💡 ULTY ETF Analysis: Generating Income from Ulta Beauty’s Volatility

📌 Table of Contents
✅ ULTY ETF Overview
🧠 Strategy & Structure
💼 Top Exposure
📈 Performance Overview
🔍 Pros & Cons
✅ Conclusion


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✅ 1. ULTY ETF Overview

Name: YieldMax ULTA Option Income Strategy ETF

Ticker: ULTY

Issuer: YieldMax

Launch Date: December 2023

Expense Ratio: 0.99%

Strategy: Covered call income on ULTA

Underlying Stock: Ulta Beauty Inc. (ULTA)


📌 ULTY aims to deliver monthly income by selling covered call options on ULTA, catering to income-seeking investors.


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🧠 2. Strategy & Structure

Actively managed strategy

Focuses on selling call options on Ulta Beauty (ULTA)

High income potential from volatility premiums

Monthly distributions


📌 Suitable for investors who want income from a specific consumer retail stock.


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💼 3. Top Exposure

100% exposure to Ulta Beauty through options

Indirect stock exposure

Sensitive to ULTA’s price movements



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📈 4. Performance (as of mid-2025)

Estimated 12-Month Yield: ~35–40% (variable)

Monthly Dividend Yield: ~2.5–3.5%

Price Volatility: Moderate to High

Capital Growth: Limited


📌 ULTY provides attractive income potential but caps upside from ULTA stock.


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🔍 5. Pros & Cons

✅ Pros

High monthly income

Simple, focused strategy

Suitable for income-focused portfolios


❌ Cons

Tied to one stock (ULTA)

Upside growth is capped

High expense ratio (0.99%)

Not suitable for long-term growth investing



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✅ 6. Conclusion
ULTY is a niche ETF designed for investors looking for steady cash flow from a single stock—Ulta Beauty.
Best for short- to mid-term income strategies, not for capital appreciation.