Why invest on high yield funds?

3 months ago
134

"YieldMax" and "Roundhill" are two distinct ETF providers, each known for different types of exchange-traded funds.
1. YieldMax ETFs:
Focus: YieldMax ETFs specialize in actively managed, options-based income strategies.
Strategy: They primarily aim to generate high monthly income by employing covered call strategies, often on single stocks.
Assets Under Management (AUM): YieldMax has approximately $8.79B in AUM.
Expense Ratios: YieldMax ETFs typically have higher expense ratios, averaging 1.19%, reflecting the active management and options strategies.
2. Roundhill Investments:
Focus: Roundhill Investments offers a broader range of thematic ETFs, including those focused on disruptive technologies and innovative sectors.
Strategy: Roundhill's approach varies, with some ETFs focusing on specific themes like the metaverse, sports betting, or weight loss, while others utilize covered call strategies or leveraged approaches.
Assets Under Management (AUM): Roundhill has around $4.77B in AUM.
Expense Ratios: Roundhill ETFs generally have lower expense ratios compared to YieldMax, averaging 0.75%.

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