YieldMax, an ETF issuer known for its option income strategies, rolled out its 36th fund today. The YieldMax Target 12 Semiconductor Option Income ETF is an actively managed product that writes options on the holdings of a portfolio of between 15 and 30 semiconductor stocks. The fund’s ultimate aim is to generate 12% in annual income for shareholders.
ZEGA Financial is SOXY’s subadvisor and manages its portfolio.
The fund holds the underlying stocks of the options it sells. This allows the SOXY to benefit from any upside performance and dividends issued by the holdings. The ETF’s managers select the portfolio holdings based on their liquidity and the liquidity of their options as well as volatility and expectations around price changes. From there, the managers strategically implement options positions to achieve SOXY’s stated goal.
The YieldMax Lineup
The fund pays out the income it generates in monthly distributions. YieldMax expects to announce the first distribution as of January 7, 2025, with any subsequent distributions announced on the first Tuesday of each month.
SOXY has an expense ratio of 0.99%.
The YieldMax lineup consists of ETFs offering different option income strategies that have combined assets of more than $7.2 billion. Its largest fund is the YieldMax NVDA Option Income Strategy ETF (NVDY ), with $1.3 billion in assets.
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