At a glance
PYPY charges 1.31% a year. It has $13.2M in assets; it paid 49.29% of its price in distributions over the past 12 months, monthly. Over the past year it returned −24.8% with distributions reinvested; over three years it returned −2.1% a year.
The short version
YieldMax PYPL Option Income Strategy ETF (PYPY), from Tidal Financial Group, is an actively managed fund that gets exposure to PayPal (PYPL) stock through options rather than shares, keeping most assets in short-term US Treasury bills. It sells call options for income and aims to pay out cash weekly; its yield over the 12 months to October 27, 2026, was 49.29%. The trade-offs: limited gains, full exposure to losses and 1.31% annual expenses.
Price history
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PYPY -24.8% 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 | |
|---|---|---|---|---|---|---|
| PYPY official prospectus, to Dec 31, 2025 | — | -29.52% | — | — | — | +3.53% |
| PYPY price data to Oct 27, 2026 | -6.8% | -24.8% | -2.1% | — | — | -6.2% |
- Over the year to Oct 27, 2026, PYPY returned -24.8%.
- Its worst full calendar year was 2025 (-42.4%); its best was 2024 (+44.2%).
- The deepest fall in its price history was 61.7% (Dec 13, 2024 to Feb 12, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -6.8% | — |
| 2025 | -42.4% | -29.52% |
| 2024 | +44.2% | +44.69% |
| 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) | $11.3600 | |
| 2025 | $15.4500 | -64.5% |
| 2024 | $43.5500 |
What's inside
As of Jul 31, 2026, the fund held 2 securities; the ten largest made up 82.55% of assets, and 2.93% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 74.86% | |
| TREASURY BILL Bonds and notes | 7.69% |
By country
United States 82.55%By issuer
US Treasury 82.55%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 withdrew a net $14.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -8.30%, -4.42%, +28.73%.
How it works
PYPY follows no index. It is actively managed and gets PayPal exposure through options: calls, which gain when a stock rises above a set strike price, and puts, which gain when it falls below. The fund purchases calls and sells puts at the same strike, a pairing that moves roughly like the stock. As of July 31, 2026, that pair was a $50.01 call and put expiring September 18, 2026. About 82.55% of assets sat in two US Treasury bills, which back the options and earn interest.
For income, the fund sells short-dated PayPal call options, collecting a premium (the option's price) but giving up gains above the strike. Because it doesn't own the shares, this is called a synthetic covered call. At times it uses a call spread, adding a purchased call at a higher strike: as of July 31, 2026, it had sold a $58 call and purchased a $61 call, forgoing only the gains between those strikes. If PayPal falls, premiums may not offset the fund's loss.
The prospectus says the fund seeks to pay weekly, though amounts vary and no payout is assured. Some, sometimes much, may be return of capital: your own money handed back. Each payout lowers the share price, which can erode value over time.
What it really costs
- PYPY charges 1.31% a year.
- Of that, 0.99% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $133 in the first year and $1,579 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PYPY | $133 | $415 | $718 | $1,579 |
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 payouts rest on a single stock, PayPal, and it fell 61.7% from its December 2024 peak without recovering by October 27, 2026.
PYPY could add a large cash stream: its yield for the 12 months to October 27, 2026, was 49.29%, and the prospectus says it seeks to pay weekly. Part of that may be return of capital (your own money handed back), and it all hinges on PayPal. Launched September 26, 2023, it has no record from the 2008, 2020 or 2022 downturns. Its worst calendar year, 2025, brought a 29.52% loss, per the prospectus, and it fell 61.7% from December 13, 2024, to February 12, 2026, without recovering as of October 27, 2026. Drawing income or cashing out shares during such a slump could lock in deep losses.
It costs 1.31% a year: $133 in year one and $1,579 over 10 years on $10,000, using the SEC's standard example. Past results don't predict future ones, and a plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking very large, frequent cash payouts tied to PayPal who accept that some may be return of capital rather than earnings.
- Investors willing to trade much of PayPal's upside for option premiums, holding it as a small slice of a broader portfolio.
- Investors using an IRA or similar account, since option income is usually taxed as ordinary income rather than as qualified dividends.
Look elsewhere if
- Investors who can't stomach big drops: the fund fell 61.7% from December 2024 to February 2026 and hadn't recovered by October 27, 2026.
- Cost-conscious investors: its 1.31% expense ratio adds up to $1,579 over 10 years on $10,000 in the SEC's standard example.
- Those wanting diversification or all of PayPal's gains: the fund rests on a single stock and gives up part of any rally.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
No close alternatives found.
Questions investors ask
Does PYPY pay weekly dividends?
It aims to, though nothing is guaranteed. PYPY's prospectus says the fund seeks to pay cash distributions every week and that amounts will likely vary greatly from one payout to the next. Its payouts over the 12 months to October 27, 2026, equaled a yield of 49.29%. Part of any payout may be return of capital, meaning some of your own money handed back, so distributions don't necessarily reflect what the fund earned.
Is PYPY the same as owning PayPal stock?
No. PYPY holds mostly US Treasury bills and uses options to track PayPal's share price, and its prospectus states that an investment in the fund is not an investment in PayPal. Because the fund sells call options, it captures only part of PayPal's gains but remains exposed to its losses, which premiums may not offset. It also charges 1.31% a year. Fund holders have no PayPal voting rights and receive no PayPal dividends unless the fund owns shares directly.
Why is PYPY's yield so high?
Mostly because the fund sells call options on PayPal, a stock the prospectus describes as potentially highly volatile, and options on volatile stocks tend to fetch bigger premiums. Its yield was 49.29% for the 12 months to October 27, 2026. But a high yield isn't a high return: even counting distributions, the fund lost 29.52% in 2025, according to its prospectus. Each payout also lowers the share price, and the prospectus warns repeated payouts may significantly erode its value.
Is PYPY good for retirement income?
PYPY is a high-risk income source, more suited to a small satellite role than to the core of a retirement portfolio. Its payouts are large but variable, may include return of capital and hinge on one stock. It gained 44.69% in 2024 and lost 29.52% in 2025, per its prospectus, and its price fell 61.7% from December 13, 2024, to February 12, 2026, without recovering as of October 27, 2026. Drawing cash during such a slump could lock in losses.
What is PYPY's expense ratio?
PYPY's expense ratio, the annual cost taken from fund assets, is 1.31%, including a 0.99% management fee, according to its prospectus filed February 24, 2026. In the SEC's standard example, which assumes $10,000 invested and a 5% annual return, costs total $133 after one year, $415 after three, $718 after five and $1,579 after 10. The fund is also small, with net assets of $13.19 million as of July 31, 2026.