Generated April 2026 from current fund data.
Overview
YMAG and YMAX are both weekly-paying covered call ETFs from YieldMax structured as funds of funds. YMAG focuses exclusively on the Magnificent 7 stocks (Apple, Microsoft, Nvidia, Tesla, Amazon, Alphabet, Meta) through a single-basket approach. YMAX casts a wider net, holding a diversified basket of YieldMax's own options-overlay ETFs across multiple sectors and market caps. The key distinction: YMAG is sector-concentrated, YMAX is sector-diversified—but both distribute yields far above historical equity returns.
How they differ
The biggest difference is breadth. YMAG bets on seven mega-cap growth stocks; YMAX owns a collection of YieldMax's own covered-call funds spanning different indexes and geographies, creating a more heterogeneous portfolio. That concentration shows in the numbers: YMAX's distribution rate is 55.96% versus YMAG's 34.22%, and YMAX's 52-week low of $7.47 sits much closer to its current price ($8.27) than YMAG's $11.47 low is to its $12.84 price, suggesting sharper NAV drawdown in market stress. Expense ratios are nearly identical (1.33% vs. 1.34%), and AUM is comparable, though YMAX edges ahead at $375.7 million. Both began trading in early 2024, so neither has a full-year track record through a complete market cycle.
Who each is best for
- YMAG: Investors bullish on Magnificent 7 upside who are willing to cap gains through covered calls in exchange for weekly income; best suited for taxable accounts where the frequent distributions can offset short-term capital gains tax with return-of-capital treatment if NAV declines materially.
- YMAX: Income-focused investors seeking diversification across multiple covered-call strategies without building a custom fund-of-funds basket themselves; appropriate for investors with high income needs who can tolerate faster NAV erosion in normal market conditions.
Key risks to know
- NAV erosion at extreme yields. YMAX's 55.96% distribution rate far exceeds realistic long-term equity returns, implying steady return-of-capital treatment and NAV decay. YMAG's 34.22% rate is elevated but more defensible if the Mag 7 continue to generate outsized earnings growth.
- Concentration and sector risk. YMAG is entirely dependent on mega-cap tech performance; a sustained decline in that cohort (regulatory headwinds, valuation reset, or profit disappointment) can impair both capital and income. YMAX avoids single-sector concentration but inherits the performance of YieldMax's full lineup, which carries its own tracking and execution risks.
- Options assignment and cap risk. Both funds systematically sell calls to generate income, capping upside if underlying equities rally sharply. In strong bull markets, this drag becomes material—YMAG's beta of 0.0 reflects call assignment more than negative correlation.
- Fund-of-funds fees. YMAX's embedded structure (owning YieldMax ETFs) may impose a fee layer beyond the stated 1.33% expense ratio if the underlying YieldMax funds charge their own fees.
Bottom line
If you're drawn to mega-cap growth and can tolerate capped upside, YMAG offers a focused, lower-distribution approach that still pays weekly. If you prioritize broad diversification and maximum current income—and accept faster NAV erosion—YMAX delivers a higher yield across a wider asset set. Both demand active monitoring for NAV trends; past distributions are not indicative of future results, and neither should be held passively in a buy-and-hold strategy without understanding when—and whether—the income stream relies on price appreciation or principal decay.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
