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

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

Profile:

Tidal Trust II - YieldMax Innovation Option Income Strategy ETF (YMAX) is an actively managed exchange-traded fund (ETF) that seeks to generate income and capital appreciation through a combination of option writing and investment in innovative companies. It focuses on the technology sector and utilizes a covered call strategy to generate income.

Objective:

The primary objective of YMAX is to provide investors with a high level of current income and the potential for capital appreciation. It aims to achieve this by investing in a portfolio of innovative companies and writing covered calls on those holdings.

Issuer:

YMAX is issued by Tidal ETF Services, LLC, a boutique asset management firm focused on actively managed thematic ETFs.

Market Share:

YMAX is a relatively new ETF, launched in July 2023, and currently holds a small market share within the technology sector.

Total Net Assets:

As of November 2023, YMAX has approximately $50 million in total net assets.

Moat:

YMAX's competitive advantage lies in its active management approach and focus on innovative companies. The covered call strategy provides a source of income and may help to mitigate downside risk.

Financial Performance:

YMAX has a limited track record, having launched in July 2023. It has generated a positive return since its inception, outperforming the broader technology sector.

Benchmark Comparison:

YMAX's performance is benchmarked against the S&P 500 Technology Sector Index. It has outperformed the index since its inception.

Growth Trajectory:

The long-term growth trajectory of YMAX will depend on the performance of the technology sector and the effectiveness of its investment strategy.

Liquidity:

YMAX has an average daily trading volume of approximately 10,000 shares. The bid-ask spread is tight, indicating good liquidity.

Market Dynamics:

The technology sector is a dynamic and rapidly growing industry. Factors such as technological advancements, economic conditions, and investor sentiment can impact the performance of the sector and YMAX.

Competitors:

YMAX's main competitors include other actively managed technology ETFs, such as the Global X FinTech ETF (FINX) and the iShares Expanded Tech Sector ETF (IGV).

Expense Ratio:

YMAX has an expense ratio of 0.85%.

Investment Approach and Strategy:

YMAX invests in a portfolio of innovative companies across various sub-sectors within the technology industry. It uses a covered call strategy, where it sells call options on its holdings to generate income. The call options give the buyer the right to purchase the underlying shares at a predetermined price on or before a certain date. If the underlying share price rises above the strike price, the call option will be exercised, and YMAX will be obligated to sell its shares. If the share price falls below the strike price, the call option will expire worthless, and YMAX will keep its shares and the premium received for selling the call option.

Key Points:

• Actively managed ETF focused on innovative technology companies.
• Aims to generate income and capital appreciation through covered call strategy.
• Limited track record but has outperformed the benchmark since inception.
• Relatively small market share and total net assets.

Risks:

• Volatility risk: The technology sector is known for its volatility, which can impact the performance of YMAX.
• Covered call strategy risk: The covered call strategy may limit YMAX's potential for capital appreciation if the underlying share price rises above the strike price.
• Market risk: YMAX is subject to the overall market risk and may experience losses due to market downturns.

Who Should Consider Investing:

YMAX is suitable for investors seeking:

• High level of current income.
• Exposure to the technology sector.
• Tolerance for volatility.

Fundamental Rating Based on AI:

Based on an AI-based rating system, YMAX receives a 6 out of 10. This rating considers various factors, including financial health, market position, and future prospects. The rating indicates that YMAX has a solid foundation but faces challenges in terms of market share and limited track record.

Resources and Disclaimers:

This analysis is based on publicly available information as of November 2023. Investors should conduct their own research and due diligence before making any investment decisions. The information provided should not be considered financial advice.