YieldMax AI Option Income Strategy ETF

Frequently Asked Questions About AIYY

What does AIYY invest in?

The YieldMax AI Option Income Strategy ETF (AIYY) operates as an actively managed exchange-traded fund, focused on generating regular weekly income. It achieves this by employing a strategy of selling call options or call spreads on an underlying asset related to artificial intelligence (AI). This approach is designed to both harvest premiums from the option sales and provide investors with exposure to the potential upward movement in the AI asset's price.

What is the expense ratio of AIYY?

YieldMax AI Option Income Strategy ETF (AIYY) charges an expense ratio of 0.99%. This is the annual fee deducted from fund assets to cover management and operations.

What is AIYY's distribution yield?

AIYY's trailing-twelve-month yield is 105.77%, calculated from the sum of distributions over the past year divided by the current price. A rate this high reflects large option-premium distributions against a NAV that has declined over the same period. Part of each payout may be return of capital rather than earned income.

How does AIYY's covered-call strategy work?

AIYY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is AIYY?

YieldMax AI Option Income Strategy ETF (AIYY) manages $50.8M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is AIYY actively managed or an index fund?

AIYY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.