YieldMax™ announced the launch today of the YieldMax™ Ultra Option
Income Strategy ETF (NYSE Arca: ULTY).
ULTY Overview
ULTY is an actively managed ETF that seeks to generate monthly
income from a portfolio of covered call strategies, each on a U.S.
listed security (the “Underlying Security/ies”). ULTY also provides
direct or indirect exposure to the share price returns of the
Underlying Securities, subject to a limit on potential investment
gains for each such security.
ULTY Portfolio Construction
ULTY’s investment sub-adviser, ZEGA Financial LLC, will
typically select between 15 and 30 Underlying Securities, primarily
on the basis of such securities’ implied volatility levels. Higher
implied volatility usually correlates with increased options
premiums, aligning with ULTY’s aim of generating monthly income
from its portfolio of covered call strategies.
ZEGA will regularly review ULTY’s portfolio to determine whether
one or more of its covered call strategies should be increased,
decreased or eliminated, and whether any such strategy should be
implemented on any new Underlying Securities.
Why Invest in ULTY?
- ULTY seeks to
generate current monthly income from a portfolio of covered call
strategies, each on an Underlying Security.
- ULTY seeks to participate in a
portion of the gains, if any, experienced by each Underlying
Security.
ULTY is the newest member of the YieldMax™ ETF
family and, like all YieldMax™ ETFs, aims to deliver monthly income
to investors. Please see table below for distribution and yield
information for all outstanding YieldMax™ ETFs.
ETF Ticker1 |
ETF Name |
Reference Asset |
Distribution
Rate2,4 |
30-Day SEC Yield3 |
TSLY |
YieldMax™ TSLA Option Income Strategy ETF |
TSLA |
51.69 |
% |
5.15 |
% |
OARK |
YieldMax™ Innovation Option Income Strategy ETF |
ARKK |
34.42 |
% |
4.27 |
% |
APLY |
YieldMax™ AAPL Option Income Strategy ETF |
AAPL |
11.41 |
% |
4.09 |
% |
NVDY |
YieldMax™ NVDA Option Income Strategy ETF |
NVDA |
64.21 |
% |
3.63 |
% |
AMZY |
YieldMax™ AMZN Option Income Strategy ETF |
AMZN |
35.77 |
% |
4.03 |
% |
FBY |
YieldMax™ META Option Income Strategy ETF |
META |
60.66 |
% |
3.70 |
% |
GOOY |
YieldMax™ GOOGL Option Income Strategy ETF |
GOOGL |
30.89 |
% |
4.11 |
% |
NFLY |
YieldMax™ NFLX Option Income Strategy ETF |
NFLX |
80.02 |
% |
3.55 |
% |
CONY |
YieldMax™ COIN Option Income Strategy ETF |
COIN |
53.76 |
% |
4.74 |
% |
MSFO |
YieldMax™ MSFT Option Income Strategy ETF |
MSFT |
36.49 |
% |
3.76 |
% |
DISO |
YieldMax™ DIS Option Income Strategy ETF |
DIS |
16.66 |
% |
3.71 |
% |
XOMO |
YieldMax™ XOM Option Income Strategy ETF |
XOM |
15.17 |
% |
3.94 |
% |
JPMO |
YieldMax™ JPM Option Income Strategy ETF |
JPM |
13.55 |
% |
3.66 |
% |
AMDY |
YieldMax™ AMD Option Income Strategy ETF |
AMD |
89.89 |
% |
3.86 |
% |
PYPY |
YieldMax™ PYPL Option Income Strategy ETF |
PYPL |
42.60 |
% |
3.92 |
% |
SQY |
YieldMax™ SQ Option Income Strategy ETF |
SQ |
19.52 |
% |
4.35 |
% |
MRNY |
YieldMax™ MRNA Option Income Strategy ETF |
MRNA |
35.00 |
% |
3.78 |
% |
AIYY |
YieldMax™ AI Option Income Strategy ETF |
AI |
27.50 |
% |
4.01 |
% |
MSTY* |
YieldMax™ MSTR Option Income Strategy ETF |
MSTR |
- |
|
- |
|
YMAX* |
YieldMax™ Universe Fund of Option Income ETFs |
Multiple |
- |
|
- |
|
YMAG* |
YieldMax™ Magnificent 7 Fund of Option Income ETFs |
Multiple |
- |
|
- |
|
* The inception date for MSTY is February 21, 2024. The
inception date for YMAX is January 16, 2024. The inception date for
YMAG is January 29, 2024.
