Generated July 2026 from current fund data.
Overview
TSLY and YMAX are both YieldMax covered-call ETFs that generate income by selling weekly call options against equity positions, but they differ sharply in scope. TSLY holds Tesla exclusively and delivers the income from calls written on TSLA shares; YMAX holds a diversified basket of YieldMax single-stock option-income ETFs (including TSLY itself), creating a fund-of-funds structure. Both aim for high current yield through systematic options writing, but TSLY concentrates return and risk in one name, while YMAX spreads that risk across multiple underlying single-stock covered-call funds.
How they differ
The most fundamental difference is scope: TSLY is a single-name concentrated position in Tesla, while YMAX is a diversified portfolio of YieldMax option-income ETFs. This makes YMAX less volatile—it has a beta of 1.55 versus TSLY's 1.43, but the latter's concentrated bet means its swings will closely mirror Tesla's larger moves, while YMAX's are smoothed by exposure to multiple underlying stocks.
On yield, TSLY offers 52.72% annually versus YMAX's 46.62%—a spread driven partly by TSLA's higher implied volatility, which makes its calls more valuable to sell. TSLY's higher distribution reflects the fat premium available from writing calls on a single volatile stock; YMAX sacrifices some yield for diversification.
Fees differ modestly: TSLY costs 1.01%, while YMAX charges 1.28%, a 27 basis-point penalty that partly reflects the fund-of-funds structure. YMAX is also far younger (inception January 2024 versus November 2022), so it has less operating history, and carries half TSLY's assets ($420M versus $823M).
Who each is best for
TSLY: Investors comfortable holding a concentrated single-stock position and seeking maximum income from weekly covered-call selling, typically those with high conviction in Tesla and willing to accept the volatility and single-name risk that comes with a 1.43 beta.
YMAX: Investors who want the covered-call income strategy but prefer diversification across multiple underlying equities and lower concentration risk, even if that means accepting a lower distribution rate and higher expense ratio.
Key risks to know
- NAV erosion at extreme yields. Both funds distribute at rates well above 45% annually. TSLY's 52.72% yield suggests distributions likely include substantial return-of-capital treatment, which erodes NAV over time unless underlying TSLA appreciates sharply. YMAX's lower 46.62% yield faces the same pressure, though the diversified basket may help cushion it.
- Concentration and single-stock volatility in TSLY. Tesla's stock price swings are amplified in a single-name fund; TSLY's 1.43 beta means it will swing harder than the market. A sustained decline in TSLA stock price compounds NAV erosion from high distributions.
- Call cap on upside participation. Both funds cap gains by selling calls weekly. If either underlying (TSLA for TSLY, or the broad YieldMax ETF basket for YMAX) rallies sharply, the covered-call overlay limits returns. Investors trade capital appreciation for high current income.
- Fund-of-funds complexity and lag in YMAX. YMAX's structure—holding other YieldMax ETFs that themselves hold options positions—creates an extra layer of fees and tracking friction. Its shorter track record (just over one year) means less historical data on how it behaves across market cycles.
- Implied volatility cliff risk. Both funds depend on elevated implied volatility to generate rich option premiums. If volatility compresses (e.g., if TSLA stabilizes or equity markets become less turbulent), the call premiums shrink, and distributions could fall sharply.
Bottom line
TSLY offers higher current yield from concentrated Tesla exposure; YMAX trades yield for diversification across multiple option-income ETFs. Both distribute at levels that suggest meaningful return-of-capital, so neither should be viewed as perpetual income machines—NAV erosion is embedded in the strategy. If you prioritize maximum income and accept single-stock risk, TSLY's higher yield may appeal; if you want covered-call income with broader exposure and lower volatility, YMAX provides a different risk-return tradeoff. Past performance does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
