YieldMax announced the launch of the YieldMax AI Option Income Strategy ETF (AIYY ) on the New York Stock Exchange. AIYY seeks to generate monthly income via a synthetic covered call strategy on C3.ai Inc. (AI).
C3.ai is an enterprise AI software provider for building enterprise-scale AI applications and accelerating digital transformation.
ZEGA Financial actively manages the ETF. AIYY does not invest directly in AI.
The fund’s strategy will cap its potential gains if AI shares increase in value. However, its strategy is subject to all potential losses if AI shares decrease in value. And these losses may not be offset by the income that AIYY receives.
A Growing Suite of ETFs for YieldMax
AIYY is the newest member of the growing suite of the company’s ETFs. Like all the issuer’s ETFs, the fund aims to deliver monthly income to investors.
The company has been relentlessly producing these synthetic covered call strategies tailored for individual stocks (you’ve seen them). Last month, The issuer launched the YieldMax MRNA Option Income Strategy ETF (MRNY ), which seeks to generate monthly income via a synthetic covered call strategy on Moderna, Inc. (MRNA). The firm also listed in October the YieldMax SQ Option Income Strategy ETF (SQY ), which seeks a synthetic covered call strategy on Block Inc. (SQ).
“Income remains a priority heading into 2024,” said VettaFi’s Head of Rresearch Todd Rosenbluth. “YieldMax continues to provide enhanced income opportunities to advisors with exposure to nondividend-paying growth stocks.”
Tidal Financial Group serves as the adviser for all of YieldMax’s ETFs. ZEGA Financial is their subadvisor. All YieldMax ETFs have a gross expense ratio of 0.99%.
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