YieldMax™ announced the launch today of the following ETF:
YieldMax™ BABA Option Income Strategy ETF (NYSE
Arca: BABO)
BABO seeks to generate monthly income by
pursuing options-based strategies on the ADRs of Alibaba
Group Holding Limited (“BABA”). BABO is
actively managed by ZEGA Financial. BABO does not invest
directly in BABA or its ADRs.
BABO is the newest member of the YieldMax™ ETF
family and like all YieldMax™ ETFs, aims to deliver current income
to investors. Please see table below for distribution and yield
information for all outstanding YieldMax™ ETFs. Note:
CRSH, FIAT and
DIPS are hereinafter referred to as the
“Short ETFs” and “ADR” stands for
American Depositary Receipt.
Please note that distributions may 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, and may have additional tax implications.
ETFTicker1 |
ETF Name |
ReferenceAsset |
DistributionRate2,4,5 |
30-DaySEC Yield3 |
TSLY |
YieldMax™ TSLA Option Income Strategy ETF |
TSLA |
92.95% |
4.26% |
OARK |
YieldMax™ Innovation Option Income Strategy ETF |
ARKK |
34.06% |
4.05% |
APLY |
YieldMax™ AAPL Option Income Strategy ETF |
AAPL |
24.68% |
3.81% |
NVDY |
YieldMax™ NVDA Option Income Strategy ETF |
NVDA |
69.07% |
4.34% |
AMZY |
YieldMax™ AMZN Option Income Strategy ETF |
AMZN |
31.07% |
4.33% |
FBY |
YieldMax™ META Option Income Strategy ETF |
META |
53.19% |
4.58% |
GOOY |
YieldMax™ GOOGL Option Income Strategy ETF |
GOOGL |
39.74% |
4.44% |
NFLY |
YieldMax™ NFLX Option Income Strategy ETF |
NFLX |
44.07% |
4.34% |
CONY |
YieldMax™ COIN Option Income Strategy ETF |
COIN |
85.90% |
4.61% |
MSFO |
YieldMax™ MSFT Option Income Strategy ETF |
MSFT |
25.53% |
4.45% |
DISO |
YieldMax™ DIS Option Income Strategy ETF |
DIS |
30.82% |
4.38% |
XOMO |
YieldMax™ XOM Option Income Strategy ETF |
XOM |
24.38% |
3.93% |
JPMO |
YieldMax™ JPM Option Income Strategy ETF |
JPM |
24.47% |
4.05% |
AMDY |
YieldMax™ AMD Option Income Strategy ETF |
AMD |
40.48% |
5.13% |
PYPY |
YieldMax™ PYPL Option Income Strategy ETF |
PYPL |
24.85% |
3.94% |
SQY |
YieldMax™ SQ Option Income Strategy ETF |
SQ |
45.58% |
4.70% |
MRNY |
YieldMax™ MRNA Option Income Strategy ETF |
MRNA |
53.24% |
4.41% |
AIYY |
YieldMax™ AI Option Income Strategy ETF |
AI |
45.62% |
4.27% |
MSTY |
YieldMax™ MSTR Option Income Strategy ETF |
MSTR |
107.85% |
0.00% |
YBIT |
YieldMax™ Bitcoin Option Income Strategy ETF |
Bitcoin ETP |
62.31% |
4.15% |
CRSH |
YieldMax™ Short TSLA Option Income Strategy ETF |
TSLA |
62.45% |
4.31% |
GDXY |
YieldMax™ Gold Miners Option Income Strategy ETF |
GDX® |
40.30% |
3.82% |
SNOY |
YieldMax™ SNOW Option Income Strategy ETF |
SNOW |
56.11% |
3.80% |
ABNY |
YieldMax™ ABNB Option Income Strategy ETF |
ABNB |
62.39% |
4.14% |
FIAT* |
YieldMax™ Short COIN Option Income Strategy ETF |
COIN |
- |
- |
DIPS* |
YieldMax™ Short NVDA Option Income Strategy ETF |
NVDA |
- |
- |
YMAX |
YieldMax™ Universe Fund of Option Income ETFs |
Multiple |
45.61% |
65.24% |
YMAG |
YieldMax™ Magnificent 7 Fund of Option Income ETFs |
Multiple |
41.70% |
49.30% |
ULTY |
YieldMax™ Ultra Option Income Strategy ETF |
Multiple |
110.23% |
0.00% |
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.
Distributions are not guaranteed. The Distribution Rate and
30-Day SEC Yield are not indicative of future distributions, if
any, on the ETFs. In particular, future distributions on any ETF
may differ significantly from its Distribution Rate or 30-Day SEC
Yield. You are not guaranteed a distribution under the
ETFs. Distributions for the ETFs (if any) are variable and may vary
significantly from month to month and may be zero.
