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

Overview

CONY, MSTY, and NVDY are all synthetic covered call ETFs issued by YieldMax that generate weekly income by selling call options on single stocks—Coinbase, MicroStrategy, and NVIDIA, respectively—without owning the underlying shares directly. They differ sharply in yield (38.80% to 84.37%), underlying volatility (beta 1.36 to 2.83), and the crypto exposure embedded in two of them. All three cap upside gains in exchange for current income.

How they differ

The biggest difference is asset volatility and yield magnitude. MSTY targets MicroStrategy at a 84.37% distribution rate with a beta of 2.56, while NVDY targets NVIDIA at 38.80% yield with a beta of 1.36. CONY sits in the middle on yield (72.20%) but carries the highest beta (2.83), reflecting Coinbase's crypto-linked price swings. Two funds (CONY and MSTY) have crypto-related underlying exposures, introducing sector concentration risk; NVDY offers exposure to a diversified AI-and-semiconductors player. On structure and fees, all three charge nearly identical expense ratios (0.99–1.01%) and distribute weekly, so the distinction lies entirely in the underlying asset's volatility profile and the income cap the call overlay imposes. NVDY is the largest by AUM at $1.41B; MSTY is the newest, having launched in February 2024.

Who each is best for

• CONY: Fits investors seeking high current income from crypto exposure who can tolerate elevated volatility and accept that gains above the call strike will be capped.

• MSTY: Fits investors drawn to MicroStrategy's volatility and leverage to Bitcoin price movements who prioritize yield above 80% and have a high risk tolerance for both options risk and underlying price swings.

• NVDY: Fits investors who want weekly income from semiconductor and AI exposure but prefer lower volatility and more moderate yield than the crypto-linked alternatives, accepting a lower distribution rate in exchange for less dramatic price moves.

Key risks to know

• NAV erosion at extreme yields. MSTY's 84.37% and CONY's 72.20% distribution rates imply significant reliance on return-of-capital treatment; sustaining these payouts through options premiums alone is unlikely, meaning NAV will erode over time if the underlying asset doesn't appreciate enough to offset distributions.

• Call-strike capping and lost upside. Each fund's synthetic call limits gain participation; investors miss appreciation above the strike. With MSTY's higher strike relative to NVIDIA's lower volatility profile (beta 1.36), NVDY is less likely to face this constraint repeatedly, while CONY and MSTY may sacrifice meaningful rallies.

• Concentration and single-stock beta. All three carry idiosyncratic risk from exposure to a single company. CONY and MSTY amplify this through crypto-sector correlation; MSTY's 2.56 beta suggests MicroStrategy price moves will be pronounced and may decouple from traditional equity markets during stress.

• Options market and liquidity risk. These funds depend on the liquidity and pricing integrity of exchange-traded options on their underlying stocks. Extreme volatility, market dislocations, or gaps in options liquidity could impair the fund's ability to execute its strategy at fair prices.

Bottom line

If you're chasing maximum current income and can tolerate high volatility and crypto sector exposure, MSTY stands out; if you want weekly income with lower volatility and broader semiconductor-AI upside, NVDY trades yield for stability. All three cap gains to fund distributions, so the tradeoff is current income versus future price appreciation—not whether these funds preserve capital. Past performance does not predict future results, and distribution rates can change as implied volatility and options pricing shift.