What Is the NVDY ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
This ETF pursues high dividend income through a synthetic covered call strategy on NVIDIA. Its structure can limit gains when the stock price surges.
SubscribeWhat Is This ETF?
It is a synthetic covered call product that aims to participate in NVIDIA's share price performance while paying a high monthly distribution funded by income from selling call options.
It suits income-focused investors who want to generate a regular cash flow from NVIDIA's high volatility.
It is an actively managed ETF launched by YieldMax in 2023.
How Does It Invest?
| Item | Details |
|---|---|
| Reference Asset | NVIDIA (NVDA) common stock |
| Management Style | Synthetic covered call (active) |
| Rebalancing Frequency | As needed (considering option expirations) |
| Distribution Frequency | Monthly |
| Total Expense Ratio | 1.09% |
The fund uses NVIDIA options to build a synthetic long position while simultaneously selling out-of-the-money call options to collect premium income. This approach seeks to maximize returns when the share price moves sideways or rises gradually.
- A very high target distribution rate
- A synthetic strategy that works without directly holding the stock
Size and Costs
Assets under management (AUM) stand at $1.3B, and the total expense ratio is 1.09% per year.
The more volatile the underlying asset, the higher the option premiums, which can have a positive effect on the size of distributions.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAs NVIDIA's share price surged alongside the steep growth of the artificial intelligence industry, the fund drew strong market attention by recording some capital gains in addition to income.
Backed by steady demand from individual investors who prefer high dividends, its assets have grown rapidly, and it maintains trading volume near the top among products using similar strategies.
Pros and Cons
Its strength is a high level of dividend income, but it is exposed to the risk of a decline in the underlying share price and its gains are capped when the price rises.
💪 Key Strengths
⚠️ Risks to Note
Alternative ETFs and Related Products
MSTY, TSLY, CONY, and others shown in the table are other single-stock option strategy products managed by YieldMax, and they share a similar high-dividend profile. Meanwhile, if you want to fully participate in NVIDIA's strong share price gains, holding NVDA shares directly is more advantageous, and if you want aggressive returns, the leveraged products NVDL or NVDU could be alternatives. On the other hand, if you expect the share price to fall or need a hedge, the inverse ETF NVDS is also an option worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 MSTY | YieldMax MSTR Option Income Strategy ETF | $13.34 | +3.3% | $962.4M | 1.03% | 139.63% | -75.1% |
 TSLY | YieldMax TSLA Option Income Strategy ETF | $22.47 | -1.1% | $672.6M | 1.07% | 74.28% | -48.2% |
 FEPI | REX FANG & Innovation Equity Premium Income ETF | $38.53 | +1.8% | $666.0M | 0.65% | 26.71% | -20.4% |
 AMDY | Yieldmax AMD Option Income Strategy ETF | $39.11 | +3.8% | $409.5M | 1.00% | 82.16% | -21.5% |
 PLTY | YieldMax PLTR Option Income Strategy ETF | $32.52 | -0.7% | $341.5M | 1.07% | 75.88% | -51.4% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 BNO | United States Brent Oil Fund LP | 0.91% | $66.11 | +0.2% | $0.0M | - | - |
 UAMY | United States Antimony Corp | 0.22% | $2.88 | +0.3% | $431.1M | - | - |
 USLM | United States Lime & Minerals Inc | 0.76% | $121.04 | +1.7% | $3.5B | 26.1 | 0.2% |
Investor Checkpoints
These are the key points to check before investing in NVDY. It is necessary to make an investment decision only after fully understanding the structural limitations hidden behind the high dividend income and the risk of principal loss if the share price falls.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Target Distribution Rate | Review past payment history and future sustainability | Very high |
| 📊 Underlying Asset Outlook | Confidence in NVIDIA's long-term upward share price trend | Positive |
| 📉 Principal Protection | Awareness of the possible principal loss if the share price falls | Needs review |
When the underlying asset's price falls sharply, option premiums alone are hard-pressed to defend against losses. Keep in mind that gains are also capped at a certain level even in a rising market.
It can be a useful choice for investors seeking to maximize dividend income, but it is a high-risk product, and sizing the position appropriately is essential for the stability of the overall portfolio.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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