Quick Read – NVDY’s distributions have collapsed from $2.62 monthly in March 2024 to roughly $0.10 per week in 2026 as NVIDIA’s volatility moderated and NAV eroded. – NVIDIA surged roughly 24% over the past year and 854% over five years, but NVDY structurally cannot capture…
ose gains because sold calls cap every rally. – NVDY suits income-focused investors who accept a slowly shrinking NAV, but a dividend growth ETF or personally selling covered calls delivers better total returns. – It sounds nuts, but SoFi is giving new active invest users up to $1,000 in stock for a limited time, and all it takes is a $50 deposit to get started. See for yourself (Sponsor) YieldMax NVDA Option Income Strategy ETF (NYSEARCA:NVDY) monetizes NVIDIA’s (NASDAQ:NVDA) volatility through a synthetic covered-call strategy, converting option premiums into weekly cash distributions
The fund once ranked among the highest-yielding listed ETFs, but the critical question is whether those distributions represent durable income or a slow-motion return of your own capital. The answer, based on the May 2026 fact sheet and recent distribution data, is more nuanced than the headline yield suggests. How NVDY Manufactures Its Yield NVDY holds a small slice of NVIDIA stock (11.5% of net assets) and uses options to synthetically replicate exposure, then sells short-dated calls at strikes near NVIDIA’s spot price to harvest premium.
The rest of the portfolio, over 80% in Treasury Bills and a First American Government Obligations money market position, sits as collateral and earns short-term interest. The income you receive blends option premium (which scales with implied volatility) and T-Bill yield. When NVIDIA trades around 40 vol, premiums are rich and distributions swell.