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

Overview

AMZY and NVDY are both synthetic covered-call ETFs from YieldMax that generate income through options strategies on single mega-cap tech stocks—Amazon and NVIDIA, respectively. Both use standardized exchange-traded options to create weekly distributions, capping upside in exchange for current yield. The key distinction is the underlying asset and the yield/risk profile that comes with it: AMZY targets Amazon with a 63.58% distribution rate, while NVDY targets NVIDIA with a 39.33% rate.

How they differ

The biggest difference is distribution rate. AMZY yields 63.58% annualized versus NVDY's 39.33%—a gap of more than 2,400 basis points. That reflects Amazon's lower implied volatility and the options market's pricing of call premiums on the two stocks; higher premiums from shorter-dated or tighter call spreads on Amazon translate to higher cash distributions. NVDY has substantially larger assets ($1.42B versus AMZY's $255M), which typically signals stronger investor demand and potentially tighter bid-ask spreads. Both charge 1.01% in expenses and use identical structures, but NVDY's beta of 1.36 is notably higher than AMZY's 1.13, meaning it will amplify market swings—both up and down—more aggressively than its Amazon counterpart.

Who each is best for

AMZY: Fits investors seeking maximum current income from a mega-cap tech position and willing to forgo meaningful capital appreciation for weekly payouts; best matched to investors with high yield needs and shorter time horizons.

NVDY: Fits investors balancing a desire for regular options-based income with more aggressive growth potential; suited to those who want distributions without completely capping upside exposure, and who can tolerate higher volatility.

Key risks to know

• NAV erosion at extreme distribution yields. AMZY's 63.58% annual distribution rate is well above the typical real return of equities. Maintaining distributions at that level over years will likely require regular return-of-capital or NAV decline, especially if Amazon's underlying equity price stagnates or declines.

• Capped gains from synthetic covered calls. Both funds limit upside through short call positions. If Amazon or NVIDIA rally sharply, AMZY and NVDY holders forfeit gains above the strike price, realizing only the premium collected. This is the structural tradeoff for high income, but it can be particularly painful during strong bull markets.

• Single-stock concentration risk. Both funds are entirely dependent on one stock's performance and volatility profile. Adverse news specific to Amazon or NVIDIA—earnings misses, competitive setbacks, regulatory action—directly impacts the fund's value and the sustainability of its distributions.

• Options expiration and roll risk. Weekly distributions rely on continuously rolling call positions. If implied volatility declines sharply or the underlying stock moves unfavorably, future roll premiums may shrink, forcing lower distributions or requiring tighter call strikes that further cap upside.

• Higher beta volatility in NVDY. NVDY's 1.36 beta means its NAV will swing more dramatically with market moves than AMZY's 1.13 beta, increasing the risk of drawdowns during sell-offs—and making it harder to hold the distribution steady in a down market.

Bottom line

If you need maximum yield from a single tech stock and can accept steep NAV pressure from distributions exceeding typical equity returns, AMZY's 63.58% payout is the more aggressive choice; if you want a more moderate income stream with less implied NAV erosion risk and don't mind higher volatility, NVDY's 39.33% yield and larger asset base may feel more sustainable. Both funds cap your upside to fund their distributions, so treat them as income plays, not growth vehicles—past performance doesn't predict future results, and option premiums that fund these payouts fluctuate with volatility and market conditions.