APLY: Printing Income From Apple Exposure Comes At A Cost
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YieldMax AAPL Option Income Strategy ETF (APLY) offers high dividend yields but faces challenges such as NAV erosion and underperformance compared to peers. Its strategy limits upside potential, making it more suitable for income in a sideways market rather than capital appreciation.
November 22, 2024 | 2:45 pm
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YieldMax AAPL Option Income Strategy ETF (APLY) offers high dividend yields but suffers from NAV erosion and underperformance. Its strategy limits upside potential, making it more suitable for income in a sideways market.
APLY's synthetic covered call strategy limits upside potential, leading to NAV erosion and underperformance compared to peers. This makes it less suitable for capital appreciation and more for generating income in a sideways market. The fund's inability to generate enough earnings to support distributions further contributes to NAV decay.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100