A fund shows 30%, 50%, even 80% yield. Your brokerage account fills with monthly distributions. It feels like you are earning incredible income.
But look at your cost basis. Look at the NAV chart. That “income” is often your own capital being returned to you — while the fund's value quietly erodes underneath.
This is a yield trap. And it has cost retail investors billions.
-47%
TSLY NAV decline since launch
-53%
CONY NAV decline since launch
$0
Net gain after NAV erosion
Six chapters of data-driven analysis and practical frameworks you can apply to your portfolio today.
Why high-yield ETFs can destroy wealth even while paying monthly income. The math most investors ignore.
DivAgent's proprietary classification system for ranking income ETFs from core holdings to speculative positions.
How to calculate true total return and spot funds that are paying you back your own money.
Real data analysis of TSLY, CONY, MSTY, and other high-yield ETFs — what happened and why.
A 12-point checklist for evaluating any income ETF before you buy. The framework that separates data from hype.
How to combine ETFs across tiers for sustainable income without excessive NAV risk.
Real data from real funds. These are the patterns the guide teaches you to recognize.
YieldMax TSLA Option Income
Advertised Yield
~60%
NAV Change
-47%
High option premiums masked severe NAV erosion. Investors received large distributions while their principal evaporated.
YieldMax COIN Option Income
Advertised Yield
~80%
NAV Change
-53%
Crypto-linked volatility generated extreme premiums but unsustainable returns. Total return tells the real story.
DivAgent's framework for classifying income ETFs by actual risk — not just yield. The guide explains how to use this for every fund in your portfolio.
Traditional dividend ETFs with stable NAV
Examples: SCHD, VYM, DGRO
Covered call ETFs on broad indices
Examples: JEPI, JEPQ, SPYI
Sector-focused covered call strategies
Examples: XYLD, QYLD, DIVO
Aggressive options strategies with NAV risk
Examples: TSLY, NVDY, CONY
Maximum yield with significant NAV erosion risk
Examples: MSTY, APLY, PLTY
Protect your principal while maintaining income
Free resourceBuild sustainable income for early retirement
Free resourceSeparate sustainable yield from traps
Free resourceThe evidence-based case for income ETFs
Free resourceStart with the right framework from day one
Free resource“I was holding three Tier 5 ETFs and had no idea my NAV was down 40%. This guide paid for itself in one portfolio audit.”
DivAgent Community Member
Retiree, income-focused portfolio
“The due diligence checklist is something I use every single time before buying a new income ETF. Simple but effective.”
DivAgent Premium Subscriber
FIRE investor, $250K portfolio
“Finally, someone who explains yield traps with actual data instead of YouTube hype. The TSLY case study alone was worth the price.”
DivAgent Community Member
Self-directed investor, 5 years experience
Compare: Seeking Alpha Premium — $239/yr. Simply Safe Dividends — $199/yr.
This guide gives you a complete analytical framework for a fraction of the cost.
Financial Disclaimer: The Yield Trap Detector is an educational resource. It does not constitute investment advice, and DivAgent is not a registered investment advisor. Past performance of any fund discussed does not guarantee future results. Always do your own research and consult a qualified financial professional before making investment decisions. All data referenced is believed to be accurate as of the publication date but is not guaranteed.