Getting a 20โ30% yield feels great, but what matters is how much money you actually have after distributions AND price/NAV movement.
Income is only half the story. Total return matters.
Would you still hold these for the monthly cash flow? ๐