Generated August 15, 2026.
Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.
Overview
NVDY and NVII are both options-overlay ETFs built on NVIDIA stock, using synthetic covered call strategies to generate weekly income. NVDY uses a straightforward covered call; NVII layers in a protective put and call spread. The key distinction: NVDY caps upside gains to boost income, while NVII accepts higher beta and steeper fees to preserve more upside participation.
How they differ
NVDY's covered call strategy limits capital appreciation in exchange for a 39.33% distribution rate, while NVII's call spread and protective put structure targets a higher 45.97% yield but with a beta of 1.8933 versus NVDY's 1.36—meaning NVII amplifies NVIDIA's volatility. NVII is also much newer (inception May 2025 versus May 2023) and smaller, with $114M in AUM compared to NVDY's $1.42B. Expense ratios differ by 48 basis points: NVDY charges 1.01% while NVII costs 1.49%.
NVDY's simpler structure and larger asset base may offer better liquidity and lower price-to-NAV tracking error, but NVII's tighter spread strategy and protective put could limit downside more effectively if NVIDIA falls sharply—at the cost of faster NAV erosion if the stock rallies.
Who each is best for
NVDY: Fits investors seeking income from NVIDIA exposure with acceptance that capital gains will be capped, preferring a fund with 18 months of live performance and deeper liquidity.
NVII: Designed for investors willing to pay higher fees and accept higher volatility for the possibility of greater upside capture alongside elevated yields, or those drawn to the protective-put structure as downside insurance.
Key risks to know
* NAV erosion at extreme yields. Both funds distribute north of 39%, implying return-of-capital treatment and gradual principal decay unless NVIDIA's underlying returns exceed the payout rate. At NVII's 45.97% distribution, erosion will likely outpace typical equity returns in low-volatility environments.
* Capped upside and forced rebalancing. NVDY's covered call explicitly limits gains; NVII's call spread does the same but less severely. In a sharp NVIDIA rally, both will underperform direct stock ownership, and weekly rebalancing of options positions can lock in losses or miss tactical reversals.
* Higher beta and volatility amplification. NVII's beta of 1.8933 means it swings nearly twice as hard as NVIDIA on market moves. For a stock already prone to large swings, this magnifies both drawdown risk and whipsaw potential, particularly in a market correction.
* Structure and fund size risk. NVII is a young fund with minimal assets under management; tracking error, bid-ask spreads, and the feasibility of maintaining its strategy during market stress remain untested. NVDY's longer track record and $1.42B AUM provide more historical clarity.
Bottom line
NVDY trades upside for a simpler, larger, more liquid vehicle; NVII pushes yields higher and preserves more capital appreciation at the cost of elevated fees, higher volatility, and unproven operational maturity. If you want predictable income from NVIDIA with minimal complexity, NVDY stands out; if you're chasing maximum current yield and can tolerate beta amplification and a smaller fund, NVII may appeal. Past performance does not guarantee future results, and both funds' option strategies will perform very differently depending on NVIDIA's realized volatility and direction.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
