Terrifying Dividend Yields! BITO, CONY, MSTY

 

1. Introduction

Hello, this is Dodo Junnyang, a dad aspiring to become wealthy. 

 Today, I’ll introduce ETFs with remarkable dividend yields. Even in the event of losses, the dividends could potentially offset them. If the value rises, you might see approximately double the profit. Moreover, if you combine all three ETFs, you could achieve nearly six times the asset growth. However, this is only possible with successful investments. 

To learn more, I decided to study these ETFs: BITO, CONY, and MSTY.

2. BITO(ProShares Bitcoin Strategy ETF)

BITO is an ETF that invests in Bitcoin price movements through Bitcoin futures contracts without directly holding Bitcoin. It was launched in 2021 as the first Bitcoin futures ETF in the U.S. BITO offers investors indirect exposure to Bitcoin, avoiding the regulatory and technical complexities of direct ownership. However, it is highly influenced by Bitcoin's price volatility. 

Investment Indicators 

• Market Cap: $1.5 billion 
• Dividend Yield: 63.77% 
• Assets Under Management (AUM): $1.5 billion 
• Discount Rate: -4.6% 
• Expense Ratio (Annual): 0.95% 

Dividend Information 

• Number of Distributions: 12 
• Dividend per Share: $9.87 annually Dividend Yield: 63.77% annually 

Composition 

• U.S. Treasury 0% (Maturity: Aug 8, 2024): 62.2% 
• Repo General Security: 55.4% 
• Bitcoin Futures: 28.6%

3. CONY (YieldMax COIN Option Income Strategy ETF)

CONY is a strategic ETF that generates income through option premiums based on Coinbase (Ticker: COIN) stock. It employs a call-writing strategy to capture option premiums, offering regular cash flow. However, its performance is tied to Coinbase stock price movements. 

Investment Indicators 

• Market Cap: $561 million 
• Dividend Yield: 181.43% AUM: $570 million 
• Discount Rate: -16.8% 
• Expense Ratio (Annual): 1.0% 

Dividend Information 

• Number of Distributions: 12 
• Dividend per Share: $20.36 annually 
• Dividend Yield: 181.43% annually 

Composition 

• U.S. Treasury 2.625% (Maturity: Apr 15, 2025): 28.0% 
• U.S. Treasury 0.75% (Maturity: Nov 15, 2025): 27.6% 
• U.S. Treasury 2% (Maturity: Jan 15, 2026): 27.1% 
• U.S. Treasury 3% (Maturity: Jul 15, 2025): 27.1% 
• COIN Aug4 250.0C: 2.7%

4. MSTY (YieldMax MSTR Option Income Strategy ETF)

MSTY is an ETF based on MicroStrategy (Ticker: MSTR), a company heavily invested in Bitcoin. It uses a call-writing strategy to generate regular cash flow, leveraging the volatility of MicroStrategy stock to earn option premiums. 

Investment Indicators 

• Market Cap: $446 million
• Dividend Yield: 82.9% 
• AUM: $456 million 
• Discount Rate: -14.3% 
• Expense Ratio (Annual): 0.99% 

Dividend Information

• Number of Distributions: 6 
• Dividend per Share: $15.14 annually 
• Dividend Yield: 82.9% annually 

Composition

• Others: 94.3% 
• MSTR Aug4 1550C: 8.9%

5. Conclusion

Investing about 1% of your portfolio in high-risk, high-return assets could be a valuable experience. I hope this information is helpful to you. Thank you for reading, and I’ll see you in the next post.