ULTY is an actively managed options-income ETF launched in February 2024. It sells covered calls and credit spreads against a rotating basket of high-volatility stocks, emphasizing sectors such as quantum computing, AI, crypto, and space because their options are expensive. In late 2025, the strategy was overhauled to include lower-volatility large caps, with a warning that future distribution levels may be less predictable. Through mid-May 2026, dividend-reinvested total return is 7.42%. Over the same period, the S&P 500 gained more than 45% on price, and about 50% including dividends. An investor reinvesting ULTY’s weekly distributions would have received far less than a basic index fund.
"YieldMax launched ULTY in February 2024 as an actively managed options-income fund that sells covered calls and credit spreads against a rotating basket of high-volatility names. Quantum computing, AI, crypto, and space dominate its holdings. You don't pick these stocks for stability. You pick them because their options are expensive, and expensive options fund this entire machine."
"In late 2025, after a punishing first eighteen months, YieldMax overhauled the strategy to balance high-volatility equities with lower-volatility large caps, warning shareholders that "future distribution levels may be less predictable". The previous distribution rate was too aggressive to maintain."
"From inception through mid-May 2026, ULTY's dividend-reinvested total return sits at 7.42%. Over the same window, the S&P 500 gained over 45% on price alone, and adding SPY's own dividends pushes it to~50%. An investor who bought ULTY at launch and reinvested every weekly check ended up with roughly one-seventh of what they would have collected in a basic index fund."
Read at 24/7 Wall St.
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