What Is the ULTY ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An aggressive income ETF that pursues very high weekly distributions through an options strategy built on highly volatile individual stocks.
SubscribeWhat Is This ETF?
Rather than tracking a specific index, the fund's portfolio manager hand-picks highly volatile stocks and uses a strategy designed to maximize options premium income. It is an ultra-high-yield product that focuses on the large distributions paid every week rather than on gains from share price appreciation.
It suits aggressive income investors who prefer immediate, high cash flow over capital gains and who can accept the risk of losing principal.
It is an actively managed ETF launched by YieldMax in 2024.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | Not applicable (actively managed) |
| Management Style | Active (covered calls and call spreads) |
| Target Holdings | 15 to 30 highly volatile individual stocks |
| Distribution Frequency | Weekly distributions |
| Total Expense Ratio | 1.30% |
The portfolio blends "engine" stocks with high implied volatility and stable large-cap stocks. Its main source of income is the premium generated by selling call options on the selected stocks on a daily or weekly basis.
- Very frequent weekly distribution payments
- Maximized income by exploiting the high volatility of individual stocks
Size and Costs
Assets under management (AUM) stand at $623.6M, and the total expense ratio is 1.30% per year.
Because the fund actively runs an options strategy and rotates its holdings, its fees are higher than those of a typical index ETF. However, the scale of the distributions it generates offsets this cost.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeSince its launch, the share price has swung widely in line with the movements of highly volatile tech stocks, while the fund has consistently maintained a high level of distributions, drawing the attention of income investors.
In a high interest rate environment, money seeking immediate cash flow has been flowing in, and awareness of the fund is rising quickly, especially among retail investors who favor ultra-high yields.
Pros and Cons
This product carries a clear advantage in maximized cash flow, along with equally clear drawbacks in the form of principal erosion and share price decline risk.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
The XBOX, UJAN, UDEC, and UFEB shown in the table are specialized products focused on ultra-short-term Treasury investment or downside protection (buffers), so they differ greatly in character from ULTY, which pursues high dividend income. They aim for relatively low volatility and also differ in their fee structures. Meanwhile, NVDY, CONY, and TSLY from the same issuer concentrate on individual stocks, and ULTY can be seen as a diversified version of them. FEPI and AIPI, which cover a broader range of highly volatile stocks, could also make good comparison candidates.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XBOX | Roundhill Box Spread ETF | $101.38 | -0.1% | $363.3M | 0.14% | - | - |
 UJUL | Innovator U.S. Equity Ultra Buffer ETF - July | $41.54 | +0.5% | $303.7M | 0.79% | - | +8.3% |
 UOCT | Innovator U.S. Equity Ultra Buffer ETF - October | $42.50 | +0.3% | $265.0M | 0.79% | - | +9.8% |
 UJAN | Innovator U.S. Equity Ultra Buffer ETF - January | $46.64 | +0.3% | $250.0M | 0.79% | - | +9.9% |
 UAUG | Innovator U.S. Equity Ultra Buffer ETF - August | $43.06 | +0.2% | $245.9M | 0.79% | - | +8.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| GOOGL | Alphabet Inc | 0.06% | $316.80 | -1.1% | $3.87T | 15.9 | 0.26% |
| AMZN | Amazon.com Inc | 0.11% | $249.09 | +0.4% | $2.69T | 20.0 | - |
| ADI | Analog Devices Inc | 0.05% | $407.93 | +4.3% | $197.7B | 48.4 | 1.04% |
| MELI | MercadoLibre Inc | 0.05% | $1668.72 | -7.8% | $84.6B | 45.4 | - |
| LRCX | Lam Research Corp | 0.05% | $237.50 | +3.2% | $297.2B | 35.3 | 0.55% |
| CIEN | CIENA Corp | 0.05% | $335.93 | +4.9% | $47.6B | 75.0 | - |
| PWR | Quanta Services Inc | 0.05% | $563.93 | +3.2% | $84.8B | 64.6 | 0.08% |
| LITE | Lumentum Holdings Inc | 0.05% | $818.10 | +8.2% | $74.1B | - | - |
| NVDA | NVIDIA Corp | 0.05% | $216.00 | +2.4% | $5.21T | 27.3 | 0.36% |
Investor Checkpoints
The ULTY ETF is a product with a strongly high-risk, high-return profile. Before investing, it is important to fully understand the structure of the options strategy and its cost system.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Confirm the high cost level that comes with active management | Maintained |
| 📊 Distribution Sustainability | Check the size and source of the weekly distributions | On the high side |
| 📉 Net Asset Value Trend | Review whether principal is eroding and the long-term price direction | Needs review |
If the decline in the underlying stocks' prices exceeds the options premium income, the real return can turn negative. Be especially careful, as the tax burden can be significant.
It is better suited to investors who need abundant cash flow right now than to those seeking stable long-term growth. It is advisable to use it as a portion of the overall portfolio to adjust the income weighting.
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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