YieldMax Universe Fund of Option Income ETFs

YMAX

Market cap $1.03B

CHICAGO and MILWAUKEE and NEW YORK, Oct. 14, 2025 (GLOBE NEWSWIRE) -- YieldMax® ETFs today announced distributions for the YieldMax® Group 1 weekly pay ETFs listed in the table below. Group 1 Distribution Announcement Ex.

NEW YORK, Oct. 08, 2025 (GLOBE NEWSWIRE) -- YieldMax® ETFs today announced a significant enhancement to its distribution framework, moving all single stock option income ETFs to a weekly distribution schedule. This shift reflects investor demand for more frequent income opportunities and represents the natural evolution of the YieldMax® product line.

YieldMax's extensive suite of exchange traded funds (ETFs) have a large and dedicated following, and there are a number of reasons for this.

YieldMax Universe Fund of Option Income ETFs announced its lowest-ever weekly distribution, reflecting a shift in strategy and ongoing NAV erosion. YMAX's new approach aims to slow NAV decline by participating more in rallies, but this results in lower distributions and potentially higher costs. YMAX's price has stabilized since April, but this is likely due to broader market rallies rather than just strategy changes.

The YieldMax Universe Fund of Option Income ETFs receives a Sell rating, while the YieldMax Ultra Option Income Strategy ETF is rated Buy. YMAX has outperformed ULTY since ULTY's inception, but its strategy lacks a compelling theme and offers limited diversification, mostly skewed toward tech and crypto. ULTY's dynamic, manager-driven option strategies and use of collars provide more consistent high yields and risk management, making it preferable for income investors.

In recent years, the subject of portfolio growth has taken on a much larger level of importance with younger Millennials to Gen-Z.

YMAX offers a high yield via broad exposure to single-stock covered call ETFs, but suffers from high fees, concentration, and inflexible call selling strategies. Even with reinvested distributions, YMAX's returns aren't meaningfully different than the S&P 500, while exposing investors to much higher volatility and risk. Given our market outlook—expecting sideways or negative movement—YMAX's high-beta holdings are likely to underperform in drawdowns.

I am upgrading YMAX to a strong buy due to improved management strategies that better preserve net asset value while maintaining high income payouts. YMAX's active options strategies and weekly distributions offer a compelling blend of income and total returns, especially in rangebound or moderately rising markets. The fund's recent shift to weekly payouts and enhanced tax efficiency through return of capital distributions make it more attractive for income-focused investors.

YMAX offers extremely high yields (40-70%), and introduces the risk of NAV and distribution erosion. The problem isn't just ROC, but the synthetic long with 0DTE covered calls, which makes returns asymmetric to the underlying. To bridge this asymmetry and achieve competitive returns, it seems that the flows must be completely reinvested in YMAX.

YMAX offers high weekly yields and diversification. However, it suffers from several major structural flaws. We detail what these are and share a better way to invest for high income.