1 All YieldMax™ ETFs shown in the table above (except YMAX and
YMAG) have a gross expense ratio of 0.99%. YMAX and YMAG have a
Management Fee of 0.29% and Acquired Fund Fees and Expenses of
0.99% for a gross expense ratio of 1.28%. “Acquired Fund Fees and
Expenses” are indirect fees and expenses that the Fund incurs from
investing in the shares of other investment companies, namely other
YieldMax™ ETFs.
2 The Distribution Rate shown is as of close on February 28,
2024. The Distribution Rate is the annual yield an investor would
receive if the most recently declared distribution, which
includes option income, remained the same going forward.
The Distribution Rate is calculated by multiplying such
distribution by twelve (12), and dividing the resulting amount by
the ETF’s most recent NAV. The Distribution Rate represents a
single distribution from the ETF and does not represent its total
return. Distributions may also include a combination of ordinary
dividends, capital gain, and return of investor capital, which may
decrease an ETF’s NAV and trading price over time. As a result, an
investor may suffer significant losses to their investment. These
Distribution Rates may be caused by unusually favorable market
conditions and may not be sustainable. Such conditions may not
continue to exist and there should be no expectation that this
performance may be repeated in the future.
3 The 30-Day SEC Yield represents net investment income,
which excludes option income,
earned by such ETF over the 30-Day period ended January 31, 2024,
expressed as an annual percentage rate based on such ETF’s share
price at the end of the 30-Day period.
4 Each ETF’s strategy will cap potential gains if its reference
asset’s shares increase in value, yet subjects an investor to all
potential losses if the reference asset’s shares decrease in value.
Such potential losses may not be offset by income received by the
ETF.
Standardized Performance
For TSLY, click here. For OARK, click here. For APLY, click
here. For NVDY, click here. For AMZY, click here. For FBY, click
here. For GOOY, click here. For NFLY, click here. For CONY, click
here. For MSFO, click here. For DISO, click here. For XOMO, click
here. For JPMO, click here. For AMDY, click here. For PYPY, click
here. For SQY, click here. For MRNY, click here. For AIYY, click
here.
Prospectus
Click here.
Before investing you should carefully consider the
Fund’s investment objectives, risks, charges and expenses. This and
other information are in the prospectus. Please read the
prospectuses carefully before you invest.
The performance data quoted above represents past performance.
Past performance does not guarantee future results. The investment
return and principal value of an investment will fluctuate so that
an investor’s shares, when sold or redeemed, may be worth more or
less than their original cost and current performance may be lower
or higher than the performance quoted above. Performance current to
the most recent month-end can be obtained by calling (833)
378-0717.
Tidal Financial Group is the adviser for all YieldMax™ ETFs and
ZEGA Financial is their sub-adviser.
About Tidal Financial Group
Formed by ETF industry pioneers and thought leaders, Tidal
Financial Group sets out to revolutionize the way ETFs have
historically been developed, launched, marketed and sold. With a
focus on growing AUM, Tidal offers a comprehensive suite of
services, proprietary tools, and methodologies designed to bring
lasting ideas to market. Tidal is an advocate for ETF innovation.
The firm is on a mission to provide issuers with the intelligence
and tools needed to efficiently and to effectively launch ETFs and
to optimize growth potential in a highly competitive space. For
more information, visit https://www.tidalfinancialgroup.com/.
About ZEGA Financial
Founded in 2011, ZEGA Financial is a SEC-registered investment
adviser and investment manager that specializes in derivatives. The
firm leverages technology, data, experience, and proprietary
strategies to craft products and services for advisors and
individual investors. ZEGA Financial helps investors successfully
navigate volatile and uncertain markets through innovative hedging
strategies. The firm’s founding principles grew out of the
bestselling book co-authored by Jay Pestrichelli, ZEGA’s CEO and
Co-Founder, entitled “Buy and Hedge, the Five Iron Rules for
Investing Over the Long Term.” His book highlights how to bridge
the complicated nature of options investing with the needs of the
everyday investor.
Risk Information
Before investing you should carefully consider the Fund’s
investment objectives, risks, charges and expenses. This and other
information are in the prospectus. Please read the prospectuses
carefully before you invest.
