Summary of "I Invested $8,000 into MSTY ETF - Here's My Total Return"

Summary of [MSTY](https://www.amazon.com/dp/B08TQHTM9L?tag=dtdgstoreid08-20) (MicroStrategy Synthetic Covered Call ETF) Investment

Overview

ETF Discussed: [MSTY](https://www.amazon.com/dp/B08TQHTM9L?tag=dtdgstoreid08-20) (MicroStrategy Synthetic Covered Call ETF)
Investment Amount: $8,000 invested, with an average cost of around $27 per share
Current Price Range: Trading between $20 and $25 per share; historically volatile between approximately $19 and $40

Performance and Returns

Total Return:
- Currently showing a -12.52% total return (about $1,000 loss)
- Loss offset by high dividend income
Year-to-Date (YTD) Return: Approximately 32.55%, outperforming the S&P 500 (~14%)
1-Year Total Return: Close to 98%, significantly beating the S&P 500 (~13-14%)
Return Assumptions: Returns assume dividends are reinvested; without reinvestment, returns are lower but still outperform benchmarks

Dividends

[MSTY](https://www.amazon.com/dp/B08TQHTM9L?tag=dtdgstoreid08-20) pays monthly dividends with an extremely high dividend yield advertised at around 134-135% (per YieldMax website)
Dividend payouts fluctuate between $1 and $4 per share monthly, with a conservative estimate of at least $1 per share
Example scenario:
- Holding 100 shares (~$2,300) yields about $100/month ($1,200 annually) at $1/share dividend
- Potentially $200/month ($2,400 annually) at $2/share dividend
Over 6 months, dividends received totaled approximately $2,186, more than compensating for the negative price return

ETF Structure and Strategy

[MSTY](https://www.amazon.com/dp/B08TQHTM9L?tag=dtdgstoreid08-20) is a single-stock ETF with exposure to MicroStrategy (MSTR) via a synthetic covered call strategy
Does not hold MSTR shares directly; instead uses call and short call options combined with treasury bills
This structure leads to high risk and volatility due to single-stock exposure and option strategies

Investment Strategy

Dividends from MSTY are not reinvested back into MSTY but used to invest in other ETFs, including:
- Q (likely QQQ, Nasdaq 100 ETF)
- SPY (S&P 500 ETF)
- QQQI (Invesco NASDAQ 100 ETF with monthly dividends)
- YAX and XDTE (weekly dividend ETFs)
Plans to add more [MSTY](https://www.amazon.com/dp/B08TQHTM9L?tag=dtdgstoreid08-20) shares if the price drops to the low $20s
Long-term goal to hold 1,000 [MSTY](https://www.amazon.com/dp/B08TQHTM9L?tag=dtdgstoreid08-20) shares while maintaining portfolio diversification

Risk Management

Acknowledges [MSTY](https://www.amazon.com/dp/B08TQHTM9L?tag=dtdgstoreid08-20)’s high volatility and risk due to single-stock exposure and synthetic covered call structure
Emphasizes the importance of diversification, especially alongside more stable income ETFs like SCHD

Additional Notes

[MSTY](https://www.amazon.com/dp/B08TQHTM9L?tag=dtdgstoreid08-20) offers a unique income opportunity with high monthly dividends, unlike traditional ETFs
Suggests the potential to recoup the initial investment within a year via dividends alone
Possible strategy includes selling half the initial position after dividends have recouped the cost basis, then letting dividends compound

Disclaimers

This summary reflects a personal investment review and analysis, not financial advice. Investors should be aware of the risks associated with single-stock exposure and synthetic option strategies.

Tickers and Assets Mentioned

MSTY: MicroStrategy Synthetic Covered Call ETF
MSTR: MicroStrategy (underlying exposure via options)
SCHD: Schwab U.S. Dividend Equity ETF
Q: Likely QQQ, Nasdaq 100 ETF
SPY: S&P 500 ETF
QQQI: Invesco NASDAQ 100 ETF with monthly dividends
YAX, XDTE: Weekly dividend ETFs

Presenter/Source

An unnamed individual investor sharing personal experience and analysis of [MSTY](https://www.amazon.com/dp/B08TQHTM9L?tag=dtdgstoreid08-20) ETF investment and dividend strategy.