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YieldMax BABA Option Income Strategy ETF (BABO)
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Upturn Advisory Summary
04/01/2025: BABO (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Analysis of Past Performance
Type ETF | Historic Profit 25.24% | Avg. Invested days 42 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  5.0 | ETF Returns Performance  4.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Volume (30-day avg) 152250 | Beta - | 52 Weeks Range 13.76 - 21.75 | Updated Date 03/7/2025 |
52 Weeks Range 13.76 - 21.75 | Updated Date 03/7/2025 |
Upturn AI SWOT
YieldMax BABA Option Income Strategy ETF
ETF Overview
Overview
The YieldMax BABA Option Income Strategy ETF (BABA) is designed to generate monthly income by investing in BABA (Alibaba) stock and using a synthetic covered call option strategy. It aims to provide current income rather than capital appreciation.
Reputation and Reliability
YieldMax is a relatively new issuer specializing in option income ETFs. Their reputation is still developing, but they focus on innovative income strategies.
Management Expertise
The management team has experience in options trading and ETF management, but their track record is relatively short compared to established issuers.
Investment Objective
Goal
The primary goal is to generate monthly income by implementing a covered call strategy on Alibaba stock.
Investment Approach and Strategy
Strategy: The ETF does not track a specific index but instead employs a covered call strategy using options on BABA stock.
Composition The ETF primarily holds BABA (Alibaba) stock and options contracts on BABA.
Market Position
Market Share: Information on specific market share data is limited, but the ETF operates within the covered call income strategy niche.
Total Net Assets (AUM): 178730450
Competitors
Key Competitors
- QYLD
- XYLD
- JEPI
- JEPQ
Competitive Landscape
The ETF market for income strategies is competitive. BABA offers exposure to Alibaba with a covered call approach, providing high income. The competitors are more diversified options-based income strategies. BABA's disadvantage is that it is concentrated in a single stock (BABA), making it riskier than diversified covered call ETFs.
Financial Performance
Historical Performance: Past performance is not indicative of future results, but since inception, the ETF has generated a high yield due to its option strategy.
Benchmark Comparison: It is difficult to find a direct benchmark. It is best compared against the performance of BABA stock and other covered call ETFs.
Expense Ratio: 0.99
Liquidity
Average Trading Volume
The average trading volume is moderate, which indicates sufficient liquidity for most investors.
Bid-Ask Spread
The bid-ask spread is generally reasonable, reflecting adequate liquidity.
Market Dynamics
Market Environment Factors
The performance of the ETF is heavily dependent on the performance of BABA stock and the volatility of BABA options. It is also affected by investor sentiment towards Chinese tech companies.
Growth Trajectory
The growth trajectory depends on the popularity of covered call strategies and investor interest in Alibaba. Any changes to the option strategy would impact holdings.
Moat and Competitive Advantages
Competitive Edge
BABA offers a unique combination of exposure to Alibaba and a covered call strategy. The ETF benefits from focused management and targeted marketing efforts. It attracts investors seeking high current income from a specific, well-known tech stock. This concentrated focus differentiates it, but also adds to risk relative to a diversified portfolio. The strategyu2019s success hinges on BABAu2019s continued viability and market volatility.
Risk Analysis
Volatility
The ETF's volatility can be significant due to its concentrated holding in BABA and the use of options.
Market Risk
The ETF is subject to the market risk of Alibaba stock, including regulatory risk, geopolitical risk, and company-specific risk.
Investor Profile
Ideal Investor Profile
The ideal investor is someone seeking high current income and is comfortable with the risks associated with a concentrated position in BABA and options strategies.
Market Risk
It is suitable for investors looking for current income and willing to accept a higher level of risk. It is not suitable for conservative investors or those seeking long-term capital appreciation.
Summary
The YieldMax BABA Option Income Strategy ETF aims to generate high monthly income by using a covered call strategy on Alibaba stock. It is suitable for income-seeking investors who are comfortable with the volatility and risks associated with BABA and options strategies. The ETF's performance is highly dependent on the performance of BABA. While it offers potential for high income, investors should be aware of the concentration risk. The competitive landscape consists of more diversified covered call strategies that present a lower-risk alternative to BABA.
Similar Companies
JEPI
JPMorgan Equity Premium Income ETF
JEPI
JPMorgan Equity Premium Income ETF
JEPQ
JPMorgan Nasdaq Equity Premium Income ETF
JEPQ
JPMorgan Nasdaq Equity Premium Income ETF
QYLD
Global X NASDAQ 100 Covered Call ETF
QYLD
Global X NASDAQ 100 Covered Call ETF
RYLD
Global X Russell 2000 Covered Call
RYLD
Global X Russell 2000 Covered Call
XYLD
Global X S&P 500® Covered Call ETF
XYLD
Global X S&P 500® Covered Call ETF
Sources and Disclaimers
Data Sources:
- YieldMax ETFs Website
- ETF.com
- Bloomberg
- Morningstar
Disclaimers:
This data is for informational purposes only and should not be considered financial advice. Investing in ETFs involves risk, including the potential loss of principal. Past performance is not indicative of future results.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About YieldMax BABA Option Income Strategy ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund is an actively managed ETF that seeks current income while maintaining the opportunity for exposure to the share price of the common stock of Alibaba Group Holding Limited ("BABA"), subject to a limit on potential investment gains. The fund is non-diversified.
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