YieldMax MSFT Option Income Strategy ETF

Frequently Asked Questions About MSFO

What does MSFO invest in?

Tidal Trust II - YieldMax MSFT Option Income Strategy ETF is an exchange traded fund launched and managed by Toroso Investments, LLC. The fund is co-managed by ZEGA Financial, LLC. The fund invests in public equity and fixed income markets of the United States. For its equity portion, it invests through derivatives in stocks of companies operating across information technology, software, services, devices, and solutions sectors. The fund employs long/short strategy and uses derivatives such as options to create its portfolio. It invests in growth and value stocks of companies across diversified market capitalization. For its fixed income portion, the fund invests in short-term U.S. treasury securities. It seeks to benchmark the performance of its portfolio against the S&P 500 Total Return Index. Tidal Trust II - YieldMax MSFT Option Income Strategy ETF was formed on August 24, 2023 and is domiciled in the United States.

What is the expense ratio of MSFO?

YieldMax MSFT Option Income Strategy ETF (MSFO) charges an expense ratio of 1.03%. This is the annual fee deducted from fund assets to cover management and operations.

What is MSFO's distribution yield?

MSFO's trailing-twelve-month yield is 38.00%, 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 MSFO's covered-call strategy work?

MSFO 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.

What is the duration of MSFO?

Effective duration measures MSFO's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. MSFO's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of MSFO?

MSFO's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.