HIMS vs HMYY: Which Is the Better Pick in 2026?

Overview

HIMS is the common stock of Hims & Hers Health, a telehealth and direct-to-consumer pharmaceutical company that does not pay dividends. HMYY is a single-stock options ETF launched in December 2025 that targets weekly income by selling put spreads on HIMS using leverage, wrapped in a collar structure designed to limit downside. The two are fundamentally different vehicles for exposure to the same underlying company: one offers growth-only equity exposure; the other targets high current yield through derivatives overlay.

How they differ

HIMS is straightforward equity: you own the stock and participate in price appreciation or depreciation. HMYY wraps HIMS in an options income strategy, selling put spreads weekly to generate a 81.49% distribution rate, paid out weekly rather than annually. The critical structural difference is that HMYY employs leverage and actively shorts volatility—it sells downside puts to fund upside calls, a dynamic that works when implied volatility stays elevated but erodes NAV if volatility compresses or the underlying falls sharply. HIMS has a beta of 2.342, reflecting high sensitivity to market swings; HMYY's beta of 0.0 reflects the mechanical put-spread hedge but masks the leverage embedded in the position. HMYY charges 1.07% annually and is tiny—$757,645 in AUM as of inception—while HIMS has no expense ratio and is a liquid, widely held stock.

Who each is best for

HIMS: Investors seeking long-term capital appreciation in a high-beta healthcare disruptor and willing to accept significant stock-price volatility without current income. Fits growth-oriented allocations where dividend yield is not a priority and the two-year-plus time horizon can absorb equity-market swings.

HMYY: Investors pursuing weekly income who understand that the high distribution yield depends on the put-spread collar remaining profitable, accept that leverage and options overlay introduce complexity, and are prepared for potential NAV decline if volatility mean-reverts or HIMS falls faster than the collar protects. Fits tactical income allocations where the investor actively monitors option-market conditions and is comfortable with the ETF's short-volatility mechanics.

Key risks to know

• NAV erosion from distribution yield: An 81.49% annualized distribution rate paid weekly is unlikely to be supported by underlying HIMS gains alone. The fund will likely erode NAV over time, returning capital to shareholders unless HIMS appreciates sharply or implied volatility on puts remains exceptionally high.

• Leverage and put-spread mechanics: HMYY sells leveraged put spreads, meaning losses accelerate when HIMS declines. The collar structure (long puts at a lower strike, short puts at a higher strike) limits downside but caps upside; if HIMS rallies, the short call portion of the collar prevents the ETF from capturing gains above a predetermined level.

• Volatility mean reversion: The strategy is profitable when implied volatility is elevated. If volatility compresses—as it often does in stable or rallying markets—the premium collected from selling puts shrinks, and the weekly distribution will likely decline sharply or stop, disappointing income-focused investors who bought in at the current 81.49% rate.

• Leverage blowdown risk: If HIMS gaps down sharply on bad news, the levered short put position could face losses that exceed the collar's protection range, forcing rapid mark-to-market losses on NAV and potentially triggering forced rebalancing or redemptions.

• Liquidity and size risk: HMYY's AUM of $757,645 is extremely small for an ETF. Widening bid-ask spreads, potential forced liquidation if AUM falls further, or issuer discontinuation are material risks, especially if the fund underperforms early in its life cycle.

Bottom line

HIMS is a volatile, non-dividend-paying stock suited to investors betting on growth; HMYY packages that same stock in a weekly options income wrapper that targets high yield through leverage and short volatility. If your priority is income and you understand options mechanics and NAV erosion, HMYY's structure is explicit about its trade-off. If you want pure equity exposure without leverage or the complexity of a derivatives overlay, HIMS is simpler—but neither guarantees returns, and past performance doesn't predict future results.