At a glance
MSTY charges 0.99% a year. It has $756.7M in assets; it paid 111.08% of its price in distributions over the past 12 months, monthly. Over the past year it returned −51.1% with distributions reinvested.
The short version
YieldMax MSTR Option Income Strategy ETF (MSTY) is an actively managed fund. It uses options to follow the share price of MicroStrategy Incorporated, which does business as Strategy (MSTR), without owning the stock. It writes call options to earn monthly income, and its trailing yield was 111.08% as of October 27, 2026. The trade-off is that gains are capped while MSTR's losses come through in full. Its deepest drop was 84.6%.
Price history
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MSTY -51.1% 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 | |
|---|---|---|---|---|---|---|
| MSTY price data to Oct 27, 2026 | -7.4% | -51.1% | — | — | — | +0.8% |
- Over the year to Oct 27, 2026, MSTY returned -51.1%.
- Its worst full calendar year was 2025 (-64.2%); its best was 2025 (-64.2%).
- The deepest fall in its price history was 84.6% (Nov 20, 2024 to Jun 26, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -7.4% |
| 2025 | -64.2% |
| 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) | $13.2000 | |
| 2025 | $46.7200 |
What's inside
As of Jul 31, 2026, the fund held 5 securities; the ten largest made up 77.6% of assets.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 28.39% | |
| TREASURY BILL Bonds and notes | 19.69% | |
| TREASURY BILL Bonds and notes | 16.72% | |
| TREASURY BILL Bonds and notes | 9.73% | |
| TREASURY BILL Bonds and notes | 3.06% |
By country
United States 77.6%By issuer
US Treasury 77.6%The bonds mature in 0.1 years on average (weighted by size), with an average coupon of 0%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $227.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -3.75%, -41.84%, +9.49%.
How it works
MSTY's main goal is current income. It also aims to track the price moves of Strategy's common stock (MSTR), with a limit on how much of the gains it keeps. The fund does not own MSTR shares, so holders get no MSTR dividends. The prospectus says the fund sticks to this strategy in bad markets too. It will not move into defensive positions.
To copy MSTR's price, the fund purchases MSTR call options and writes (sells) MSTR put options. Their strike prices are near MSTR's share price, and they last one to six months. Together they give exposure equal to about 100% of MSTR. The fund then writes call options against that exposure and collects premiums, the payments buyers make for the options. It uses both standard exchange-traded options and FLEX options, which allow custom terms. A "call spread" version adds purchased calls and changes where the cap on gains sits.
Short-term Treasury bills back the options and also earn interest. As of July 31, 2026, five T-bills made up 77.6% of the fund's $756.7 million in net assets. Their average maturity was about 0.1 years. MSTR option positions came to a net -4.03%. Each payout lowers the fund's net asset value by the same amount, and the prospectus warns that repeated payouts may wear down the share price over time.
What it really costs
- MSTY charges 0.99% a year.
- Using the prospectus's standard example, $10,000 invested would cost about $101 in the first year and $1,213 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| MSTY | $101 | $315 | $547 | $1,213 |
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
Its large monthly payouts come with single-stock, bitcoin-linked swings and an 84.6% drop that had not recovered, so it could only be a small, high-risk slice.
MSTY's main draw is large monthly payouts. Over the 12 months to October 27, 2026, it paid $15.64 per share, a trailing yield of 111.08%. Those payments can vary greatly, may skip a month, and are usually taxed as ordinary income. The fund launched in February 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its worst calendar year was 2025, with a return of -64.2%. Its deepest drop, 84.6%, ran from November 20, 2024 to June 26, 2026. It had not recovered as of October 27, 2026. Someone who must cash out shares in a bad year could lock in steep losses. Yearly costs are 0.99%, or $101 in the first year on $10,000 under the SEC's standard example. Past results don't predict future ones, and any plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want large monthly payouts and accept that amounts vary greatly and may wear down the share price over time.
- People who want option-based exposure to Strategy (MSTR), and through it bitcoin, as a small, capped-upside slice of a broader portfolio.
- Holders who can live with 70.3% one-year volatility and an 84.6% drop that had not recovered as of October 27, 2026.
Look elsewhere if
- Retirees who need steady income or stable principal: the fund returned -64.2% in 2025, and payouts can change sharply from month to month.
- Investors who want MSTR's full gains or its dividends: the written calls cap the upside, and the fund doesn't own MSTR shares.
- Cost- or tax-conscious investors: the expense ratio is 0.99%, and option income is usually taxed as ordinary income, not as qualified dividends.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
No close alternatives found.
Questions investors ask
Does MSTY pay monthly dividends?
Yes, MSTY aims to pay every month. Over the 12 months to October 27, 2026, it paid $15.64 per share, a trailing yield of 111.08%. The prospectus warns that a payment isn't guaranteed in any given month and that amounts may vary greatly. Payouts may also include a return of your own capital. Each payment lowers the fund's net asset value by the same amount. The income mostly comes from option premiums, which are usually taxed as ordinary income.
Is MSTY the same as owning MSTR stock?
No. MSTY never owns Strategy (MSTR) shares. It uses purchased calls and written puts to copy about 100% of MSTR's price moves. Then it writes calls on top to earn income. As a result, the fund takes MSTR's losses in full but keeps only part of its gains. MSTY holders also get no MSTR dividends or voting rights. An MSTR shareholder gets the stock's full upside but no option income.
Why has MSTY's price fallen so much?
There are two main reasons. First, the fund takes all of MSTR's declines but caps its share of the rebounds, because it has written call options. Second, each large monthly payout lowers its net asset value. The prospectus warns that this can wear down the price over time. MSTY returned -51.1% over the year to October 27, 2026. Its deepest drop was 84.6%, from November 20, 2024 to June 26, 2026, and it had not recovered by October 27.
What does MSTY actually hold?
MSTY mostly holds short-term US Treasury bills plus options on MSTR. As of July 31, 2026, five T-bills made up 77.6% of its $756.7 million in net assets. The largest single bill was 28.4%, and the average maturity was about 0.1 years. Cash was 1.34%. The fund also held 22 MSTR option positions, worth a net -4.03%. These included calls expiring in August and September 2026. The T-bills back the options and earn interest.
Is MSTY good for retirement income?
For most retirement income needs, MSTY carries a lot of risk. Its monthly payouts are large, but they vary and aren't guaranteed. The share price fell 84.6% from its peak and had not recovered as of October 27, 2026. Its one-year volatility was 70.3%. The fund charges 0.99% a year, or $101 in the first year on $10,000 under the SEC's standard example. It may suit investors who limit it to a small, higher-risk slice of their portfolio.