BIGY, a similar covered-call fund using 50 blue chips, posted 18% gains while MSTY’s distribution fell from $4.42 to $0.22.
The YieldMax MSTR Option Income Strategy ETF (NASDAQ:MSTY) slashed its weekly distribution to $0.22 from a historical $4.42 after a 68% one-year price decline. The fund’s single-stock exposure to MicroStrategy, which fell 74-75%, drove the collapse in net asset value and capped upside from call premiums.
MSTY’s 222.83% trailing yield reflected a shrinking denominator rather than sustainable income. Year-to-date, the fund is down 30.88% in price, with a 1.03% expense ratio and ordinary income tax treatment adding to investor losses.
In contrast, the YieldMax Target 12 Big 50 Option Income ETF (BIGY) targets the same 12% yield using a diversified basket of 50 blue chips, including NVIDIA and Apple. The fund’s implied volatility strategy has delivered 18% price gains without concentrating risk in a single stock.