The stock market has taken a bit of a tumble over the last several weeks. MSTY has also been affected. It’s important though to look at the big picture when these types of events happen. My goal in this article is to break down the overall performance up to this point and how the drop in the market in recent days has affected the performance of the ETF MSTY. If you’d like to see my original analysis of MSTY which goes into much more detail of this covered call ETF you can read the article here: MSTY Review- High Yield Income Covered Call ETF on MSTR.

Net Asset Value is Down

The stock market overall has dropped a fairly significant amount over the last 4 weeks. Specifically MSTR has dropped in value. If we look at the share price since the beginning of the year on MSTR, it hit a peak of $404.42 on January 21st. The share price has struggled some since then reaching a low of $231.62 on March 10th. It recovered some of it’s loss over the next few days that week and ended at $297.49 on March 14th.

This affects the NAV share price of MSTY also. MSTY hit it’s YTD high on January 6th when it went as high as $31.96. On March 10th it reached a low of $17.88 per share, but ended the week on March 14th at $20.86 a share. When you consider that the price per share when MSTY was first launched on February 21st 2024 was $20 a share and consider the distributions it has paid out since then, the drop doesn’t seem so bad.

Distributions Are Down

As you may have noticed with MSTY, when the price per share is lower, the distribution per share also goes down and vice versa. If we consider all of the distributions paid out on MSTY since inception, the highest distribution was $4.42. The lowest was the most recent distribution paid out this week which was $1.38 per share. The average of all the distributions to date is $2.77 per share. The hope is that the share price will recover sooner or later and the dividend also will go back up.

Overall Return

In my original MSTY analysis, the annualized total return on MSTY since inception was 284.63%. The recent drop in the share price has certainly affected the overall total return, but the return is still at a level that is far above the market in general. Looking at the annualized total return based on the share price from inception to the most recent ex dividend date which was March 13th, the return calculates to be 166.35% when figuring in reinvestment of distributions into more shares. That’s not a return most people would complain about.

Of course your individual return with MSTY will be greatly dependent on what level you bought your original shares at. If you had bought your original shares in the $30 to $40 range, then your annualized return may be in the negative at this point and may take some time for the distributions to bring your overall return up.

And if the share price does make a recovery, it will bring your return up fairly quickly. Even looking at the share price movement from the beginning of the day on March 13th to the end of the day on March 14th, it changed the overall annualized return from 166.35% to 191.23%. So the hope is that the MSTY share price will continue to go up and increase the value of the shares as well as the distributions going forward.

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