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The universe of high-yield, option strategy ETFs continues to explode, with new funds launching every week. Last week, I added three new ETFs to my database. Of the 85 ETFs I am tracking and watching, 33 are less than one year old.Newly launched ETFs typically come with a new approach to the option strategy or the underlying asset. Last week I discussed two newer ETFs that are managed so that they hit a target dividend yield. You can read the article here: The Race for 20% Yields: Can These New ETFs Lead the Pack?In the article, I discuss how the Defiance S&P 500 Income Target ETF (SPYT) and the Defiance Nasdaq 100 Income Target ETF (QQQT) are targeting and paying 20% distribution yields.Now the folks at YieldMax have jumped into the target yield ETF game. The two new ETFs are somewhat surprising. YieldMax is known for the shockingly high (in my opinion) distribution yields on their single-stock and fund-of-funds ETFs. For example, the YieldMax™ Universe Fund of Option Income ETFs (YMAX) and YieldMax™ Magnificent 7 Fund of Option Income ETFs (YMAG) currently yield 86% and 53%, respectively.So, when YieldMax recently launched a pair of target yield ETFs with a target yield of 12%, it piqued my interest. The funds are very new, so we don’t yet have any performance numbers.The YieldMax™ Target 12™ Big 50 Option Income ETF (BIGY) holds a portfolio of the 50 largest U.S. companies by market cap. The fund uses options to establish a synthetic long position in each stock and sells call options on the stocks to generate income. BIGY launched on November 20.The YieldMax™ Target 12™ Semiconductor Option Income ETF (SOXY) uses a covered call strategy and synthetic long trades to get investment exposure to 15 to 30 selected semiconductor companies. SOXY launched on December 2.Tracking and comparing these new funds with the Defiance target income ETFs and other covered call ETFs with similar underlying assets will be fun.More By This Author:Is This Energy Stock Yielding 20% Doomed?
The Race For 20% Yields: Can These New ETFs Lead The Pack?
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