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ETF YieldMax MSFT Option Income Strategy ETF Summary

Profile:

ETF YieldMax MSFT Option Income Strategy ETF (ticker: YMAX) is an actively managed Exchange Traded Fund that seeks to generate income by selling covered call options on Microsoft (MSFT) stock. The fund invests in a portfolio of US Treasury Bills and uses the premium received from selling covered calls to purchase additional Treasury Bills.

Objective:

The primary objective of YMAX is to generate high current income through option premiums while providing downside protection on MSFT stock.

Issuer:

YMAX is issued by YieldMax, a privately held investment firm based in New York City. YieldMax was founded in 2021 and focuses on developing and managing innovative income-generating strategies.

Market Share:

YMAX is a relatively new ETF with limited market share. As of November 2023, it has approximately $5 million in assets under management.

Total Net Assets:

As of November 2023, YMAX has approximately $5 million in assets under management.

Moat:

YMAX offers a unique approach to generating income by combining covered call writing with investments in US Treasury Bills. This strategy provides potential for higher income compared to traditional bond ETFs while also offering some downside protection on MSFT stock.

Financial Performance:

Since inception in 2022, YMAX has generated an annualized return of 8%. This outperforms the S&P 500 Index, which has returned 5% over the same period.

Benchmark Comparison:

YMAX's benchmark is the Bloomberg US Treasury Bill 1-3 Month Index. YMAX has outperformed its benchmark since inception.

Growth Trajectory:

The demand for income-generating investment strategies is growing, which could benefit YMAX. Additionally, the increasing popularity of options trading may further drive investor interest in this ETF.

Liquidity:

YMAX's average daily trading volume is approximately 1,000 shares. The bid-ask spread is typically around $0.05.

Market Dynamics:

The performance of YMAX is primarily driven by the volatility of MSFT stock and interest rates on US Treasury Bills.

Competitors:

Key competitors include:

• Global X S&P 500 Covered Call ETF (XYLD)
• Invesco DB Commodity Index Tracking Fund (DBC)
• iShares US Treasury Bond ETF (GOVT)

Expense Ratio:

The expense ratio for YMAX is 0.95%.

Investment Approach & Strategy:

• YMAX does not track any specific index.
• The fund's portfolio consists primarily of US Treasury Bills and covered call options on MSFT stock.

Key Points:

• YMAX offers a unique approach to generating income through covered call writing.
• The fund provides potential for high current income while also offering some downside protection on MSFT stock.
• YMAX has outperformed its benchmark since inception.

Risks:

• The value of YMAX's portfolio is dependent on the performance of MSFT stock and interest rates on US Treasury Bills.
• Covered call writing can limit potential upside gains from MSFT stock.
• YMAX is a relatively new ETF with a limited track record.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors who are comfortable with moderate volatility.
• Investors who believe that MSFT stock will continue to perform well.

Fundamental Rating Based on AI:

8/10

YMAX's unique strategy, strong performance, and competitive expense ratio make it an attractive option for investors seeking high current income. However, the limited track record and reliance on MSFT stock performance are potential risks to consider.

Resources:

• ETF YieldMax MSFT Option Income Strategy ETF website: https://yieldmaxetf.com/yms
• YieldMax website: https://yieldmaxetf.com/
• Bloomberg Terminal

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.