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

Overview

AMZY and NVDY are single-stock covered call ETFs that sell weekly call options against Amazon and NVIDIA holdings, respectively. Both are structured to harvest option premium and distribute the proceeds weekly. The core distinction is their underlying: AMZY tracks Amazon, a lower-volatility megacap retailer and cloud provider, while NVDY tracks NVIDIA, the more volatile semiconductor leader. Both charge 1.01% in expenses and launched within roughly a year of each other in 2023–2024.

How they differ

NVDY's distribution rate of 43.66% towers above AMZY's 32.36%, reflecting NVIDIA's substantially higher implied volatility and the correspondingly richer option premiums the fund can capture each week. NVDY also has a larger asset base at $1.43B versus AMZY's $246M, suggesting greater institutional acceptance and tighter trading spreads. On the flip side, NVDY carries a beta of 1.3 compared to AMZY's 1.1373, meaning it amplifies the underlying stock's moves more aggressively—a natural consequence of NVIDIA's more volatile trading profile. Both funds assess the same 1.01% expense ratio, so the yield gap flows entirely from the options market, not fee structure.

Who each is best for

AMZY: Fits investors drawn to Amazon's business model and market position who want to supplement holdings with steady option income, without chasing the volatility spike that NVIDIA's covered call yields imply.

NVDY: Designed for investors comfortable with semiconductor sector risk and higher equity-like swings, who view NVIDIA's elevated option premiums as compensation for the extra price sensitivity and are willing to accept call assignment risk at higher stock prices.

Key risks to know

• NAV erosion at extreme distribution yields. Both funds distribute well above typical dividend yields; weekly payouts at 32–44% annualized suggest heavy reliance on return-of-capital and synthetic income, which can compress the fund's net asset value over time as the option collar locks in upside gains.

• Call assignment and opportunity cost. Selling weekly calls means positions are routinely called away if the stock rallies. This caps upside and forces re-entry at higher prices, particularly acute for NVDY given NVIDIA's momentum-driven rallies.

• Volatility crush and distribution sustainability. Both funds' yields assume sustained or rising implied volatility in options markets. A sharp drop in IV—common during market calm—shrinks the premium available for distribution, potentially forcing a yield decline.

• Concentration and single-stock risk. Each fund holds exclusively one stock with no diversification, so company-specific shocks (earnings misses, competitive shifts, regulatory action) drive the entire portfolio's return. NVDA's semiconductor cyclicality amplifies this risk for NVDY.

• Beta divergence amplifies downside in corrections. NVDY's beta of 1.3 means it absorbs 30% more downside than the broad market in a sell-off. AMZY's 1.1373 beta softens the blow somewhat, but both still move more than the S&P 500 on the downside.

Bottom line

If you want a covered call strategy on a less volatile megacap with lower distribution expectations, AMZY's 32.36% yield and Amazon exposure align with that profile. If you're specifically bullish on semiconductors and can tolerate the wider price swings that NVIDIA brings, NVDY's 43.66% yield reflects the premium the market assigns to that volatility—but comes with higher call assignment risk and larger portfolio swings. Past performance of either fund's underlying stock does not guarantee future option premium or distribution levels.