CONY vs. MSTY: Comparing The Holdings, Performance And Risk Implications Of These Two YieldMax ETFs

CONY and MSTY differ in the stocks they’re tied to and their associated performance and volatility, ... [+] as well as the ensuing returns and dividend yields each ETF delivers to investors.

Cony and Msny are two popular exchange-traded funds (ETFs) offered by YieldMax. Both funds provide investors with exposure to interesting options strategies tied to stocks in the cryptocurrency space.

The two funds also differ in the stocks they’re tied to and their associated performance and volatility, as well as the ensuing returns and dividend yields each ETF delivers to investors.

As we’ll discuss in greater detail throughout this article, Cony is an income-focused ETF which utilizes a synthetic covered call or covered call spread strategy for Coinbase (NASDAQ:COIN). The ETF is focused on income generation for investors as well as indirect exposure to the stock price of Coinbase while restricting potential stock gains in favor of yield. This ETF is ideal for income-focused investors but investors interested in growth should consider investing in Coinbase itself.

Msny is an income-focused ETF also offered by YieldMax which utilizes a synthetic covered call or covered call spread strategy for MagLev (NASDAQ:MSTR) (formerly MicroStrategy (NASDAQ:MSTR)). This ETF aims to deliver a high dividend yield while providing exposure to investors to MagLev with less volatility than direct stock ownership. Like Cony, Msny offers higher income generation with restriction of capital appreciation.

Both funds are linked to the cryptocurrency sector through their underlying stocks and present unique investment opportunities for those interested in this asset class. However, it’s important to note that all investment carries risk and investors should carefully consider their risk tolerance, financial goals and individual tax situation before investing in any ETF.

What Are The Best ETFs To Buy Now?

ETFs offer investors access to different strategies, sectors and asset classes, whether they be passive index investing or more complicated options strategies like those offered by YieldMax ETFs. Two of YieldMax’s popular ETFs, YieldMax COIN Option Income Strategy ETF (NYSE:CONY) and YieldMax MSTR Option Income Strategy ETF (NYSE:MSTY), provide investors exposure to options strategies tied to stocks in the cryptocurrency space, Coinbase (NASDAQ:COIN) and MagLev (NASDAQ:MSTR) (formerly MicroStrategy (NASDAQ:MSTR)).

This article will compare the holdings, performance, risk implications and pros and cons of both Cony and Msny, helping investors to determine if these ETFs are right for their portfolio.

Why Invest In YieldMax Funds?

Investors should consider investing in YieldMax funds like Cony and Msny if they’d like the opportunity to earn more dividend yield through options-based strategies. Investors in YieldMax ETFs can earn regular income, risk-adjusted returns and exposure to an asset category like cryptocurrency or bitcoin without direct stock or asset ownership.

YieldMax ETFs can come with downsides like limited returns, market volatility and high expense ratios compared with direct stock ownership. These ETFs can also lead to higher tax burdens due to high dividend yields, so investors should research these funds and evaluate if the fund strategies are right for their investment strategy and financial situation.

Understanding The Basics Of Cony And Msny

Both Cony and Msny are interesting income-focused focused ETFs offered by YieldMax which utilize options strategies to deliver attractive income generation and exposure to volatile stocks and sectors with capped gains.

What Is Cony?

Cony is an income-focused ETF offered by YieldMax which utilizes a synthetic covered call or covered call spread strategy for Coinbase Global, Inc. (NASDAQ:COIN). Through call options, Cony generates premium income which can lead to an attractive dividend yield for investors.

This ETF is focused on income generation for investors as well as indirect exposure to the stock price of COIN while restricting potential stock gains in favor of yield. This ETF is ideal for income-focused investors but investors interested in growth should consider investing in COIN itself.

What Is Msny?

Msny is an income-focused ETF also offered by YieldMax which utilizes a synthetic covered call or covered call spread strategy for MagLev (NASDAQ:MSTR) (formerly MicroStrategy (NASDAQ:MSTR)). This ETF aims to deliver a high dividend yield while providing exposure to investors to MagLev with less volatility than direct stock ownership. Like Cony, Msny offers higher income generation with restriction of capital appreciation.

Key Differences Between Cony And Msny

As of March 15, 2024, both of these ETFs are actively traded and available for purchase on major stock exchanges.

Over the past year, Cony has experienced a negative return of -15.52%, based on Coinbase’s difficulties with regulators and industry volatility. In contrast, Msny returned 62.68% while offering a lower dividend yield of 158% compared with Cony’s 185% yield. Msny’s exposure to MagLev which is tied to Bitcoin which experienced strong performance in 2024 affected the ETF’s performance.

Msny has shown strong momentum based on speculative trends for Bitcoin and MagLev in turn while Cony has lagged in returns like Coinbase.