Stupid question time on the concept of these option income ETFs. While I'm nominally familiar with MSTY, I haven't really done a deep dive but what am I missing? It appears to me that you would be better off just investing in MSTR, or at least that has been the case since the inception of MSTY...
While the chart above doesn't specifically indicate whether it is showing MSTY dividend reinvestment, I believe it does as I found a separate charting tool that specifically claims to factor in dividend reinvestment, and it provides very similar returns for $10K invested starting 2/22/24.
I understand that one major difference between the two investments is the monthly income generation that MSTY provides and MSTR does not (assuming you dont take profits by selling some). But it seems a strategy of holding MSTR and selling after a year would provide far better returns, especially when you consider that you will be paying tax on your MSTY dividend payouts according to your tax rate, rather than lower long-term capital gains rate on MSTR if you hold a year.
I spot checked a couple of other ETFs (TSLY/TSLA, NVDY/NVDA) and in both cases the underlying outperformed the ETF fairly significantly. Is the theory that these option income ETFs will out perform the underlying stock in periods of down years?
Here's the sites I used to generate the returns
https://portfolioslab.com/tools/stock-comparison/MSTY/MSTR
https://totalrealreturns.com/s/MSTY,MSTR