Accordingly, the Distribution Rate and 30-Day SEC Yield will change
over time, and such change may be significant.
Investors in the Funds will not have rights to receive
dividends or other distributions with respect to the underlying
reference asset(s).
* |
The inception date for FIAT is July 9, 2024. The inception date for
DIPS is July 23, 2024. |
1 |
All YieldMax™ ETFs shown in the
table above (except YMAX, YMAG and ULTY) have a
gross expense ratio of 0.99%. YMAX and
YMAG have 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.
ULTY has a gross expense ratio of 1.24% but the
investment adviser has agreed to a 0.10% fee waiver through at
least February 28, 2025. |
2 |
The Distribution Rate shown is as
of close on August 7, 2024. The Distribution Rate is the annual
distribution rate 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 such distribution 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. 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. |
3 |
The 30-Day SEC Yield represents
net investment income, which excludes option
income, earned by such ETF over the 30-Day period ended
July 31, 2024, expressed as an annual percentage rate based on such
ETF’s share price at the end of the 30-Day period. As of such date,
the ULTY subsidized and unsubsidized 30-Day SEC
Yields were 0.00% and 0.00%, respectively. The subsidized yield
reflects fee waivers in effect while the unsubsidized yield does
not adjust for any fee waivers in effect. |
4 |
Each ETF’s strategy
(except those of the Short ETFs)
will cap potential gains if its reference 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. Each Short
ETF’s strategy will cap potential gains
if its reference asset’s shares decrease in value, yet subjects an
investor to all potential losses if the reference asset’s shares
increase in value. Such potential losses may not be offset by
income received by the ETF. |
5 |
As of the date hereof,
distributions for the following ETFs have included return of
investor capital: TSLY, OARK, APLY, NVDY, AMZY, FBY, GOOY, NFLY,
CONY, MSFO, DISO, XOMO, JPMO, AMDY, PYPY, SQY, MRNY, AIYY, YMAX,
YMAG, MSTY, ULTY and YBIT. For additional information, please visit
www.YieldMaxETFs.com/TaxInfo. |
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 MSTY, click here. For YBIT, click here. For CRSH, click
here. For GDXY, click here. For SNOY, click here. For ABNY, click
here. For YMAX, click here. For YMAG, click here. For ULTY, click
here.
Prospectuses
Click here.
Before investing you should carefully consider the
Fund’s investment objectives, risks, charges and expenses. This and
other information are in the prospectus. Please read the
prospectuses carefully before you invest.
There is no guarantee that any Fund’s investment
strategy will be properly implemented, and an investor may lose
some or all of its investment in any such Fund.
Tidal Financial Group is the adviser for all
YieldMax™ ETFs and ZEGA Financial is their
sub-adviser.
THE FUND, TRUST, AND SUB-ADVISER ARE NOT AFFILIATED WITH
ANY UNDERLYING REFERNCE ASSET.
Risk Disclosures (applicable to all YieldMax ETFs
referenced above, except the
Short ETFs)
YMAX and YMAG generally invest
in other YieldMax™ ETFs. As such, these two Funds are subject to
the risks listed in this section, which apply to all the YieldMax™
ETFs they may hold from time to time.
Investing involves risk. Principal loss is possible.
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 the underlying reference asset 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 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 the underlying reference asset 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,
Bitcoin ETP, GDX®, SNOW, ABNB, BABA), 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.
Risk Disclosures (applicable
only to BABO)
Currency Risk: Indirect exposure to foreign
currencies subjects the Fund to the risk that currencies will
decline in value relative to the U.S. dollar. Currency rates in
foreign countries may fluctuate significantly over short periods of
time for a number of reasons, including changes in interest rates
and the imposition of currency controls or other political
developments in the U.S. or abroad.Depositary Receipts
Risk: Investment in ADRs may be less liquid than the
underlying shares in their primary trading market. Foreign
Market and Trading Risk: The trading markets for many
foreign securities are not as active as U.S. markets and may have
less governmental regulation and oversight.Foreign
Securities Risk: Investments in securities of non-U.S.
issuers involve certain risks that may not be present with
investments in securities of U.S. issuers, such as risk of loss due
to foreign currency fluctuations or to political or economic
instability, as well as varying regulatory requirements applicable
to investments in non-U.S. issuers. There may be less information
publicly available about a non-U.S. issuer than a U.S. issuer.
Non-U.S. issuers may also be subject to different regulatory,
accounting, auditing, financial reporting and investor protection
standards than U.S. issuers.
