Part 8/12:
To prevent their ETFs from trading below $1—a common risk when share prices fall—YieldMax has resorted to reverse splits, often at ratios of 1-for-5 or 1-for-10. Disconcertingly, about 25% of their ETFs have undergone such splits in just the past two months. While these splits prevent the funds from being delisted, they also serve as a warning sign of the underlying instability.
Scrutiny and Regulatory Action
Adding to the woes, regulatory bodies have begun scrutinizing YieldMax and similar fund providers. An investigative piece by ETF.com highlighted that these funds face performance issues in all market conditions, with some labeling their distribution strategies as "illusory."