🇺🇸 NVDY ETF Analysis

🎯 Covered Calls on NVIDIA for Monthly Income

📌 Table of Contents
✅ Overview
🧠 Strategy & Structure
💼 Holdings
📈 Performance
🔍 Pros & Cons
✅ Conclusion


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✅ 1. ETF Overview

Name: YieldMax™ NVDA Option Income Strategy ETF

Ticker: NVDY

Issuer: YieldMax

Inception Date: July 18, 2023

Expense Ratio: 0.99%

Distribution Frequency: Monthly



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🧠 2. Strategy & Structure

NVDY employs a synthetic covered call strategy on NVIDIA (NVDA) using options to generate high monthly income.
It doesn’t directly hold NVIDIA shares but uses swap agreements to simulate exposure.


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💼 3. Holdings

The ETF holds no actual NVDA stocks.

Its key assets are:

Total Return Swaps referencing NVDA

U.S. Treasuries or cash equivalents as collateral


Entire portfolio is option- and swap-based.



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📈 4. Performance

12-Month Yield (Trailing): ~30–45% (depending on NVDA volatility)

NAV Volatility: High (due to NVDA exposure)

Target Investors: Income-focused traders who can accept capital risk.



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🔍 5. Pros & Cons

Pros:

Attractive monthly income stream

Thematic exposure to NVDA & AI

Fits well in income-generating portfolios


Cons:

High expense ratio

No capital appreciation benefit from NVDA rally

Complicated structure may confuse beginners



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✅ Conclusion

NVDY is ideal for investors seeking short-term high income from NVDA’s volatility, not for long-term capital growth. Best suited as a satellite position rather than a core holding.


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