Risk Disclosures (applicable
only to GDXY)
Risk of Investing in Foreign Securities. The
Fund is exposed indirectly to the securities of foreign issuers
selected by GDX®’s investment adviser, which subjects the Fund to
the risks associated with such companies. Investments in the
securities of foreign issuers involve risks beyond those associated
with investments in U.S. securities. Risk of Investing in
Gold and Silver Mining Companies. The Fund is exposed
indirectly to gold and silver mining companies selected by GDX®’s
investment adviser, which subjects the Fund to the risks associated
with such companies.
Risk Disclosures (applicable
only to YBIT)
YBIT does not invest directly in Bitcoin or any other
digital assets. YBIT does not invest directly in derivatives that
track the performance of Bitcoin or any other digital assets. YBIT
does not invest in or seek direct exposure to the current “spot” or
cash price of Bitcoin. Investors seeking direct exposure to the
price of Bitcoin should consider an investment other than
YBIT.
Bitcoin Investment Risk: The Fund’s indirect
investment in Bitcoin, through holdings in one or more Underlying
ETPs, exposes it to the unique risks of this emerging innovation.
Bitcoin’s price is highly volatile, and its market is influenced by
the changing Bitcoin network, fluctuating acceptance levels, and
unpredictable usage trends. Digital Assets Risk:
Digital assets like Bitcoin, designed as mediums of exchange, are
still an emerging asset class. They operate independently of any
central authority or government backing and are subject to
regulatory changes and extreme price volatility. Potentially No
1940 Act Protections. As of the date of this Prospectus, there is
only a single eligible Underlying ETP, and it is an investment
company subject to the 1940 Act. Bitcoin
ETP Risk: The Fund invests in options contracts
that are based on the value of the Bitcoin ETP. This subjects the
Fund to certain of the same risks as if it owned shares of the
Bitcoin ETP, even though it does not. Bitcoin ETPs are subject, but
not limited, to significant risk and heightened volatility. An
investor in a Bitcoin ETP may lose their entire investment. Bitcoin
ETPs are not suitable for all investors. In addition, not all
Bitcoin ETPs are registered under the Investment Company Act of
1940. Those Bitcoin ETPs that are not registered under such statute
are therefore not subject to the same regulations as exchange
traded products that are so registered.
Risk Disclosures (applicable
only to the Short ETFs)
Investing involves risk. Principal loss is
possible.Price Appreciation Risk. As part of the
Fund’s synthetic covered put strategy, the Fund purchases and sells
call and put option contracts that are based on the share price of
the underlying reference asset. This strategy subjects the Fund to
certain of the same risks as if it shorted shares of the underlying
reference asset, even though it does not. By virtue of the Fund’s
indirect inverse exposure to changes in the share price of the
underlying reference asset, the Fund is subject to the risk that
the share price of the underlying reference asset
increases.Put Writing Strategy Risk. The path
dependency (i.e., the continued use) of the Fund’s put writing
(selling) strategy will impact the extent that the Fund
participates in the price decreases of the underlying reference
asset and, in turn, the Fund’s returns, both during the term of the
sold put options and over longer time periods.Purchased OTM
Call Options Risk. The Fund’s strategy is subject to
potential losses if shares of the underlying reference asset
increase in value, which may not be offset by the purchase of
out-of-the-money (OTM) call options. The Fund purchases OTM calls
to seek to manage (cap) the Fund’s potential losses from the Fund’s
short exposure to the underlying reference asset if it appreciates
significantly in value. However, the OTM call options will cap the
Fund’s losses only to the extent that the share price of the
underlying reference asset increases to a price that is at or above
the strike price of the purchased OTM call options. Any increase in
the share price of the underlying reference asset to a price that
is below the strike price of the purchased OTM call options will
result in a corresponding loss for the Fund. For example, if the
OTM call options have a strike price that is approximately 100%
above the then-current share price of the underlying reference
asset at the time of the call option purchase, and the share price
of the underlying reference asset increases by at least 100% during
the term of the purchased OTM call options, the Fund will lose all
its value. Since the Fund bears the costs of purchasing the OTM
calls, such costs will decrease the Fund’s value and/or any income
otherwise generated by the Fund’s investment
strategy.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 reference asset, 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
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 put option contracts, which
limits the degree to which the Fund will participate in decreases
in value experienced by the underlying reference asset over the Put
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 (e.g., TSLA, COIN, NVDA), 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.
Holdings
As of August 7, 2024, the YieldMax™ BABA Option Income Strategy
ETF did not hold any shares or ADRs of Alibaba Group Holding
Limited (BABA). As of such date, the holdings of BABA in such fund
were 0.00%.
YieldMax™ ETFs are distributed by Foreside Fund Services, LLC.
Foreside is not affiliated with Tidal Financial Group, YieldMax™
ETFs or ZEGA Financial.
© 2024 YieldMax™ ETFs
Contact Gavin Filmore at gfilmore@tidalfg.com for more information.
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