YieldMax Nasdaq 100 0DTE Covered Call Strategy ETF

Frequently Asked Questions About QDTY

What does QDTY invest in?

The YieldMax Nasdaq 100 0DTE Covered Call Strategy ETF (QDTY) is an actively managed exchange-traded fund. Its primary objective is to generate current income for investors, while simultaneously offering exposure to the capital appreciation of the Nasdaq 100 Index. The fund achieves this income generation predominantly by selling out-of-the-money call options that expire on the same day they are written (referred to as “0DTE”), with these options based on the Nasdaq 100 Index or related exchange-traded funds. This strategic approach is crafted to frequently capture premiums from these options, with the ultimate aim of distributing income to shareholders on a weekly basis.

What is the expense ratio of QDTY?

YieldMax Nasdaq 100 0DTE Covered Call Strategy ETF (QDTY) charges an expense ratio of 1.17%. This is the annual fee deducted from fund assets to cover management and operations.

What is QDTY's distribution yield?

QDTY's trailing-twelve-month yield is 38.17%, 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 QDTY's covered-call strategy work?

QDTY 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 QDTY?

YieldMax Nasdaq 100 0DTE Covered Call Strategy ETF (QDTY) manages $27.9M 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 QDTY actively managed or an index fund?

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