Risk Disclosures
Investing involves risk. Principal loss is possible. THE FUND,
TRUST, ADVISER, AND SUB-ADVISER ARE NOT AFFILIATED WITH ANY
UNDERLYING ISSUER. Underlying Security Risk. Each
Underlying YieldMax™ ETF invests in options contracts that are
based on the value of its Underlying Security. This subjects each
Underlying YieldMax™ ETF to certain of the same risks as if it
owned shares of its Underlying Security, even though it does not.
As a result, each Underlying YieldMax™ ETF is subject to the risks
associated with the industry of the corresponding Underlying
Issuer. Derivatives Risk. Derivatives are
financial instruments that derive value from the underlying
reference asset or assets, such as stocks, bonds, or funds
(including ETFs), interest rates or indexes. Each Underlying
YieldMax™ ETF’s investments in derivatives may pose risks in
addition to, and greater than, those associated with directly
investing in securities or other ordinary investments, including
risk related to the market, imperfect correlation with underlying
investments or Underlying YieldMax™ ETF’s other portfolio holdings,
higher price volatility, lack of availability, counterparty risk,
liquidity, valuation and legal restrictions. The Underlying
YieldMax™ ETFs investment strategies are options-based. The prices
of options are volatile and are influenced by, among other things,
actual and anticipated changes in the value of the underlying
instrument, including the anticipated volatility, which are
affected by fiscal and monetary policies and by national and
international policies, changes in the actual or implied volatility
or the reference asset, the time remaining until the expiration of
the option contract and economic events. Distribution
Risk. Each Underlying YieldMax™ ETF aims to provide
monthly income, although there's no guarantee of distribution in
any given month, and the distribution amounts may vary
significantly. Monthly distributions may consist of capital
returns, reducing each Underlying YieldMax™ ETF's NAV and trading
price over time, thus potentially leading to significant losses for
investors (including the Fund), especially as an Underlying
YieldMax™ ETF's returns exclude any dividends paid by the
Underlying Security, which may result in lesser income compared to
a direct investment in the Underlying Security. NAV Erosion
Risk Due to Distributions. When an Underlying YieldMax™
ETF makes a distribution, its NAV typically drops by the
distribution amount on the related ex-dividend date. The repetitive
payment of distributions may significantly erode an Underlying
YieldMax™ ETF’s NAV and trading price over time, potentially
resulting in notable losses for investors (including the Fund).
Call Writing Strategy Risk. The continuous
application of each Underlying YieldMax™ ETF's call writing
strategy impacts its ability to participate in the positive price
returns of its Underlying Security, which in turn affects each
Underlying YieldMax™ ETF’s returns both during the term of the sold
call options and over longer time frames. An Underlying YieldMax™
ETF's participation in its Underlying Security's positive price
returns and its own returns will depend not only on the Underlying
Security's price but also on the path the Underlying Security's
price takes over time, illustrating that certain price trajectories
of the Underlying Security could lead to suboptimal outcomes for
the Underlying YieldMax™ ETF. Liquidity Risk. Some
securities held by the Fund, including options contracts, may be
difficult to sell or be illiquid, particularly during times of
market turmoil. Non-Diversification Risk. Because the Fund is
“non-diversified,” it may invest a greater percentage of its assets
in the securities of a single issuer or a smaller number of issuers
than if it was a diversified fund. Single Issuer
Risk. Each Underlying YieldMax™ ETF, focusing on an
individual security (Underlying Security), may experience more
volatility compared to traditional pooled investments or the market
generally due to issuer-specific attributes. Its performance may
deviate from that of diversified investments or the overall market,
making it potentially more susceptible to the specific performance
and risks associated with the Underlying Security. High
Portfolio Turnover Risk. Each Underlying YieldMax™ ETF may
actively and frequently trade all or a significant portion of the
Underlying YieldMax™ ETF’s holdings. A high portfolio turnover rate
increases transaction costs, which may increase the Underlying
YieldMax™ ETF’s expenses. New Fund Risk. The Fund
is a recently organized management investment company with no
operating history. As a result, prospective investors do not have a
track record or history on which to base their investment
decisions.
YieldMax™ ETFs are distributed by Foreside Fund Services, LLC.
Foreside is not affiliated with Tidal Financial Group, YieldMax™
ETFs or ZEGA Financial.
© 2024 YieldMax™ ETFs
Contact Gavin Filmore at gfilmore@tidalfg.com for more information.
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