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

Overview

CONY and MSTY are both single-stock covered call ETFs issued by YieldMax that generate income by selling call options on their underlying holdings. CONY writes calls on Coinbase (COIN), a cryptocurrency exchange operator, while MSTY writes calls on MicroStrategy (MSTR), a software and bitcoin-holding company. Both funds distribute weekly and carry expense ratios below 1%, but they differ meaningfully in yield, AUM scale, and the volatility profile of their underlying stocks.

How they differ

The most striking difference is distribution yield: MSTY pays 84.79% annualized versus CONY's 70.49%, a gap driven partly by MSTR's higher implied volatility relative to COIN. MSTY also has substantially larger assets under management at $1.01B compared to CONY's $361M, suggesting stronger investor adoption since its February 2024 inception (versus CONY's May 2023 launch). On risk, MSTY carries a lower beta of 2.5604 relative to CONY's 2.8303, despite its higher yield—a counterintuitive signal that warrants scrutiny given both funds' single-stock exposure and reliance on call-writing to dampen downside volatility.

Who each is best for

• CONY: Fits investors comfortable with concentrated exposure to a pure-play cryptocurrency exchange and willing to accept weekly distributions and cap upside in exchange for meaningful income from a volatile, speculative asset.

• MSTY: Designed for income-focused investors seeking higher distribution yield from a company that combines traditional software revenue with large Bitcoin holdings, with slightly lower measured volatility than CONY's underlying despite comparable single-stock concentration risk.

Key risks to know

• NAV erosion at extreme yields. Both funds distribute well above 60% annually, a level that typically requires substantial return-of-capital treatment to sustain. If COIN or MSTR fail to appreciate sufficiently to offset distributions, NAV will compress over time, eroding capital for long-term holders.

• Single-stock concentration and forced call assignment. Each fund holds only one stock and sells calls against the full position. If the underlying rallies sharply and calls are assigned, the position gets liquidated at the strike—capping upside in bull markets and forcing the fund to restart the strategy at potentially less favorable volatility levels.

• Cryptocurrency-adjacent volatility. While MSTR is technically a software company, both underlying assets derive significant value from Bitcoin and cryptocurrency sentiment. CONY's direct exchange exposure and MSTY's bet on MSTR's Bitcoin holdings create indirect crypto market sensitivity beyond traditional equity risk.

• Call-writing drag in flat or rising markets. Covered calls limit upside participation. In markets where COIN or MSTR rallies without extreme volatility, the weekly call income alone may not offset the opportunity cost of capped appreciation.

Bottom line

If you prioritize current yield and can tolerate concentrated, volatile single-stock exposure, MSTY's 84.79% distribution and larger asset base offer a more established vehicle; if you prefer a smaller, slightly earlier-stage covered call on a pure exchange platform, CONY presents a comparable structure with lower yield. Both funds carry meaningful principal risk from NAV erosion at these distribution levels and from the possibility of call assignment capping long-term capital appreciation. Past performance does not predict future results.