CHICAGO and MILWAUKEE and NEW YORK, Nov. 21, 2024 (GLOBE NEWSWIRE) -- YieldMax™ announced the launch today of the first of its series of Target 12™ ETFs.
YieldMax™ Target 12™ Big 50 Option Income ETF (NYSE Arca: BIGY)
BIGY Overview
BIGY is an actively managed ETF that seeks a target annual income level of 12% and capital appreciation via direct investments in a select portfolio of 50 companies (each a "Big 50 Company” or an "Underlying Security”). BIGY aims to generate a target annual income level of 12% primarily by selling options contracts on some or all of its Underlying Securities.
Big 50 Company
The Fund considers a Big 50 Company as one of the 50 largest U.S. companies (in terms of market capitalization) whose U.S.-listed equity securities have options contracts that are sufficiently liquid, as determined by BIGY's Sub-Adviser, ZEGA Financial, LLC ("ZEGA”).
BIGY Equity Portfolio
BIGY seeks capital appreciation via direct investments in the Big 50 Companies. ZEGA will typically evaluate and select the Underlying Securities every quarter. This quarterly evaluation and selection process, which may result in the replacement of some Underlying Securities, ensures that BIGY maintains direct exposure to an updated portfolio of qualified Big 50 Companies. BIGY's portfolio, generally comprised of 50 companies, will be weighted by market capitalization, with adjustments made to ensure that the largest companies don't represent outsized exposures. Any dividends paid by the Big 50 Companies will contribute to BIGY's income generation.
BIGY Options Portfolio
BIGY seeks to generate a target annual income level of 12% primarily by writing (selling) options contracts on some or all of its Underlying Securities. Depending on ZEGA's outlook, it will select one or more options strategies that it believes will best provide BIGY with current income while generally also attempting to participate in a portion of the share price increases experienced by the Underlying Securities. By strategically entering and exiting options positions, ZEGA seeks to enhance BIGY's income potential and performance.
BIGY Distribution Schedule
BIGY is the newest member of the YieldMax™ ETF family and the first of its series of Target 12™ ETFs. Like all YieldMax™ ETFs, BIGY aims to deliver current income to investors. BIGY's first distribution is expected to be announced on January 7, 2025, and along with future Target 12™ ETFs, will thereafter aim to announce its distributions on the first Tuesday of every month.
Why Invest in BIGY?
- BIGY seeks to generate a target annual income level of 12%, which is not dependent on the value of the Underlying Securities.
- BIGY seeks to participate in some of the potential share price gains experienced by the Underlying Securities.
| ETF
Ticker 1 | ETF Name | Reference
Asset | Distribution Rate 2,4,5 | 30-Day SEC Yield 3 |
| TSLY | YieldMax™ TSLA Option Income Strategy ETF | TSLA | 50.76% | 3.84% |
| OARK | YieldMax™ Innovation Option Income Strategy ETF | ARKK | 34.13% | 3.51% |
| APLY | YieldMax™ AAPL Option Income Strategy ETF | AAPL | 24.51% | 3.35% |
| NVDY | YieldMax™ NVDA Option Income Strategy ETF | NVDA | 51.58% | 3.15% |
| AMZY | YieldMax™ AMZN Option Income Strategy ETF | AMZN | 76.17% | 3.53% |
| FBY | YieldMax™ META Option Income Strategy ETF | META | 58.12% | 3.30% |
| GOOY | YieldMax™ GOOGL Option Income Strategy ETF | GOOGL | 32.34% | 3.41% |
| NFLY | YieldMax™ NFLX Option Income Strategy ETF | NFLX | 53.88% | 3.48% |
| CONY | YieldMax™ COIN Option Income Strategy ETF | COIN | 155.62% | 3.61% |
| MSFO | YieldMax™ MSFT Option Income Strategy ETF | MSFT | 35.60% | 3.67% |
| DISO | YieldMax™ DIS Option Income Strategy ETF | DIS | 50.59% | 3.22% |
| XOMO | YieldMax™ XOM Option Income Strategy ETF | XOM | 26.01% | 3.33% |
| JPMO | YieldMax™ JPM Option Income Strategy ETF | JPM | 24.45% | 3.51% |
| AMDY | YieldMax™ AMD Option Income Strategy ETF | AMD | 92.29% | 4.11% |
