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

Overview

CONY and NVDY are both single-stock covered-call ETFs from YieldMax that sell weekly call options against their underlying holdings—Coinbase (COIN) and NVIDIA (NVDA), respectively. Both launched in May 2023 and distribute the call premium income weekly. The defining difference is their underlying: CONY captures crypto exposure through a volatile, smaller financial platform; NVDY targets the dominant player in AI chips. This choice drives everything else—yield, risk, and NAV stability.

How they differ

CONY's 70.60% distribution rate dwarfs NVDY's 43.35%, reflecting Coinbase's higher implied volatility and lower absolute share price. That higher yield comes at a cost: CONY's 52-week range of $23.43 to $107.00 shows dramatic price swings, whereas NVDY traded $12.34 to $18.03. Because covered calls cap upside, CONY investors sacrifice exposure to Coinbase rallies in exchange for that hefty income stream—a meaningful tradeoff when the underlying asset is already unpredictable.

Both funds use identical structures (weekly calls, 1.04–1.09% fees, zero reported beta) and share inception dates. NVDY is three times larger by AUM ($1.33 billion vs. $393 million), suggesting more institutional comfort with an AI-chip bet than a cryptocurrency-exchange bet. The expense ratios are nearly identical, so the yield difference reflects pure underlying fundamentals, not fee arbitrage.

Who each is best for

CONY: Income-focused traders with high risk tolerance who believe Coinbase's earnings power justifies weekly distributions, want crypto exposure without direct spot ownership, and expect to hold for months rather than years. Beware: the 70% yield may not survive a multi-year crypto downturn.

NVDY: Conservative-to-moderate income seekers seeking AI exposure with downside dampening and a more stable AUM base. Better suited to accounts where weekly cash flow matters and near-term capital appreciation is a secondary goal. The 43% yield is more credible over longer periods.

Key risks to know

• NAV erosion at extreme yields. CONY's 70% distribution rate suggests significant call premium capture, which can mask underlying losses if Coinbase declines. Distributions may include return-of-capital elements not yet obvious in the fund's brief track record.

• Capped upside from call selling. Both funds are structurally short volatility. If COIN or NVDA rallies sharply, shareholders forfeit gains above the strike price each week—the predictable cost of collecting call premium.

• Single-stock concentration. Each fund is entirely dependent on one company's health and earnings. Sector downturns (crypto for CONY, semiconductors for NVDY) can sink both the underlying and the option market simultaneously, reducing premium availability.

• Call strike risk. If either underlying falls below the weekly call strike, the fund is pinned at a loss and cannot participate in recovery. CONY's wide trading range raises this risk meaningfully.

Bottom line

If you prioritize maximum current income and can tolerate sharp price swings, CONY's 70% yield is hard to ignore—but verify that rate holds through a crypto bear market. If you want a steadier income stream with less concentration risk in a single speculative asset, NVDY's lower yield on a larger, more established company reflects a more conservative engineering. Both sacrifice capital appreciation for cash flow by design; the choice hinges on whether you trust your underlying and can live with being capped.