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YieldMax Nvidia Option Income Strategy ETF (NVDY)
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This Nvidia ETF with 97% yield is quietly climbing
Finboldยท 2025-06-19 13:34
Group 1 - Nvidia continues to dominate headlines with its stock performance, while the YieldMax Nvidia Option Income Strategy ETF (NVDY) has gained attention for its income generation rather than price performance [1] - NVDY has paid out $18.51 per share in 2024, resulting in a trailing yield of nearly 97%, and has distributed $5.78 per share in 2025 across six consecutive monthly payouts [2] - NVDY employs a synthetic covered call strategy, combining exposure to Nvidia stock with income from short-dated call options, while investing collateral in short-term Treasurys [3] Group 2 - Nvidia offers a low dividend yield of 0.03%, paying only $0.04 annually per share, which limits passive income for long-term holders [4] - NVDY converts stock volatility into income, providing monthly payouts regardless of Nvidia's price movements, but sacrifices potential upside during significant rallies [5] - In the last five trading sessions, NVDY has rebounded by $0.45 (+2.78%), indicating renewed interest from income-focused investors [6] Group 3 - NVDY is not a direct substitute for Nvidia stock; it is designed for traders prioritizing income consistency over capital gains [8] - The ongoing AI megatrend and the liquidity of NVDA options may allow the ETF to continue generating attractive monthly distributions despite its net asset value lagging [8]