YieldMax MSTY ETF loses 67% in a year, payouts collapse, and tax inefficiencies hit investors hard.

YieldMax MSTR Option Income Strategy ETF (MSTY) has seen its share price drop 67.45% over the past year, while its weekly distributions have fallen sharply from $4.42 to just $0.22. Investors face high fees of 1.03% annually and significant tax inefficiencies, as most payouts are taxed as ordinary income despite the fund's declining value. MSTY's portfolio is concentrated entirely in MicroStrategy stock, which has fallen 74.13%, limiting upside due to covered calls and causing a shrinking principal. A more stable and cheaper alternative is JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), which offers diversified exposure with lower fees and tax costs. Investors should consider the real after-tax return and risk before holding MSTY.