AMZY vs MSTY: Which Is the Better Pick in 2026?

Overview

AMZY and MSTY are both covered-call ETFs issued by YieldMax that sell call options against a single underlying stock to generate weekly distributions. AMZY writes calls on Amazon (AMZN), while MSTY writes calls on MicroStrategy (MSTR), a company with significant Bitcoin holdings. The funds differ radically in yield, volatility, and the fundamental character of their underlying — one is a mega-cap technology retailer, the other a smaller-cap leveraged crypto play.

How they differ

The most striking difference is yield: MSTY distributes 83.49% annually versus AMZY's 30.87%. This gap reflects MSTR's dramatically higher volatility (beta of 2.56 versus 1.14), which makes call options much more valuable to sell. MSTY is also roughly four times larger by assets under management ($1.01B versus $246M) and inception-lagged AMZY by seven months. Both charge similar expense ratios—0.99% and 1.01%—and both pay weekly, so the real tradeoff is yield versus principal stability and the nature of the underlying business risk.

Who each is best for

• AMZY: Fits investors seeking weekly income from a mega-cap tech holding where they're willing to cap upside in exchange for a 30%+ yield, and who view Amazon's competitive position and scale as a reliable foundation for the covered-call strategy.

• MSTY: Fits investors with a longer time horizon and higher risk tolerance who believe in MicroStrategy's leveraged Bitcoin thesis and are willing to accept extreme volatility (and the possibility of steep drawdowns) in exchange for a yield approaching 84%, understanding that option payouts depend on MSTR's price staying in a callable range.

Key risks to know

• NAV erosion at extreme distribution yields: MSTY's 83.49% distribution rate means the fund is returning more than 2.5x its price in annual payouts. Absent significant gains in the underlying MSTR stock, this math pressures net asset value downward, particularly during periods when Bitcoin or growth-stock sentiment weakens.

• Concentration in a single volatile asset: Both funds own only one stock. AMZY's Amazon exposure means loss of diversification but in a business with durable revenue and profitability. MSTY's MSTR exposure ties it entirely to a company whose value is a leveraged bet on Bitcoin price—a relationship that can decouple from broader equity returns and amplifies both gains and losses.

• Call-cap opportunity cost: Both funds' short call positions limit upside if the underlying rallies sharply. For AMZY, this is a relatively minor drag on a $3.5 trillion market-cap company. For MSTY, missing a Bitcoin boom via its underlying stock may feel costly to investors who bought the fund to benefit from crypto tailwinds.

• Interest-rate and volatility sensitivity: Implied volatility directly affects option premiums. If volatility declines—particularly for MSTR, which is already high-IV—call prices fall, and distributions could compress, squeezing yield and potentially accelerating NAV pressure.

Bottom line

If you prioritize a sustainable, modest income stream from a mega-cap blue chip with less downside volatility, AMZY offers a 30%+ yield on a stable underlying. If you're betting on Bitcoin and willing to accept a single-name, highly volatile crypto proxy in exchange for an ~84% yield, MSTY delivers that trade—but it requires conviction that MSTR's price appreciation will outpace the mechanical pressure of extreme distributions on NAV. Past performance does not predict future results; covered-call yields depend entirely on the continued ability to sell calls at profitable strikes.