The High Yield Roadmap portfolio has become a tale of two cities: Income focused funds (e.g. FSCO, SPYI, QQQI, IDE, JEPQ) and Precious Metals funds (e.g. PHYS, PSLV, AEM, ASA). And while the price increases of the Precious Metal funds have been good year-to-date, we are unable to bank or withdrawal any of the gains without having to sell a portion. And price variations are always much greater than dividend variations.
Would it be possible to get BOTH dividends, and price gains, from Precious Metals? Maybe so, as there are gold-based ETFs that pay dividends, though it’s important to clarify what “gold-based” means in this context. Pure gold ETFs (those holding physical gold bullion, like PHYS or GLD, do not pay dividends because gold itself generates no income. However, equity-based gold ETFs (which invest in stocks of gold mining, exploration, or royalty companies) or strategy-based ETFs (which use gold futures/options overlays to generate income) do pay dividends or distributions. These can provide exposure to gold prices while offering yield.
These aim for gold exposure through derivatives and generate higher yields via options premiums or other strategies, often paid monthly. These ETFs can hedge against inflation or volatility while providing income, but they carry risks like mining company-specific issues (e.g., operational costs) or derivative volatility.
IAUI
Uses gold ETPs + covered calls for monthly income; ~90% of distributions classified as return of capital. Very new, just began in June 2025. Yield (TTM) is 5%, and YTD price change is +7.6%.
YGLD
150% gold futures exposure + options overlay on various assets; seeks capital gains + income. Very new, just began in December 2024. Yield (TTM) is 3.7%, and YTD price change is +84% (!).
Of these two funds, YGLD has had much better Total Return performance the last six months.
Comparisons
So let’s compare YGLD with other precious metals funds.
Among these select precious metals funds, their one year total returns and trailing twelve month (TTM) dividends were:
But what about risk, and volatility ? PHYS has the lowest standard deviation and drawdown, and the highest Sharpe and Sortino Ratios. (YGLD did not have enough data available to compare).
Conclusions
In spite of last week’s precious metals abrupt price drops, all PM funds reviewed had stellar performance in 2025. In hind sight, ASA had 2x the total return of PHYS. And in spite of the hype of an overdue silver breakout, PSLV has lagged PHYS in returns and risk.
YGLD’s price performance combined with the modest, but greater than zero, 3.7% yield made for a very respectable and competitive total return.
Although the idea of having our cake and eating it too (both price and dividends) is attractive, IAUI and YGLD are both too new to draw any meaningful conclusions. Maybe over time they will prove out. Until then, there are many viable ways to invest in precious metals and enjoy (hopefully) continued high returns.
Best Wishes,
Patient_Zero
Bonus Material
Excerpts from the “LDS Preparedness Manual”, V5.03, January 01, 2011, “Member Edition” regarding possessing physical gold and silver. Although written 14 years ago, the principles seem relevant today.
