At a glance
MSFY charges 0.99% a year. It has $12.1M in assets; it paid 18.89% of its price in distributions over the past 12 months, monthly. Over the past year it returned −5.7% with distributions reinvested.
The short version
Kurv Yield Premium Strategy Microsoft (MSFT) ETF (MSFY) is an actively managed fund that tracks Microsoft stock mainly through options, backed by short-term U.S. Treasury bills. It aims for current income, partly by selling call options. Its monthly payouts over the 12 months to October 27, 2026, equaled 18.89% of its share price. The trade-offs are capped gains when Microsoft rallies, single-company risk and a 0.99% expense ratio.
Price history
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MSFY -5.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| MSFY official prospectus, to Dec 31, 2025 | — | +14.42% | — | — | — | +14.71% |
| MSFY price data to Oct 27, 2026 | +0.6% | -5.7% | — | — | — | +10.6% |
- Over the year to Oct 27, 2026, MSFY returned -5.7%.
- Its worst full calendar year was 2024 (+13.9%); its best was 2025 (+14.8%).
- The deepest fall in its price history was 35.5% (Oct 28, 2025 to Jun 25, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.6% | — |
| 2025 | +14.8% | +14.42% |
| 2024 | +13.9% | +10.19% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.5000 | |
| 2025 | $4.6600 | +7.4% |
| 2024 | $4.3400 |
What's inside
As of Aug 31, 2026, the fund held 3 securities; the ten largest made up 70.45% of assets.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 27.82% | |
| TREASURY BILL Bonds and notes | 22.36% | |
| TREASURY BILL Bonds and notes | 20.27% |
By country
United States 70.45%By issuer
US Treasury 70.45%The bonds mature in 0.3 years on average (weighted by size), with an average coupon of 0%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $661K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -18.70%, +20.65%, +7.46%.
How it works
MSFY follows no index. Its goal is current income. Under its policy, Microsoft stock or derivatives on Microsoft must make up at least 80% of net assets, with derivatives counted at their full contract (notional) value. Kurv Investment Management mainly uses options rather than shares. These include FLEX options, which are customizable exchange-traded contracts guaranteed by the Options Clearing Corporation. A call option is the right to buy a stock at a set “strike” price by a set date. Buying calls while selling puts at the same strike and expiration creates a “synthetic” position meant to mirror the stock. This exposure may reach 200% of net assets.
Much of the income comes from selling call options. The buyer pays the fund a premium, but if Microsoft climbs past the strike price, the fund gives up gains above it. The managers may also sell “uncovered” calls, meaning more calls than their stock exposure covers, when they judge volatility to be mispriced. These can lose heavily in a sharp rally. No more than 25% of assets may be in over-the-counter contracts with any one counterparty.
The options are backed by bonds. As of August 31, 2026, three U.S. Treasury bills made up 70.45% of assets, with an average of 0.3 years to maturity. That short a maturity means interest-rate changes barely move their prices. Microsoft options were about 28% of assets, mainly calls the fund owned, and the fund held no Microsoft shares directly. The prospectus also allows preferred securities and foreign bonds.
What it really costs
- MSFY charges 0.99% a year.
- Of that, 1.15% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.16% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $101 in the first year and $1,387 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| MSFY | $101 | $351 | $619 | $1,387 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It pays high monthly income, but all of its stock exposure is to one company, Microsoft, and it fell 35.5% from its October 2025 peak.
MSFY launched on October 31, 2023, so it has no record through the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its two full calendar years were both gains, per the prospectus: 10.19% in 2024 (the weaker year) and 14.42% in 2025. But from October 28, 2025, to June 25, 2026, the fund fell 35.5%, and it was still below that peak as of October 27, 2026. A retiree who sold shares for spending near the low would have locked in a large loss.
Its monthly payouts over the 12 months to October 27, 2026, equaled 18.89% of the share price. Much of that came from option premiums, which are usually taxed as ordinary income. The payouts do not protect the share price, and the 0.99% expense ratio is a steady drag. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking monthly income tied to Microsoft, with a trailing yield of 18.89% as of October 27, 2026, who accept capped upside.
- Investors using an IRA or similar tax-deferred account, which shelters its option income (usually taxed as ordinary income) from yearly tax.
- Investors with a firm view on Microsoft who want a small position and can accept large swings (34.3% one-year volatility as of October 27, 2026).
Look elsewhere if
- Investors wanting diversification or a large fund: all stock exposure is Microsoft, and net assets were about $12.1 million as of August 31, 2026.
- Those seeking Microsoft's full upside cheaply: sold call options cap gains in rallies, and expenses run 0.99% a year.
- Investors likely to sell in downturns: it dropped 35.5% from October 2025 to June 2026 and remained below that peak as of October 27, 2026.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
No close alternatives found.
Questions investors ask
Does MSFY pay monthly dividends?
Yes. MSFY pays distributions monthly. Over the 12 months to October 27, 2026, it paid $4.05 per share, a trailing yield of 18.89%. Much of that income comes from selling options on Microsoft. As a result, it is usually taxed as ordinary income rather than at the lower rates for qualified dividends. A high payout does not protect the share price: the fund fell 35.5% from October 28, 2025, to June 25, 2026.
What's the difference between MSFY and owning Microsoft stock?
MSFY gives up part of Microsoft's upside in exchange for monthly income. Owning the stock directly carries no fund fee and captures all of its gains and losses. As of August 31, 2026, MSFY held mostly Treasury bills plus Microsoft options. It sells call options that cap gains in strong rallies and charges 0.99% a year. Much of its payout is option income, usually taxed as ordinary income. Both lose value when Microsoft falls, and option premiums offset only part of a decline.
Is MSFY good for retirement income?
It pays a lot of income but carries high risk for a retirement portfolio. Its monthly payouts over the 12 months to October 27, 2026, equaled 18.89% of the share price. All of its stock exposure is to one company. Its one-year volatility, a measure of how widely returns swing, was 34.3%, and it fell 35.5% between October 2025 and June 2026. It may suit a small, higher-risk slice of a diversified portfolio rather than a core holding.
What is MSFY's expense ratio?
MSFY's expense ratio is 0.99%, according to its prospectus filed September 28, 2026. That is a 1.15% management fee reduced by a 0.16% fee waiver. The SEC's standard example assumes $10,000 invested, a 5% annual return and a sale at the end of each period. On that basis, total costs come to about $101 after one year, $351 after three, $619 after five and $1,387 after ten. Owning Microsoft shares directly carries no fund fee.
How has MSFY performed since launch?
MSFY gained in both of its full calendar years but has struggled since late 2025. Per its prospectus, it returned 10.19% in 2024 and 14.42% in 2025. It averaged 14.71% a year from its October 31, 2023 launch through December 31, 2025. Its strongest quarter gained 24.36% (ended June 30, 2025), and its weakest lost 9.55% (ended March 31, 2025). Based on market prices, it returned -5.7% over the year to October 27, 2026.