**YMAG Vs. MAGY: Both Have Unique Benefits, But One Is The Better Long-Term Hold**
Cain Lee
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**YMAG’s synthetic structure leads to higher volatility and NAV decline, while Roundhill’s MAGY provides more price stability and consistent payouts through direct equity exposure.**
YMAG outperformed MAGY in recent total returns, but its strategy limits upside participation and risks greater NAV erosion over time. MAGY may be a better long-term choice for investors seeking stability and consistent income, while YMAG suits those prioritizing high yield during market rallies.
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### Overview
YieldMax Magnificent 7 Fund of Option Income ETFs (YMAG) offers indirect exposure to the Mag 7 companies while deploying an option writing strategy to deliver amplified levels of income.
When I previously covered YMAG, I issued a buy rating for the fund based on its high yield potential and unique income-generating approach.
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### About the Author
With over 15 years of experience in investing, I am a financial analyst by day and a seasoned investor by passion. I specialize in uncovering high-quality dividend stocks and other assets that offer potential for long-term growth while delivering strong income to cover living expenses.
I believe in building a solid base of classic dividend growth stocks, complemented by investments in Business Development Companies (BDCs), REITs, and Closed-End Funds (CEFs). This hybrid approach efficiently boosts investment income while maintaining total returns comparable to traditional index funds like the S&P 500.
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### Analyst’s Disclosure
I hold a beneficial long position in the shares of YMAG, either through stock ownership, options, or other derivatives. This article expresses my own opinions and I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned here.
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### Seeking Alpha Disclaimer
Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Views or opinions expressed above may not reflect those of Seeking Alpha as a whole.
Seeking Alpha is not a licensed securities dealer, broker, or US investment adviser or investment bank. Our analysts are third-party authors including both professional and individual investors who may not be licensed or certified by any regulatory body.
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