John Smith, a financial analyst at Morningstar, says dividend ETFs are a popular choice for investors seeking passive income and portfolio diversification. “Dividend ETFs provide an easy and cost-effective way to generate passive income while diversifying investments,” he says. The YieldMax family of ETFs has captured significant attention due to their innovative options-based income strategies.
Here are five high-yield ETFs from YieldMax that investors are talking about:
The YieldMax Ultra Option Income Strategy ETF is designed to maximize yield by implementing an options-based income strategy. By investing in a diversified set of options contracts, the ETF aims to generate high monthly income while managing risk exposure. It has a distribution rate of 85.01% and a net expense ratio of 1.14%.
The YieldMax MSTR Option Income Strategy ETF offers exposure to MicroStrategy Inc. and uses an options strategy to boost income. Given MicroStrategy’s increasing involvement in Bitcoin holdings, the ETF is popular among investors seeking crypto-adjacent income opportunities.
dividend ETFs with options-based strategies
It boasts a distribution rate of 98.03% and an expense ratio of 0.99%. The YieldMax Universe Fund of Option Income ETFs is a fund-of-funds that invests in a portfolio of high-yielding option income ETFs, providing access to multiple high-income strategies in a single investment.
The distribution rate is 47.11%, with an expense ratio of 1.28%. The YieldMax NVDA Option Income Strategy ETF is tailor-made for investors wanting exposure to Nvidia while generating additional income through options. It allows investors to benefit from the company’s growth potential and option-generated yield.
It has a distribution rate of 52.44% and an expense ratio of 1.01%. The YieldMax Bitcoin Option Income Strategy ETF uses options to generate yield while maintaining exposure to Bitcoin’s price movements. It is an intriguing pick for crypto-savvy income investors with a distribution rate of 84.66% and an expense ratio of 0.99%.
Smith notes that the innovative options-based strategies employed by the YieldMax family of ETFs make them particularly noteworthy for investors looking to maximize their returns. As dividend ETFs continue to gain popularity, these high-yield options from YieldMax are worth considering for those seeking to boost their investment income.
