ULTY delivered frequent, substantial cash distributions over the past 12 months while its share-price decline reduced total investor returns. The fund switched to weekly payouts and uses options-trading strategies, often selling covered calls on volatile stock holdings. Holdings include fast-moving names such as IonQ, Rocket Lab USA, Microstrategy, Applovin, Reddit, Oklo and Affirm. The options-based approach generates exceptionally high and frequent distributions; as of August 25, 2025 the ETF advertised an expected annualized distribution rate of 90.82%. The strategy produces real income but introduces significant downside risk that may deter conservative investors.
While past performance doesn't guarantee future results, it's helpful to look back and see how much the YieldMax Ultra Option Income Strategy ETF (NYSEARCA:ULTY) rewarded its investors during the past year. As we'll find out, the cash payouts really added up. The distributions weren't the only factor affecting the bottom line for ULTY's shareholders, however. We can certainly say that the YieldMax Ultra Option Income Strategy ETF's gigantic yield is "real," but there's another side to the story that might dissuade risk-averse investors.
Many of those stocks tend to be fast movers in both directions. Among the stocks in the ULTY ETF's holdings list are IonQ ( NYSE:IONQ), Rocket Lab USA ( NASDAQ:RKLB), Microstrategy ( NASDAQ:MSTR), Applovin ( NASDAQ:APP), Reddit ( NYSE:RDDT), Oklo ( NYSE:OKLO), and Affirm Holdings ( NASDAQ:AFRM). The YieldMax Ultra Option Income Strategy ETF capitalizes on the volatility of the stocks in its holdings list by selling covered call options (among other strategies).
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