Generated April 2026 from current fund data.
Overview
ULTY and YMAX are both YieldMax covered-call ETFs that harvest options premiums weekly, but they target different underlying exposures. ULTY writes calls on a basket of high-volatility stocks and yields 67.48% annually; YMAX is a fund of funds that invests in a basket of YieldMax's own single-stock option ETFs and yields 55.96%. Both charge roughly 1.30% in expenses and report zero beta, meaning they're designed to isolate option income from directional equity risk.
How they differ
The biggest difference is scope: ULTY focuses narrowly on high-volatility individual stocks, while YMAX diversifies across multiple YieldMax option-income ETFs—itself a multi-strategy basket. This structural difference explains the yield gap: ULTY's 67.48% distribution rate reflects tighter concentration and more aggressive call writing; YMAX's 55.96% reflects the dilution of spreading premiums across many underlying option strategies.
Second, AUM and price stability diverge sharply. ULTY has $873 million in AUM and traded as high as $64.60 over 52 weeks before dropping to $31.48 (a 51% decline). YMAX's smaller $376 million pool and lower price point ($8.27, from a high of $14.14) suggest it has attracted less capital and experienced less dramatic NAV erosion—though both have fallen substantially from inception. The higher volatility in ULTY's share price hints at concentration risk in its underlying basket.
Third, YMAX's fund-of-funds structure offers implicit diversification of option-writing strategies, whereas ULTY's single-basket approach depends entirely on call premium generation from its chosen high-volatility stocks. Both charge nearly identical expense ratios (1.30% vs. 1.33%), so the cost difference is negligible.
Who each is best for
- ULTY: Investors with high risk tolerance seeking maximum current income from a concentrated bet on high-volatility stock option premiums; best held in a taxable account given weekly distributions, or in an IRA where distribution frequency is irrelevant to tax management.
- YMAX: Income-focused investors who prefer diversification across multiple YieldMax option strategies over single-stock concentration; suitable for those comfortable with a fund-of-funds structure and willing to accept a modestly lower yield for wider exposure.
Key risks to know
- NAV erosion: Both funds show severe price declines from inception. ULTY fell from $64.60 to $31.48 (49% loss); YMAX from $14.14 to $8.27 (42% loss). Distributions at 55–67% annualized can mask or accelerate capital loss if underlying option premium collection weakens.
- Concentration in ULTY: A single-basket strategy writing calls on high-volatility stocks is vulnerable to sector-specific shocks or changes in implied volatility. If IV declines, call premium income contracts, potentially forcing NAV-eroding distributions.
- Options complexity: Both funds rely on continuous call-writing execution. Mispricing or adverse gap moves at call expiration can reduce premium capture or force early assignment at unfavorable levels.
- Fund-of-funds drag in YMAX: Layered expense ratios and structural complexity of investing in other YieldMax option ETFs may dampen returns relative to direct single-stock option strategies over time.
Bottom line
If you're hunting maximum current yield and can tolerate concentration risk and substantial price volatility, ULTY's 67.48% distribution rate comes with higher upside in premium capture—but also steeper downside if option markets shift. If you prefer diversification across multiple option-writing strategies and can accept a lower yield, YMAX's fund-of-funds approach spreads risk, though at the cost of structural complexity. Both have experienced significant NAV declines since inception; neither should be viewed as a buy-and-hold capital preserver. Past performance doesn't predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