| PYPY | YieldMax™ PYPL Option Income Strategy ETF | PYPL | 42.12% | 3.15% |
| SQY | YieldMax™ SQ Option Income Strategy ETF | SQ | 102.02% | 3.06% |
| MRNY | YieldMax™ MRNA Option Income Strategy ETF | MRNA | 104.71% | 3.90% |
| AIYY | YieldMax™ AI Option Income Strategy ETF | AI | 109.42% | 3.82% |
| YMAX | YieldMax™ Universe Fund of Option Income ETFs | Multiple | 69.67% | 67.35% |
| YMAG | YieldMax™ Magnificent 7 Fund of Option Income ETFs | Multiple | 16.12% | 54.91% |
| MSTY | YieldMax™ MSTR Option Income Strategy ETF | MSTR | 130.57% | 0.00% |
| ULTY | YieldMax™ Ultra Option Income Strategy ETF | Multiple | 109.98% | 0.00% |
| YBIT | YieldMax™ Bitcoin Option Income Strategy ETF | Bitcoin ETP | 55.94% | 4.00% |
| CRSH | YieldMax™ Short TSLA Option Income Strategy ETF | TSLA | 72.04% | 3.71% |
| GDXY | YieldMax™ Gold Miners Option Income Strategy ETF | GDX® | 40.09% | 3.27% |
| SNOY | YieldMax™ SNOW Option Income Strategy ETF | SNOW | 41.49% | 3.54% |
| ABNY | YieldMax™ ABNB Option Income Strategy ETF | ABNB | 71.08% | 2.74% |
| FIAT | YieldMax™ Short COIN Option Income Strategy ETF | COIN | 111.05% | 3.58% |
| DIPS | YieldMax™ Short NVDA Option Income Strategy ETF | NVDA | 59.66% | 4.07% |
| BABO | YieldMax™ BABA Option Income Strategy ETF | BABA | 58.04% | 3.25% |
| YQQQ | YieldMax™ Short N100 Option Income Strategy ETF | N100 | 23.37% | 3.50% |
| TSMY | YieldMax™ TSM Option Income Strategy ETF | TSM | 59.41% | 3.13% |
| SMCY | YieldMax™ SMCI Option Income Strategy ETF | SMCI | 105.65% | 4.99% |
| PLTY* | YieldMax™ PLTR Option Income Strategy ETF | PLTR | - | - |
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.Note: DIPS, FIAT, CRSH and YQQQ are hereinafter referred to as the "Short ETFs”.
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 period to period 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 PLTY is October 7, 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 November 20, 2024. The Distribution Rate is the annual distribution rate an investor would receive if the most recent distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by annualizing an ETF's Distribution per Share and dividing such annualized 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. Distributions may also 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. 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 October 31, 2024, expressed as an annual percentage rate based on such ETF's share price at the end of the 30-Day period. | |
| 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 decreases in value, yet subjects an investor to all potential losses if the reference asset increases in value. Such potential losses may not be offset by income received by the ETF. | |
| 5 | YieldMax™ ETF distributions may contain return of capital, but an estimate cannot be provided at this time. Please refer to the 19a-1 notices here for additional details regarding the distributions' composition, once available. | |
| Each Fund has a limited operating history and while each Fund's objective is to provide current income, there is no guarantee the Fund will make a distribution. Distributions are likely to vary greatly in amount. | ||
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 YMAX, click here. For YMAG, click here. For MSTY, click here. For ULTY, click here. For YBIT, click here. For CRSH, click here. For GDXY, click here. For SNOY, click here. For ABNY, click here. For FIAT, click here. For DIPS, click here. For BABO, click here. For YQQQ, click here. For TSMY, click here. For SMCY, click here. For PLTY, 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 REFERENCE 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 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 period. 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, TSM, SMCI, PLTR), may be more volatile than a traditional pooled investment or the market as a whole and may perform diff