YieldMax XOM Option Income Strategy ETF

Frequently Asked Questions About XOMO

What does XOMO invest in?

XOMO aims to generate monthly income while providing exposure to the price returns of Exxon Mobil Corporation stock (XOM), subject to a cap on potential gains. The fund utilizes a synthetic covered call strategy via standardized exchange-traded and FLEX options, which consists of three elements: i) synthetic long exposure, ii) covered call writing, and iii) US Treasurys for collateral. The synthetic long exposure seeks to replicate the price movements of XOM by purchasing and selling at-the-money calls and puts that have one- to six-month terms. To generate income, the fund writes call options with an expiration of one month or less and a strike price of approximately 0%-15% above XOM's current share price. This limits participation in potential gains if XOM shares increase in value. The short put positions fully expose investors to the downside of the stock. Note: the fund does not invest directly in XOM stocks. Thus, investors are not entitled to any XOM dividends.

What is the expense ratio of XOMO?

YieldMax XOM Option Income Strategy ETF (XOMO) charges an expense ratio of 1.17%. This is the annual fee deducted from fund assets to cover management and operations.

What is XOMO's distribution yield?

XOMO's trailing-twelve-month yield is 35.50%, 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 XOMO's covered-call strategy work?

XOMO 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 XOMO?

YieldMax XOM Option Income Strategy ETF (XOMO) manages $39.9M 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 XOMO actively managed or an index fund?

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