Opportunity Details and FAQs

High Yield ETFs

How to Start:

Go to your stock broker of choice (Fidelty, Schwab, E-Trade, etc.) and invest.

Description:

This is not one specific investment. It is a category of ETFs that are available. However, they do not often appear in searches. Most of these make distributions of 30-60% per year, but do not appear in searches for highest-dividend ETFs.
There are two or three key “families” that offer several of these High-Yield ETFs. They all pay out at least quarterly, but most pay out monthly and a few even pay out weekly.
Therefore, these can be a great source of passive cash flow.
The minimum investment is very small because it is based on the price of one share of an ETF and could be as low as $10 or so.

Return:

Each ETF is different and this type of ETF was first created in late 2023, so they are still fairly new.

• Expected Return: Based on results so far, most of these ETFs have been pahing out 30-60% per year.
• Time Period: The payouts start right away. Most funds pay out monthly, but a few pay out weekly. There is no minimum holding period nor any expected end date.

Risk:

Every investment has risks. Here are key factors to consider:

• Decline of NAV (Net Asset Value):
  
  • The downside is that several of these have shown a tendency to have a decreasing Net Asset Value. For example, you could invest $10,000 into one of these and get payouts of $3,000 to $6,000 (30-60%) over the next year. However, that $10,000 invested could become worth $8,000 or $9,000. This is just a hypothetical example so you understand a potential risk.
  • Several of these ETFs made changes to their structure in late 2024 and that seems to have “fixed” some of the NAV erosion issues.

*This is not a comprehensive list of risks but highlights potential challenges to achieving expected results.

Liquidity:

• These funds are 100% liquid at any time.
• The payouts are made weekly or monthly. You can choose to have the payouts remain as cash in your account (if you want to use it as income) or to have the payouts reinvested in additional shares of the ETF.

Tax Consequences:

• These are taxed as any other ETF or mutual funds.
  Distributed gains are taxed as income.
  When you sell the ETF, you will have a capital gain or capital loss.

Fit in Portfolio:

These funds provide:

What the Process Looks Like:

Time Commitment:

Due Diligence on the Business:

Below are the “families” that offer this type of ETF and some of our favorites within each family. These are not recommendations…just information.

YieldMax ETFs
You can use that link to go to their website and see their entire portfolio of high-yield ETFs. They have the biggest volume and variety of High-Yield ETFs to choose from. Some of our favorites include:
NVDY: Fund using Nvidia stock options to generate cash flow
MSTY: Fund using MicroStrategies stock options to generate cash flow
YMAX: Fund using a variety of stock options to generate cash flow

RoundHill ETFs
You can use that link to go to their website and see their entire portfolio of high-yield ETFs. They have a large, diverse selection of High-Yield ETFs to choose from. Some of our favorites include:
QDTE: Fund using tech stock options to generate cash flow
XDTE: Fund using S&P 500 Index stock options to generate cash flow

Defiance ETFs
You can use that link to go to their website. They divide their ETFs info categories and the High-Yield ETFs are in the “Income ETFs” category. Some of our favorites from them include:
QQQY: Fund using the NADSAQ 100 index stock options to generate cash flow
IWMY: Fund using the Russell 2000 index stock options to generate cash flow

Results:

Several members of Unbroken Investing have invested in these funds over the past year.

✅ First of all, all results of each fund are 100% transparent and can be researched in your brokerage account or other public resources (such as Yahoo Finance).
✅ For those who started in early 2024, we experienced the payouts, but saw significant decreases in our NAV. Those decreases seem to have leveled off after the ETFs made some structure changes in late 2024.