WHY CAN'T ULTY'S NAV GO UP?

Описание: I received this feedback during the live premiere: "ULTY's NAV won't go up because the upside is totally capped." Don't forget QQQI's upside is totally capped also. Most of these ETFs are totally capped; it is the way covered call strategies work. The difference between ULTY and QQQI is one pays 90 percent and one pays 14 percent. QQQI or JEPI have less of a headwind because they pay less, and therefore their underlyings do not have to be up as much to overcome the yield. ULTY was up for 6 months this summer at the same time their underlying basket of stocks was up 120 percent (annualized). It is a true statement to say ULTY's upside is capped, but so are all of them. The ones that pay a lower yield have better NAV performance every time. It is just math. 90 percent of a high-yield ETF's NAV performance is explained by the amount of the dividend. If ULTY cut their payment to 14 percent just like QQQI, ULTY's NAV would do about as well as QQQI - most likely ULTY would do even better, but it would be close.

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