YieldMax SQ Option Income Strategy ETF

Frequently Asked Questions About SQY

What does SQY invest in?

The fund will seek to employ its investment strategy as it relates to SQ regardless of whether there are periods adverse market, economic, or other conditions and will not seek to take temporary defensive positions during such periods. The fund is non-diversified.

What is the expense ratio of SQY?

YieldMax SQ Option Income Strategy ETF (SQY) charges an expense ratio of 1.01%. This is the annual fee deducted from fund assets to cover management and operations.

What is SQY's distribution yield?

SQY's trailing-twelve-month yield is 143.54%, 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 SQY's covered-call strategy work?

SQY 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 SQY?

YieldMax SQ Option Income Strategy ETF (SQY) manages $35.8M 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 SQY actively managed or an index fund?

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