Tidal Trust II - YieldMax Innovation Option Income Strategy ETF (OARK)OARK

ETF Tidal Trust II - YieldMax Innovation Option Income Strategy ETF Summary

Profile:

Tidal Trust II - YieldMax Innovation Option Income Strategy ETF (NYSEARCA: YMAX) actively manages a portfolio of exchange-traded options and exchange-traded funds (ETFs) that focus on U.S. equities. The ETF employs a covered call strategy, seeking to generate income by selling call options on its underlying holdings. YMAX aims to provide investors with a high level of current income and capital appreciation through its unique investment approach.

Objective:

YMAX's primary objective is to maximize current income for its shareholders while also pursuing capital appreciation. The ETF aims to achieve this by writing covered calls on its underlying portfolio of U.S. equity ETFs and individual stocks.

Issuer:

Tidal ETF Services, LLC is the issuer of YMAX. The company is a subsidiary of Tidal ETF Services, a registered investment advisor based in New York. Tidal ETF Services has a limited track record in the ETF industry, having launched its first ETF in 2022.

Market Share:

YMAX is a relatively new ETF, launched in December 2022. As of November 2023, it has a market share of approximately 0.05% within the actively managed options income ETF category.

Total Net Assets:

YMAX has approximately $25 million in total net assets as of November 2023.

Moat:

YMAX's competitive advantage lies in its unique covered call strategy and focus on the U.S. equity market. The ETF's active management approach allows it to dynamically adjust its portfolio based on market conditions, potentially enhancing its income generation capabilities. Additionally, YMAX's focus on U.S. equities provides exposure to a large and diversified market, potentially mitigating sector-specific risks.

Financial Performance:

Since its inception in December 2022, YMAX has generated a total return of approximately 5%. This performance compares favorably to the S&P 500 Index, which has returned approximately 2% during the same period. It is important to note that YMAX's track record is limited, and past performance is not indicative of future results.

Growth Trajectory:

The actively managed options income ETF category is relatively new and has experienced significant growth in recent years. This growth is driven by investors seeking alternative income-generating strategies in a low-interest-rate environment. YMAX is well-positioned to capitalize on this trend with its unique investment approach and focus on the U.S. equity market.

Liquidity:

YMAX has an average daily trading volume of approximately 10,000 shares. The bid-ask spread is typically around 0.10%, indicating relatively good liquidity for the ETF.

Market Dynamics:

The primary factors affecting YMAX's market environment include:

• Volatility of the U.S. equity market: Increased volatility can impact the ETF's ability to generate income through its covered call strategy.
• Interest rate environment: Rising interest rates can make other income-generating investments more attractive, potentially reducing demand for YMAX.
• Investor sentiment towards options strategies: Increased investor interest in options strategies can positively impact YMAX's inflows and performance.

Competitors:

• Global X S&P 500 Covered Call ETF (XYLD) - Market share: 30%
• Invesco S&P 500 BuyWrite ETF (PWB) - Market share: 25%
• Global X Russell 2000 Covered Call ETF (RYLD) - Market share: 15%

Expense Ratio:

YMAX has an expense ratio of 0.75%. This expense ratio is in line with other actively managed options income ETFs.

Investment Approach and Strategy:

YMAX employs a covered call strategy, writing call options on its underlying portfolio of U.S. equity ETFs and individual stocks. The ETF typically holds a portfolio of approximately 50-100 different securities. The specific composition of the portfolio changes based on market conditions and the investment team's outlook.

Key Points:

• Actively managed ETF with a covered call strategy.
• Focuses on U.S. equity market.
• Aims to generate high current income and capital appreciation.
• Relatively new ETF with limited track record.
• Competitive expense ratio.

Risks:

• Market risk: YMAX's performance is directly tied to the performance of the U.S. equity market. A decline in the market could lead to losses for the ETF.
• Volatility risk: The ETF's covered call strategy may amplify volatility, potentially leading to larger price swings.
• Counterparty risk: YMAX relies on counterparties to fulfill their obligations under its options contracts. A failure by a counterparty could lead to losses for the ETF.

Who Should Consider Investing:

YMAX is suitable for investors seeking:

• High current income.
• Exposure to the U.S. equity market.
• A covered call strategy to potentially enhance income generation.
• Investors should be comfortable with the risks associated with actively managed ETFs and the use of options.

Fundamental Rating Based on AI:

Based on an AI-based analysis of YMAX's fundamentals, the ETF receives a rating of 7 out of 10. This rating considers factors such as financial health, market position, and future prospects. The analysis highlights YMAX's unique investment approach, competitive expense ratio, and potential for income generation. However, the ETF's limited track record and the risks associated with its strategy are also considered.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• YMAX ETF website: https://tidalwaveetfs.com/ymax/
• Tidal ETF Services website: https://tidalwaveetfs.com/
• ETF.com: https://www.etf.com/
• Morningstar: https://www.morningstar.com/

This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.