The YieldMax SMCI Option Income Strategy ETF announced a weekly dividend distribution on May 21, with a payment of $0.1045 per share under the ticker symbol SMCY. This dividend represents a 20.77% decrease from the previous week's payment of $0.1319. The ex-dividend and record date is May 21, with the payment scheduled for May 22.
The fund, which listed on the NYSE Arca exchange on September 11, 2024, is an actively managed ETF with approximately $120 million in assets under management. Its core strategy is a synthetic covered call approach, generating premium income by selling call option spreads on the stock of SUPER MICRO COMPUTER INC. The strategy also involves holding U.S. short-term Treasury securities, which serve as collateral for the option positions and generate additional interest income. The fund does not invest directly in SMCI stock. Its primary investment objective is to provide investors with consistent weekly income, with a secondary goal of maintaining some degree of participation in the price movements of SMCI.
According to the fund's disclosures, SMCY has a total expense ratio of 0.99%, a 30-day SEC yield of 3.56%, and an annualized distribution rate of approximately 90.13%. It is important to note that a significant portion of past distributions may have consisted of returns of capital. This can reduce the fund's net asset value and trading price over time, and investors should be aware of this associated risk.
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