What Is the MSFO ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The YieldMax MSFT Option Income Strategy ETF (MSFO) is an income product that adds an option-selling strategy to Microsoft stock to pursue monthly distributions, and its structure limits participation in upside. It is a single-stock option income ETF where distributions, outlook, and principal risk all need to be weighed together.
SubscribeWhat Is the YieldMax MSFT Option Income Strategy ETF?
The fund references the price movement of Microsoft (MSFT) through a synthetic position and collects option premiums by selling call options, following a single-stock option income strategy. It focuses on generating regular distributions rather than on the direction of the underlying stock.
It suits income-oriented investors who want exposure to an individual large-cap tech stock along with a regular monthly distribution cash flow.
It is an actively managed ETF run by YieldMax.
How Does the YieldMax MSFT Option Income Strategy ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | References a single stock, Microsoft (MSFT) |
| Management Style | Active (option-selling strategy) |
| Rebalancing Frequency | Rolled over according to option expiration cycles |
| Distribution Frequency | Monthly distributions |
| Total Expense Ratio | 1.03% |
The fund builds a synthetic long position in Microsoft stock and sells call options to collect premiums, which fund its distributions. In rising markets, selling options caps gains at the upper end, while in falling markets the fund absorbs most of the underlying stock's losses.
- Single-stock option income strategy
- Structure aimed at monthly distributions
YieldMax MSFT Option Income Strategy ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $96.8M, and the total expense ratio is 1.03% per year.
Compared with other single-stock income ETFs built the same way, only the underlying stock differs, and the option-selling structure is similar.
YieldMax MSFT Option Income Strategy ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe distribution yield depends heavily on the underlying stock's volatility and the option premium environment. When the underlying stock rallies strongly, selling options limits participation in the upside, and price performance tends to lag.
Income demand from investors seeking high distributions is behind the inflows. Because both distributions and net assets swing with the underlying stock's volatility and market sentiment, fund flows also show volatility.
YieldMax MSFT Option Income Strategy ETF Pros and Cons
Regular monthly distributions are its strength, but it is an income product with clear risks of capped upside and principal fluctuation.
💪 Key Strengths
⚠️ Points to Watch
YieldMax MSFT Option Income Strategy ETF Alternative ETFs and Related Products
The four products shown in the table, NVDY, TSLY, MSTY, and AMDY, are single-stock option income ETFs from the same family, based on NVIDIA, Tesla, MicroStrategy, and AMD respectively. FEPI also applies an option income strategy, but to a basket of several tech stocks. You can also compare sister products that differ only in the underlying stock, such as APLY (Apple), AMZY (Amazon), and GOOY (Alphabet).
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 NVDY | YieldMax NVDA Option Income Strategy ETF | $11.02 | -2.4% | $1.3B | 1.09% | 55.59% | -33.2% |
 MSTY | YieldMax MSTR Option Income Strategy ETF | $13.91 | +4.3% | $994.0M | 1.03% | 133.91% | -72.3% |
 FEPI | REX FANG & Innovation Equity Premium Income ETF | $38.28 | -0.7% | $677.3M | 0.65% | 24.86% | -19.3% |
 TSLY | YieldMax TSLA Option Income Strategy ETF | $21.86 | -2.7% | $658.5M | 1.07% | 76.35% | -47.6% |
 AMDY | Yieldmax AMD Option Income Strategy ETF | $39.66 | +1.4% | $425.2M | 1.00% | 81.02% | -18.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 BNO | United States Brent Oil Fund LP | 1.00% | $60.40 | -8.6% | $0.0M | - | - |
 USLM | United States Lime & Minerals Inc | 0.72% | $123.27 | +1.8% | $3.5B | 26.5 | 0.19% |
 UAMY | United States Antimony Corp | 0.10% | $2.98 | +3.5% | $446.0M | - | - |
YieldMax MSFT Option Income Strategy ETF Investor Checkpoints
Here are the points to review before investing in MSFO. Since it is an option income product that leads with high distributions, it is important to first understand its structure and risks, including what funds the distributions and how the capped upside and principal exposure work.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Distribution Structure | Sustainability of monthly distributions based on option premiums | May vary |
| 📈 Upside Participation | Whether gains are capped when the underlying stock surges | Capped |
| 📉 Downside Exposure | Principal risk if the underlying stock falls | High exposure |
| 💧 Expense Ratio | Fee burden from active management | Needs checking |
Because the option-selling structure caps upside while leaving most of the downside exposed, both price performance and distributions can be shaken when the underlying stock rises sharply or plunges.
It may be worth considering for investors who want option income exposure to Microsoft and a monthly distribution cash flow, but it is advisable to approach it only after fully understanding the capped upside and the risk of principal fluctuation.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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