At a glance
SPYT charges 0.92% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $161.8M in assets, the 8th largest of that group; it paid 20.85% of its price in distributions over the past 12 months, monthly. Over the past year it returned +11.8% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds.
The short version
Defiance S&P 500 Target Income ETF (SPYT) is an actively managed fund that owns an S&P 500 index fund and sells short-term call option spreads on the index every day. As of August 31, 2026, iShares Core S&P 500 ETF made up 99.76% of its assets. SPYT aims to pay out about 20% of its net asset value a year in monthly distributions. Part of that may be return of capital, and the fund charges 0.92% a year.
Price history
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SPYT +11.8% 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 | |
|---|---|---|---|---|---|---|
| SPYT price data to Oct 27, 2026 | +12.8% | +11.8% | — | — | — | +14.6% |
- Over the year to Oct 27, 2026, SPYT returned +11.8%, 4th of 8 among similar funds.
- Its worst full calendar year was 2025 (+12.5%); its best was 2025 (+12.5%).
- The deepest fall in its price history was 18.2% (Feb 19, 2025 to Apr 8, 2025), recovered by Jul 2, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +12.8% |
| 2025 | +12.5% |
| 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) | $2.6000 | |
| 2025 | $3.7400 |
What's inside
As of Aug 31, 2026, the fund held 1 securities; the ten largest made up 99.76% of assets.
| Fund held | Weight | |
|---|---|---|
| iShares Core S&P 500 ETF | 99.76% |
By country
United States 99.76%By asset type
Stocks 99.76%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $14.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.23%, +0.32%, +2.64%.
How it works
SPYT, from Tidal Financial Group, is an actively managed exchange-traded fund (ETF) aimed at current income. Rather than buying stocks directly, it holds ETFs that track the S&P 500: as of August 31, 2026, the iShares Core S&P 500 ETF (IVV) made up about 99.8% of net assets. Cash or short-term Treasuries back the options trades and earn interest.
Each day, the fund sells a "call spread" on the S&P 500. It sells a call option (a contract that pays the buyer if the index rises past a set "strike" level) near the index's value and buys another at a higher strike, keeping the price difference, or net premium, as income. On August 31, 2026, its two calls had strikes of 7,711.76 and 7,727.95. Gains between the strikes go to the option buyer; the fund keeps gains above the upper strike. Premiums may not offset losses when the index falls.
The options aim for net premiums of about 1.7% a month, supporting a payout target of roughly 20% of net asset value (NAV, the fund's per-share worth) a year, paid monthly. That target is not guaranteed and is not a yield or total return. Payouts above earnings shrink NAV, and future payouts with it. A significant share may be return of capital: investors' own money handed back.
What it really costs
- SPYT charges 0.92% a year, versus an average of 0.86% for the similar funds below (6th of 8, cheapest first).
- Of that, 0.85% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $94 in the first year and $1,131 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SPYT | $94 | $293 | $509 | $1,131 |
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.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
SPYT is built to pay large monthly distributions from S&P 500 exposure, not to grow capital or limit losses.
SPYT launched on March 7, 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 12.5%. Its deepest drop was 18.2%, from February 19 to April 8, 2025. It recovered by July 2, 2025, about 2.8 months later. Option premiums did not stop that fall, so a retiree who sold shares during the slump would have sold at a loss. Income is the main draw. The trailing yield was 20.85% as of October 27, 2026, paid monthly. But payouts above earnings shrink net asset value, and that can lower future payments. The fund costs 0.92% a year, or $94 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and an income plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking large monthly payouts from S&P 500 exposure who accept that part may be return of capital rather than earnings.
- Retirees who value monthly cash flow over long-term growth, and who accept that the fund's call spreads give up some stock gains.
- People holding it in an IRA or similar account, where the ordinary-income tax on option premiums matters less.
Look elsewhere if
- Investors wanting full S&P 500 growth at low cost: SPYT charges 0.92% a year, and its daily call spreads give up some gains.
- Those seeking downside protection: SPYT is not a buffer fund. It takes on S&P 500 losses and fell 18.2% in early 2025.
- Investors who want a long track record or a large fund: SPYT launched in March 2024 and had about $162 million in assets as of August 31, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| SPYT this fund | 0.92% | $161.8M | +11.8% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does SPYT pay monthly dividends?
Yes. SPYT aims to pay distributions every month. Over the 12 months to October 27, 2026, it paid $3.54 per share, a trailing yield of 20.85%. The amounts are not fixed. The prospectus warns that a payment isn't assured in any given month and that amounts may vary greatly. Much of the cash comes from selling options rather than from stock dividends, and part may be return of capital.
Is SPYT's 20% yield sustainable?
It isn't guaranteed. SPYT aims to pay about 20% of its net asset value a year, backed by option premiums of roughly 1.7% a month. The prospectus says this target is not a 20% yield or a 20% total return. When the fund earns less than it pays out, the payouts reduce net asset value. A lower net asset value then means smaller dollar payments later on. Return of capital may make up a large share.
Is SPYT good for retirement income?
It may suit retirees who want large monthly payouts from S&P 500 exposure, but there are trade-offs. It costs 0.92% a year. Its payouts can wear down net asset value, and option income is usually taxed as ordinary income. Its history is short. It launched in March 2024, so it has no record from 2008, 2020 or 2022. It fell 18.2% in early 2025 before recovering by July 2025.
Is SPYT a buffer ETF like BUFR?
No. FT Vest Laddered Buffer ETF (BUFR) is a defined-outcome fund. Buffer funds use options to absorb part of the losses over set periods, in return for a cap on gains. SPYT has no buffer. It takes on S&P 500 losses and sells daily call spreads to generate income. Costs are similar: 0.92% for SPYT and 0.95% for BUFR. Over the year to October 27, 2026, they returned 11.8% and 11.6%.
Are SPYT distributions taxed as qualified dividends?
Mostly not. SPYT earns much of its income from selling options. That income is usually taxed as ordinary income rather than at the lower rates for qualified dividends. Some payouts may be return of capital. In general, return of capital is a return of your own money: it isn't taxed right away, but it lowers your cost basis. The fund's year-end tax forms show how each year's payouts break down.