TSMY ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The YieldMax TSM Option Income Strategy ETF (TSMY) pursues regular income through a synthetic covered call strategy linked to Taiwan Semiconductor Manufacturing (TSM) shares. Its distribution structure is worth comparing with option income products tied to semiconductor-related stocks such as NVDY and SMCY.
SubscribeWhat Is the YieldMax TSM Option Income Strategy ETF?
This is an actively managed ETF that builds indirect exposure to the Taiwan Semiconductor Manufacturing (TSM) ADR through a combination of options, and seeks regular income by selling call options.
It suits investors who prioritize regular distribution income over a directional rise in TSM.
The ETF is actively managed by YieldMax.
How Does the YieldMax TSM Option Income Strategy ETF Invest?
| Item | Details |
|---|---|
| Underlying asset | Options linked to the TSM (Taiwan Semiconductor Manufacturing) ADR |
| Management style | Active (synthetic covered call) |
| Rebalancing cycle | Rolled over as options expire |
| Distribution frequency | Weekly distributions |
| Total expense ratio | 1.01% |
Rather than holding TSM shares directly, the fund combines standard listed options and FLEX options to build synthetic exposure, and uses the premiums generated from selling call options as the source of its distributions. Participation in share price gains is capped at the strike price of the call options sold.
- Option income structure linked to the single stock TSM
- Non-diversified portfolio
YieldMax TSM Option Income Strategy ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $97.9M, and the total expense ratio is 1.01% per year.
It differs from the peer option income ETFs shown in the table in terms of underlying assets, fees, and distribution rates.
YieldMax TSM Option Income Strategy ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe level of option premiums, and the size of the distributions tied to them, has fluctuated along with the volatility of the underlying TSM shares. Because of the covered call structure, the gap in perceived performance between rising and falling phases of TSM's share price tends to be pronounced.
Market interest in the semiconductor cycle and in TSM shares continues, and across the broader group of option income products built on single-stock underlying assets, interest from investors seeking regular distributions has persisted.
YieldMax TSM Option Income Strategy ETF Pros and Cons
Regular income generation is its strength, while limited upside participation and exposure to underlying asset volatility are cited as drawbacks.
💪 Key Strengths
⚠️ Points to Watch
YieldMax TSM Option Income Strategy ETF Alternatives and Related Products
CHPY, GDXY, SLJY, BABO and others shown in the table are option income ETFs from the same YieldMax family, and they differ in underlying assets and distribution rate structure. Beyond these, single-stock option income ETFs built on other semiconductor and tech stocks include NVDY (NVIDIA) and SMCY (Super Micro Computer), and products tied to other large tech names such as TSLY (Tesla) and MSTY (MicroStrategy) can also serve as points of comparison.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 CHPY | YieldMax Semiconductor Portfolio Option Income ETF | $57.82 | +0.8% | $1.2B | 1.03% | 47.03% | +0.5% |
 GDXY | YieldMax Gold Miners Option Income Strategy ETF | $9.02 | -2.4% | $270.2M | 1.00% | 79.22% | -43.0% |
 SLJY | Amplify SILJ Junior Silver Miners Covered Call ETF | $24.25 | -2.1% | $66.8M | 0.76% | 29.51% | -14.8% |
 BABO | YieldMax BABA Option Income Strategy ETF | $6.41 | -2.4% | $12.3M | 1.00% | 74.99% | -60.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 BNO | United States Brent Oil Fund LP | 0.25% | $70.99 | +3.0% | $0.0M | - | - |
 USLM | United States Lime & Minerals Inc | 1.42% | $111.71 | +0.2% | $3.2B | 23.9 | 0.21% |
 UAMY | United States Antimony Corp | 0.20% | $3.06 | -1.3% | $458.0M | - | - |
YieldMax TSM Option Income Strategy ETF Investor Checkpoints
Here are the points to review before investing in TSMY. It is advisable to check the regular income structure, the limited upside participation, and the concentration in the single stock TSM before making an investment decision.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the cumulative cost impact over a long holding period | Annual fee applies |
| 📈 Limited upside participation | Check how much of TSM's rally gains is reflected | Capped at the option strike price |
| 💰 Distribution volatility | Be aware that weekly distribution sizes may fluctuate | Tied to premium levels |
| 🎯 Underlying asset concentration | Confirm the non-diversified structure linked to the single stock TSM | Mainly TSM-linked options |
If TSM's share price falls sharply, the fund reflects the losses in full, and the cushioning effect of option premiums is limited. In a rising market, the call-selling structure can cause returns to lag those of TSM.
This is an option income product suited to investors who prioritize regular income over a directional bet on TSM, and the limited upside participation and underlying asset concentration risk should be considered together.
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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