The YieldMax® Universe Fund of Option Income ETF (YMAX) is an actively managed “fund of funds” designed to be a one-stop-shop for high-potential current income. It achieves this by primarily investing its assets in a basket of other YieldMax® ETFs. Each underlying YieldMax® ETF employs a synthetic covered call strategy on a specific, popular “Underlying Security” (like a major individual stock or another popular ETF) to generate substantial income from option premiums.
Think of YMAX as an income aggregator, simplifying access to a diverse portfolio of synthetic covered call strategies across multiple underlying securities in a single ETF wrapper. Its portfolio is rebalanced monthly to keep the exposure to each underlying YieldMax® ETF equally weighted.
Distribution Information As of: 12/09/2025 | Distribution Rate*: 47.23% | 30-Day SEC Yield**: 85.99% | ROC:* 81.25%
* The most recent distribution on 12/09/2025 contains 81.25% return of capital and 18.75% income. The Distribution Rate is the annual rate an investor would receive if the most recently declared distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by annualizing the Fund’s most recent distribution and dividing the resulting amount by the Fund’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. Distributions are not guaranteed.
** The 30-Day SEC Yield represents net investment income, which excludes option income, earned by the Fund over the 30-Day period ended at the most recent month-end, expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-Day period.
The Distribution Rate and 30-Day SEC Yield are not indicative of future distributions, if any, from the Fund. In particular, future distributions from the Fund may differ significantly from its Distribution Rate or 30-Day SEC Yield. You are not guaranteed a distribution from the Fund. Accordingly, the Distribution Rate and 30-Day SEC Yield will change over time, and such change may be significant.
Previous distributions have included a combination of ordinary dividends, capital gain, and return of investor capital, which may decrease a fund’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment.
Please refer to the 19a-1 notices at here for additional details regarding the distributions’ composition, once available.
Pros and Cons of YieldMax® Universe Fund of Option Income ETF (YMAX)
Pros
High Income Potential: Seeks to generate very high current income, often with weekly distributions, derived from the premiums of the synthetic covered call strategies employed by the underlying ETFs.
Instant Diversification: Provides immediate, equally weighted exposure to a wide range of individual YieldMax® option income ETFs in one ticker, simplifying the investment process.
Simplified Management: Active management handles the monthly rebalancing and maintenance of the diversified portfolio, removing the burden from the individual investor.
Cons
Capped Upside: Due to the options strategy (selling calls), the potential for capital appreciation on the underlying securities is limited or “capped,” meaning YMAX may significantly underperform the price returns of the underlying stocks/ETFs during strong bull markets.
Full Downside Exposure: The fund is subject to potential losses if the underlying securities decrease in value, which the option income may not fully offset, leading to possible erosion of the Net Asset Value (NAV) over time.
High Expense Ratio: The fund has a high gross expense ratio (1.28%) relative to many traditional ETFs, which can significantly eat into total returns.
Tax Implications: Distributions can often be complex, potentially consisting of ordinary income, capital gains, and/or Return of Capital (ROC), which can complicate tax reporting and may not be tax-efficient.
“Fund of Funds” Complexity: The strategy is inherently complex, relying on derivatives (synthetic covered calls) and a fund-of-funds structure, requiring a deep understanding of the risks involved.
Risk Disclosure: All investments discussed on this site are high-risk and speculative. Past performance is not indicative of future results. Consult a licensed financial advisor before making any investment decisions.
The following are links to the ETF companies being analyzed.
Defiance ETFs | REX Shares | Roundhill | YieldMax