Update on my YieldMax Portfolio. Income is Crashing!

In this video we are talking about Yieldmax ETF's, specifically the YieldMax Test Portfolio that I am running to create monthly income of $184.29 to pay for a monthly expense. The question becomes did I choose the right YieldMax ETF's OR should I have just plowed all the money into YMAX or YMAG instead.
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Need a GREAT Dividend Tracker for your portfolio? Here is what I use and it is EXCELLENT:
The Dividend Tracker: https://thedividendtracker.com/?ref=l...
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This communication/content is for informational purposes only and is not intended as personalized investment advice, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon for purposes of transacting in securities or other investment vehicles.
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YieldMax ETFs employ an options-based strategy to generate high dividend yields, currently averaging 56.25% across their 45 funds. These ETFs sell call options on major stocks like Tesla (TSLY), NVIDIA (NVDY), and MicroStrategy (MSTY) to create monthly income, distributing premiums as dividends to shareholders.

YMAX vs. YMAG ETF Comparison

YMAX: Invests in 29 YieldMax ETFs across various sectors, employing a diversified "fund-of-funds" approach with synthetic covered calls and monthly rebalancing.

YMAG: Concentrates on Magnificent 7 tech stocks (e.g., Apple, Microsoft) using a covered call strategy, limiting upside during bullish periods.

Yield Drivers: YMAX’s higher yield (up to 67.60% distribution rate) stems from diversified options strategies, while YMAG’s lower yield reflects its focus on capped-growth tech stocks.

YMAX: Income-focused investors prioritizing yield over capital preservation, comfortable with multi-sector NAV volatility.

YMAG: Those seeking tech exposure with moderate yield and slightly better risk-adjusted returns (higher Sharpe ratio).

The best way to use YieldMax ETFs depends on your investment goals, risk tolerance, and portfolio strategy. These ETFs are designed to generate high monthly income by selling options on volatile stocks or sectors, but they come with significant risks, including potential erosion of net asset value (NAV) over time. Below are strategies to optimize their use:

YieldMax ETFs should be treated as a small, speculative slice of your portfolio due to their high-risk nature. Allocate 5–15% of your portfolio to these funds, ensuring the majority of your investments are in stable, growth-oriented assets like index funds or dividend-growth stocks.

YieldMax ETFs are ideal for income-focused investors who prioritize monthly cash flow over capital appreciation. Their high distribution yields (often exceeding 50% annually) can supplement retirement income or fund monthly expenses. However, avoid relying on them as core holdings due to their NAV erosion risks.

3. Diversify Across Funds
Single-Stock ETFs: Funds like TSLY (Tesla) or NVDY (NVIDIA) offer exposure to individual stocks but carry concentrated risk.

Diversified Funds: YMAX, a "fund-of-funds," invests in multiple YieldMax ETFs for broader sector exposure, reducing idiosyncratic risks.

4. Timing and Volatility Management
Deploy capital during periods of high implied volatility (e.g., earnings seasons) when option premiums—and thus yields—are higher. Avoid investing during low-volatility periods, as distributions may drop significantly.

5. Tax Optimization
Hold YieldMax ETFs in tax-advantaged accounts (e.g., IRAs) to defer taxes on distributions, which may include return-of-capital components. This strategy minimizes the tax impact while allowing reinvestment of dividends for compounding returns.

7. Pair with Growth Assets
Offset the risks of NAV erosion by pairing YieldMax ETFs with growth-oriented investments like index funds (e.g., VOO or VTI). This ensures your broader portfolio remains intact even if YieldMax funds underperform.