NAV Erosion Calculator
BetaNAV erosion is a lasting fall in a fund's share price while it keeps paying high distributions, which means part of each payout is your own capital coming back. Pick a fund to see its real price path and model what the yield is worth after the decline.
Works for YieldMax, covered-call, and other high-yield ETFs. Decay is fitted to traded NAV, not dividend-adjusted total return.
Your Scenario
Adjustments
Model Assumptions
- •Yield % is fixed on declining NAV. The dollar payout drops each month as NAV erodes, but the yield rate stays constant.
- •Decay is fitted to traded NAV, not dividend-adjusted total return. Distributions already hit the price; they are not subtracted again.
- •No reinvestment. Distributions are taken as cash, not reinvested (no DRIP).
- •Flat tax rate on all distributions. Actual distributions may include ordinary income, short-term gains, and return of capital at different rates.
Select a ticker or enter a share price to see projections.
| Fund | Since | Price change | Per year | Distributions paid | Net per share | TTM yield | Verdict |
|---|---|---|---|---|---|---|---|
| ULTYYieldMax Ultra Option Income Strategy ETF | 2024-02 | -89.4% | -56.6% | $160.80 | -$12.13 | 104.5% | Heavy erosion |
| MSTYYieldMax MSTR Option Income Strategy ETF | 2024-02 | -88.0% | -54.4% | $238.30 | $145.03 | 141.5% | Heavy erosion |
| TSLYYieldMax TSLA Option Income Strategy ETF | 2022-11 | -90.0% | -44.2% | $193.27 | $12.90 | 80.8% | Heavy erosion |
| YMAXYieldMax Universe Fund of Option Income ETFs | 2024-01 | -66.6% | -32.4% | $18.58 | $5.32 | 62.5% | Heavy erosion |
| YMAGYieldMax Magnificent 7 Fund of Option Income ETF | 2024-01 | -48.1% | -21.1% | $18.34 | $8.77 | 49.1% | Heavy erosion |
| QDTERoundhill Nasdaq-100 0DTE Covered Call ETF Strategy ETF | 2024-03 | -44.5% | -19.8% | $35.28 | $14.63 | 47.6% | Heavy erosion |
| XDTERoundhill Investments - S&P 500 0DTE Covered Call Strategy ETF | 2024-03 | -30.4% | -12.7% | $31.99 | $16.03 | 30.4% | Heavy erosion |
| TDAQTappAlpha Innovation 100 Growth & Daily Income ETF | 2025-09 | -4.4% | -3.8% | $4.89 | $3.79 | 18.9% | Mild erosion |
| QYLDGlobal X - Nasdaq 100 Covered Call ETF | 2013-12 | -31.7% | -2.9% | $29.42 | $21.49 | 12.5% | Mild erosion |
| IWMINEOS Russell 2000 High Income ETF | 2024-06 | -3.9% | -1.7% | $17.21 | $15.27 | 15.1% | Price held |
| QQQINEOS Nasdaq-100 High Income ETF | 2024-01 | -0.7% | -0.3% | $20.53 | $20.17 | 15.4% | Price held |
| SPYINeos S&P 500(R) High Income ETF | 2022-08 | +4.4% | +1.0% | $25.21 | $27.37 | 12.3% | Price held |
| JEPQJPMorgan Nasdaq Equity Premium Income ETF | 2022-05 | +6.4% | +1.4% | $26.24 | $29.49 | 12.8% | Price held |
| JEPIJPMorgan Equity Premium Income ETF | 2020-05 | +13.0% | +1.9% | $31.07 | $37.57 | 8.1% | Price held |
| CHPYYieldMax Semiconductor Portfolio Option Income ETF | 2025-04 | +7.5% | +4.6% | $40.33 | $43.75 | 57.2% | Price held |
Closing prices adjusted for share splits, not for dividends. Net per share is the price change plus every distribution paid, with nothing reinvested and before tax. More funds are added each week.
What is NAV erosion?
NAV erosion is a lasting decline in a fund's net asset value, and so its share price, while it keeps paying distributions. When the payout outruns what the fund earns from its holdings and option premiums, the difference comes out of the asset base, so part of each distribution is your own capital coming back.
Do all covered-call ETFs erode NAV?
No. Funds that keep most of the upside of their index, such as JEPI and QQQI, have held their share price. Funds that sell calls on single volatile stocks and pay out everything they collect, such as most YieldMax funds, have lost most of their share price. Check the fund's own path in the table above rather than the category.
How do I check NAV erosion for a specific ETF?
Open the fund's page from the table above, or pick a ticker in the calculator. Each fund page compares the share price with the price plus every distribution paid, year by year, so you can see whether the payouts covered the decline.
Is NAV erosion the same as a bad total return?
Not always. A fund can erode NAV and still beat a bank account once distributions are counted, if the payouts exceed the price loss. But erosion shrinks the base that future payouts come from, so the dollar distributions fall over time even when the quoted yield stays high.
Does NAV erosion matter in an IRA?
Less than in a taxable account. Return-of-capital distributions lower your cost basis and are taxed when you sell in a taxable account; in an IRA there is no tax event, so the only question is whether the payouts beat the price decline.
NAV erosion occurs when a fund's share price declines over time, even as it pays large distributions. This is common in covered-call ETFs and YieldMax-style option income funds that sacrifice capital appreciation for high current income.
Related: Covered call ETFs · YieldMax ETFs · Highest yield ETFs · Compare dividend returns
The Illusion of High Yield
A 60% yield sounds incredible — but if the share price drops 40% in the same year, you're only marginally ahead before taxes. After taxes at ordinary income rates, you may actually be losing money.
Return of Capital vs. Return on Capital
Much of what these funds distribute is return of capital — they're giving you back your own money while the underlying asset loses value.
Two Competing Forces
The green line shows cumulative after-tax income. The red line shows cumulative capital loss. Where they cross is where you start losing money overall.
Tax Matters — A Lot
YieldMax payouts are often ordinary income or return of capital. Covered-call funds like QQQI are usually not taxed the same way. The default here is 24%, not a 37% top-bracket rate — change it to match your situation.
The Declining Dollar Payout
As NAV declines, the dollar amount of each distribution also drops. A "60% yield" on $50 pays $30/yr; that same 60% on $25 pays only $15/yr.
Use Real NAV, Not Total Return
Selecting a ticker loads live price and yield, then fits decay to traded NAV over the trailing 12 months (inception if the fund is newer). Dividend-adjusted prices are ignored — those hide the erosion this tool is built to show.
Important Disclaimer
This tool is for educational purposes only. Projections use simplified assumptions (constant yield, steady decay) that may not reflect actual fund performance. YieldMax distributions vary dramatically month to month. This is not investment advice.
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