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

Overview

AMZY and NVDY are single-stock covered call ETFs issued by YieldMax, each holding one stock (Amazon or NVIDIA) and selling weekly call options against it to generate income. Both offer weekly distributions and charge 1.09% in fees. The key distinction: NVDY pays a 43.35% distribution rate versus AMZY's 33.18%, but that higher yield comes with different underlying volatility and call-writing mechanics tied to each stock's price movement and option market conditions.

How they differ

The biggest difference is yield and underlying volatility. NVDY distributes 43.35% annualized versus AMZY's 33.18%—a 10-percentage-point gap. That reflects NVIDIA's higher implied volatility, which makes call premiums more valuable to sell. NVDY also has substantially more capital behind it: $1.33 billion in AUM versus AMZY's $218 million, which typically means tighter bid-ask spreads and more consistent execution on option sales.

Both funds report a beta of 0.0, which signals that the call-overlay strategy is designed to insulate returns from broad market moves—but this doesn't mean no risk. When the underlying stock rallies hard, call assignments cap gains; when it falls, the sold calls don't offset losses dollar-for-dollar. AMZY's 52-week range ($10.61 to $16.70) is narrower than NVDY's ($12.34 to $18.03), suggesting Amazon has been less volatile—which aligns with its lower yield.

Both charge identical 1.09% expense ratios and distribute weekly, so the practical income receipt cadence is the same.

Who each is best for

AMZY: Investors seeking lower volatility and more modest income who view Amazon as a core holding but want call premiums as a modest sweetener; best suited for taxable accounts where the weekly distributions will be taxed as short-term gains or ordinary income.

NVDY: Income-focused investors comfortable with higher volatility and concentrated single-stock risk who want to harvest elevated option premiums from NVIDIA's optionality; also appropriate for taxable accounts, given distribution frequency and tax treatment.

Key risks to know

• NAV erosion from high yields. Both funds distribute yields well above historical equity returns. Weekly distributions mean frequent return-of-capital treatment is likely, which erodes per-share NAV over time if the underlying stock doesn't appreciate enough to offset it.

• Call assignment and cap on upside. When either stock rallies past the strike price, held shares get called away at a fixed price. Investors miss further gains but keep the premium. This is by design, but it's a hard ceiling on capital appreciation.

• Underlying volatility mismatch. NVDY's higher distribution rate reflects NVIDIA's elevated implied volatility. If that volatility contracts—because of lower demand for chip stocks or a broader risk-off environment—option premiums shrink, and distributions will likely fall sharply.

• Single-stock concentration. Both funds hold one stock. A earnings miss, regulatory action, or sector rotation in semiconductors (NVDY) or cloud/retail (AMZY) has outsized impact. There's no diversification buffer.

• Small AUM for AMZY. At $218 million, AMZY has thin liquidity. Large positions may face wider spreads; the fund is also at higher risk of closure if flows dry up.

Bottom line

If you want steadier income and can tolerate lower yield, AMZY pairs Amazon's relative stability with a more conservative distribution rate. If you're willing to embrace higher volatility in exchange for elevated current income and have conviction in NVIDIA's long-term positioning, NVDY offers meaningfully more cash flow—but at the cost of likely faster NAV erosion and greater downside concentration risk. Both are income plays, not growth plays; past performance doesn't predict future results, and both are best evaluated as tactical income sources, not core holdings.