ETF Comparison

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

A head-to-head comparison of NVIDIA Corporation and YieldMax NVDA Option Income Strategy ETF covering yield, cost, risk, and income potential.

Data updated July 8, 2026

Bottom lineChoose NVDA if you want broad equity exposure. Choose NVDY if you want to maximize current income — roughly 41.53%, generated by selling options premium. There's no free lunch: NVDY's payout comes from selling options, which caps upside and can erode the share price over time, while NVDA keeps full price exposure.

YieldMax

ETFs60

Total AUM$9.78B

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 NVDY.

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Side-by-side snapshot

	NVDA	NVDY
Full name	NVIDIA Corporation	YieldMax NVDA Option Income Strategy ETF
Issuer	—	YieldMax
Last Close	$196.93 as of July 8, 2026	$12.27 as of July 8, 2026
Distribution yield	0.51%	41.53%
Distribution Safety Score	96	57
Expense ratio	—	1.01%
AUM	—	$1.43B
Distribution frequency	Quarterly	Weekly
Underlying index	—	NVIDIA (NVDA)
Objective	Designs and manufactures graphics processing units (GPUs) and system-on-chip units for gaming, professional visualization, data centers, and automotive markets. A leader in AI infrastructure and accelerated computing.	Covered Call
Asset class	Equity	Equity
Inception date	N/A	05/09/2023
Beta	2.211	1.3
Last dividend	$0.2500	$0.0980
Ex-dividend date	06/04/2026	07/09/2026

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Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

NVDA has outpaced NVDY over the trailing twelve months, posting a 24.62% total return against 22.27%. The lead holds up over 3 years too: NVDA has compounded at 66.80% a year, against 47.96% for NVDY. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	Since May 2023	Volatility	Sharpe	Sortino	Max drawdown
NVDA	4.41%	24.62%	66.80%	84.43%	46.8%	1.00	1.47	-36.9%
NVDY	2.50%	22.27%	47.96%	55.42%	38.3%	0.91	1.26	-34.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 7, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since May 2023” measures every fund from May 11, 2023 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. 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 trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

NVDA (NVIDIA Corporation) is a stock, while NVDY (YieldMax NVDA Option Income Strategy ETF) is an ETF — they take fundamentally different approaches.

NVDY offers the higher yield at 41.53% vs 0.51% for NVDA. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

Deep dive

Yield & income

On a $10,000 investment, NVDA would generate roughly $4.25/month, while NVDY would produce $346.08/month, at current distribution rates.

NVDA yield0.51%

NVDY yield41.53%

Monthly diff on $10K$341.83

Cost & efficiency

Over 10 years on $10,000, NVDA would cost approximately $0 in fees vs $1,010 for NVDY (simplified, not compounded). The $1,010.00 difference may be offset by yield or performance.

NVDA ER—

NVDY ER1.01%

Strategy & risk

NVDA is a stock, while NVDY tracks NVIDIA (NVDA) with a covered call approach. Beta is 2.211 for NVDA and 1.3 for NVDY, indicating NVDY is less volatile relative to the market.

NVDA beta2.211

NVDY beta1.3

Fund details

NVDA is managed by — (launched 01/22/1999) with — in assets. NVDY is managed by YieldMax (launched 05/09/2023) with $1.43B in assets.

NVDA AUM—

NVDY AUM$1.43B

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Frequently asked questions

Is NVDA or NVDY better for dividend income?

It depends on your goals. NVDY 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.

What is the difference between NVDA and NVDY?

NVDA (NVIDIA Corporation) is a stock, while NVDY (YieldMax NVDA Option Income Strategy ETF) tracks NVIDIA (NVDA) with a covered call approach. They are issued by — and YieldMax respectively.

Can I hold both NVDA and NVDY?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, NVDA or NVDY?

NVDA has an expense ratio of — while NVDY charges 1.01%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in NVDA vs NVDY generate?

At current rates, $10,000 in NVDA would generate roughly $4.25 per month ($51.00 annually). The same in NVDY would produce about $346.08 per month ($4,153.00 annually).

Which has performed better historically, NVDA or NVDY?

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NVDA vs NVDY — at a glance

Generated June 2026 from current fund data.

Overview

NVDA is NVIDIA's common stock, a direct ownership stake in the semiconductor company that designs GPUs and system-on-chip units for AI, data centers, gaming, and automotive markets. NVDY is YieldMax's covered-call ETF on NVIDIA—it holds NVDA shares and sells call options against them monthly, distributing the option premium as weekly income. The key distinction: NVDA offers growth exposure with minimal yield; NVDY trades upside potential for substantially higher current income through structured option sales.

How they differ

NVDA is a core equity position with a 0.51% distribution rate and a beta of 2.202, reflecting semiconductor sector volatility and the stock's historical sensitivity to broader market moves. NVDY holds NVDA but caps gains by selling monthly covered calls, reporting a 42.94% distribution rate paid weekly—a 84-fold yield difference that comes from option premium harvesting, not underlying company performance.

The cost of NVDY's income strategy is immediate: a 1.01% annual expense ratio and mandatory NAV erosion when NVDA rallies above the call strike. NVDY's lower beta of 1.3 reflects the dampening effect of short calls; you sacrifice upside participation for income consistency. Since inception in May 2023, NVDY has compounded distributions while NVDA has pursued pure stock appreciation.

Who each is best for

NVDA: Investors seeking exposure to AI infrastructure and semiconductor leadership with a long-term horizon and tolerance for sector volatility. Growth is the primary objective; the modest dividend is incidental.

NVDY: Income-focused investors who own NVDA or want NVIDIA exposure but prefer to trade away potential gains above predictable strike levels in exchange for weekly cash flow and reduced downside swings.

Key risks to know

NAV erosion at extreme distribution yields. NVDY's 42.94% annualized rate is paid through option premium, not underlying earnings growth. If NVDA's stock price stagnates or falls, distributions will compress, and NAV will face downward pressure as the call premium pool shrinks.

Upside cap and assignment risk. When NVDA rallies past the monthly call strike, shares are called away at that price. Investors miss all gains beyond the strike; this is a structural feature, not a bug, but it caps total return in strong bull markets.

Volatility and beta mismatch. NVDA carries a beta of 2.202, meaning it moves roughly twice as fast as the broader market. NVDY's lower beta of 1.3 is synthetic—achieved by capping upside, not by holding less volatile securities. In a sharp downturn, NVDA will fall harder, and NVDY's call premiums will evaporate, leaving income investors with both principal loss and reduced payouts.

Concentration and single-asset risk. Both funds are 100% exposed to NVIDIA. NVDA at least offers diversification within a broader portfolio; NVDY compounds concentration through leverage (holding shares plus selling calls on the same holding).

Options liquidity and reset risk. NVDY's weekly distributions depend on consistent call-selling liquidity and NVIDIA options market depth. Widening bid-ask spreads or gaps in option pricing could affect reinvestment terms.

Bottom line

NVDA suits investors betting on NVIDIA's long-term AI dominance and willing to wait for capital appreciation. NVDY suits those who already own NVDA (or want to) but prefer predictable weekly income over potential stock gains above a predetermined level. The 42.94% yield is real but comes from option decay, not business growth; it's not repeatable if NVIDIA stock flatlines. Past performance doesn't predict future results—the covered-call strategy's success depends entirely on NVIDIA's price staying range-bound or rising modestly, not on NVIDIA's actual earnings trajectory.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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