Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.
BABA has lagged BABO over the trailing twelve months, posting a -38.51% total return against -33.32%. Measured from Aug 2024 — the start of shared available history — BABA has compounded at 16.70% a year versus 5.82% for BABO. Figures are total returns: price change plus every distribution reinvested.
Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 9, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Aug 2024” measures every fund from August 8, 2024 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the past year. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the past year) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Distribution rate, SEC yield and return of capital
Metric
BABA
BABO
Forward distribution rate
0.99%
31.47%
Trailing 12-month yield
0.99%
105.18%
30-day SEC yield
—
3.81%
Return of capital
—
0.00%
Total return (price change plus reinvested distributions) is the Total returns section above. Return of capital is the share of a recent distribution that was not income. A 30-day SEC yield can sit far from the headline distribution rate; both numbers are the fund's own published fields.
Side-by-side snapshot
Side-by-side snapshot. Each row is one metric;
each column is one fund.
Actively managed fund that seeks current income while maintaining indirect exposure to the share price of Alibaba Group Holding Limited (BABA), subject to a limit on potential investment gains.
Bottom lineChoose BABA if you want direct ownership of the underlying business, with no fund wrapper or management fee. Choose BABO if you want to maximize current income — roughly 31.47%, generated by selling options premium. There's no free lunch: BABO's payout comes from selling options, which caps upside and can erode the share price over time, while BABA keeps full price exposure.
BABA vs BABO: the stock or a weekly overlay?
BABA is the shares. BABO sells Alibaba upside for weekly cash. Structure is the decision.
BABA
BABO
What you own
Alibaba common stock
BABA plus a YieldMax overlay
Expense ratio
None (common stock)
1.00%
Distribution rate
0.99%
31.47%
How the risk works
Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.
Capped upside and premium dependence. BABO generates income by selling options, which trades away part of a strong rally in exchange for premium. Distributions can include return of capital, and a payout the underlying assets cannot sustain shows up as NAV erosion over time — the big yield number is not free.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
YieldMax is known for specializing in options-based and income-focused ETFs that emphasize yield generation through covered call strategies and other income-producing methodologies. The firm operates a diverse lineup of 63 funds organized across multiple families including covered call strategies, 0DTE (zero days to expiration) options, double distribution approaches, and various target-date and performance-based portfolios designed to generate regular distributions. Notable offerings span popular underlying assets like major technology stocks and broad market indices, with a particular emphasis on providing enhanced income solutions for investors seeking regular cash flows through options strategies and other tactical approaches.
See our curated list of related YouTube videos on BABO.
BABA (Alibaba Group Holding Ltd.) is a stock, while BABO (YieldMax BABA Option Income Strategy ETF) is an ETF — their trading structures differ.
BABO offers the higher yield at 31.47% vs 0.99% for BABA. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
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On a $10,000 investment, BABA would generate roughly $99.00 cash per distribution, while BABO would produce $60.52 cash per distribution, at current distribution rates.
BABA yield0.99%
BABO yield31.47%
Cash diff on $10K$38.48
Cost & efficiency
BABO charges a 1.00% expense ratio — roughly $1,000 over 10 years on $10,000 (simplified, not compounded). BABA is a stock, not a fund, so it charges no expense ratio.
BABO ER1.00%
Strategy & risk
BABA is a stock, while BABO is actively managed around Alibaba (BABA) exposure with a covered call approach.
BABA beta0.463
BABO beta—
Security details
BABA (Alibaba Group Holding Ltd.) is a stock. BABO is managed by YieldMax (launched 08/07/2024) with $13.1M in assets.
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Frequently asked questions
What is the difference between BABA and BABO?
BABA (Alibaba Group Holding Ltd.) is the common stock. It keeps every move in Alibaba's price and distributes 0.99% annual. BABO (YieldMax BABA Option Income Strategy ETF) holds BABA exposure and sells options for a weekly payout — 31.47% as of October 2026. The stock has no expense ratio; BABO charges 1.00%. A higher payout generally means more upside has been sold.
What is the current distribution rate for BABA and BABO?
BABA currently distributes 0.99% and BABO 31.47%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is BABA or BABO better for dividend income?
It depends on your goals. BABO currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
Can I hold both BABA and BABO?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Is BABA or BABO safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: BABO scores 51, BABA scores 50. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.
Which has lower fees, BABA or BABO?
BABO charges a 1.00% expense ratio. BABA is a stock, not a fund, so it has no expense ratio — owning it directly costs nothing in ongoing fund fees.
How much income does $10,000 in BABA vs BABO generate?
At current rates, $10,000 in BABA would generate roughly $99.00 cash per distribution ($99.00 annually). The same in BABO would produce about $60.52 cash per distribution ($3,147.00 annually).
Which has performed better historically, BABA or BABO?
BABA has lagged BABO over the trailing twelve months, posting a -38.51% total return against -33.32%. Measured from Aug 2024 — the start of shared available history — BABA has compounded at 16.70% a year versus 5.82% for BABO. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
Explore related screeners
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Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.
Overview
BABA is a direct equity stake in Alibaba Group Holding Limited, a Chinese e-commerce and cloud-computing conglomerate.
How they differ
BABA and BABO track the same underlying company but deploy fundamentally different strategies. This income differential—roughly 35 percentage points—comes at a structural cost: BABO's call sales cap the price appreciation investors can realize. BABO charges an 1.00% expense ratio and holds $13.1M in assets; BABA incurs no fund-level expenses.
Who each is best for
BABA: Fits investors seeking capital appreciation alongside modest dividend income from a large-cap Chinese technology company, with an extended time horizon and tolerance for geopolitical and regulatory risk in emerging markets.
BABO: Fits investors who prioritize regular, high cash distributions over potential share-price gains, accept capped upside as a tradeoff for income generation, and can tolerate the operational complexity and costs of a derivative-overlay ETF with a small asset base.
Key risks to know
Call cap and missed upside:BABO's covered-call overlay limits the maximum price appreciation an investor can realize, potentially leaving significant gains on the table if BABA rallies sharply. The mechanics and strike-selection process determine how tight that ceiling is and should be reviewed in the fund prospectus. Weekly payouts that exceed underlying capital gains could deplete shareholders' principal, particularly in flat or declining market environments.
Single-stock concentration: Both securities expose investors entirely to Alibaba's business, regulatory, and geopolitical risks. BABA and BABO hold no diversification across issuers or sectors; any adverse development specific to the company or Chinese regulatory treatment affects the entire position.
China regulatory and geopolitical exposure: Alibaba operates in a jurisdiction subject to material regulatory oversight and geopolitical tension. Both holdings carry risk of sudden policy shifts, delisting, or asset freezes that could severely impair value.
Bottom line
If you want direct exposure to Alibaba with upside participation and modest annual income, BABA provides a straightforward structure. If you prioritize high weekly cash flow and are willing to sacrifice potential price gains in exchange, BABO's covered-call strategy delivers that income—but at the cost of an expense ratio, upside cap, and small-fund operational risk. Both concentrate entirely on one company, so the question of conviction in Alibaba's long-term business and regulatory environment matters significantly to either position. Past performance does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
Learn the method
The metrics behind this comparison, explained in the Academy.
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