MSTY seeks to generate monthly income via a synthetic covered call strategy on MicroStrategy Incorporated (MSTR). The ETF is actively managed by ZEGA Financial. MSTY does not invest directly in MSTR.
MSTY is the newest member of the growing 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
53.51%
5.15%
OARK
YieldMax™ Innovation Option Income Strategy ETF
ARKK
36.80%
4.27%
APLY
YieldMax™ AAPL Option Income Strategy ETF
AAPL
11.43%
4.09%
NVDY
YieldMax™ NVDA Option Income Strategy ETF
NVDA
75.07%
3.63%
AMZY
YieldMax™ AMZN Option Income Strategy ETF
AMZN
36.87%
4.03%
FBY
YieldMax™ META Option Income Strategy ETF
META
62.52%
3.70%
GOOY
YieldMax™ GOOGL Option Income Strategy ETF
GOOGL
29.79%
4.11%
NFLY
YieldMax™ NFLX Option Income Strategy ETF
NFLX
83.24%
3.55%
CONY
YieldMax™ COIN Option Income Strategy ETF
COIN
60.63%
4.74%
MSFO
YieldMax™ MSFT Option Income Strategy ETF
MSFT
37.15%
3.76%
DISO
YieldMax™ DIS Option Income Strategy ETF
DIS
16.97%
3.71%
XOMO
YieldMax™ XOM Option Income Strategy ETF
XOM
15.27%
3.94%
JPMO
YieldMax™ JPM Option Income Strategy ETF
JPM
13.71%
3.66%
AMDY
YieldMax™ AMD Option Income Strategy ETF
AMD
97.44%
3.86%
PYPY
YieldMax™ PYPL Option Income Strategy ETF
PYPL
44.72%
3.92%
SQY
YieldMax™ SQ Option Income Strategy ETF
SQ
22.64%
4.35%
MRNY
YieldMax™ MRNA Option Income Strategy ETF
MRNA
39.31%
3.78%
AIYY
YieldMax™ AI Option Income Strategy ETF
AI
29.95%
4.01%
YMAX
YieldMax™ Universe Fund of Option Income ETFs
Multiple
31.94%
-
YMAG
YieldMax™ Magnificent 7 Fund of Option Income ETFs
Multiple
26.10%
-
1All YieldMax™ ETFs shown in the table above (except YMAX and YMAG) have a gross expense ratio of 0.99%. YMAX and YMAGhave 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.
2The Distribution Rate shown is as of close on February 21, 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 suchdistribution 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.
3The 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.
4Each ETF’s strategy will cap potential gains if itsreference 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. For YMAX, click here. For YMAG, click here.
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 Disclosures
Investing involves risk. Principal loss is possible. MSTR Risk. The Fund invests in options contracts that are based on the value of MSTR. This subjects the Fund to certain of the same risks as if it owned shares of MSTR, even though it does not. Call Writing Strategy Risk. The path dependency (i.e., the continued use) of the Fund's call writing strategy will impact the extent that the Fund participates in the positive price returns of MSTR and, in turn, the Fund's returns, both during the term of the sold call options and over longer time periods. Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared ("cleared derivatives"). In a transaction involving cleared derivatives, the Fund's counterparty is a clearing house rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house ("clearing members") can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members. 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. The Fund’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 the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions. Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. 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 political, 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. As part of the Fund’s investment objective, the Fund seeks to provide current monthly income. There is no assurance that the Fund will make a distribution in any given month. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next. High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings. 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. 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. Price Participation Risk. The Fund employs an investment strategy that includes the sale of call option contracts, which limits the degree to which the Fund will participate in increases in value experienced by MSTR over the Call Period. Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, which focuses on an individual security (ARKK, TSLA, AAPL, NVDA, AMZN, META, GOOGL, NFLX, COIN, MSFT, DIS, XOM, JPM, AMD, PYPL, SQ, MRNA, AI, MSTR), may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.
Investors in the Fund(s) will not have rights to receive dividends or other distributions with respect to the underlying stock.
Holdings
As of February 21, 2024, the YieldMax™ MSTR Option Income Strategy ETF did not hold any shares of MicroStrategy Incorporated (MSTR). The holdings of MSTR in such fund were 0.00% as of such date.
YieldMax™ ETFs are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Tidal Financial Group, YieldMax™ ETFs or ZEGA Financial.
