At a glance
TSMY charges 1.01% a year, below the 1.27% average of the 1 funds most like it. It has $104.4M in assets; it paid 49.05% of its price in distributions over the past 12 months, monthly. Over the past year it returned +38.4% with distributions reinvested.
The short version
YieldMax TSM Option Income Strategy ETF (TSMY) is an actively managed fund that uses options to track the share price of TSM, the Taiwan-based chipmaker, while holding mostly short-term US Treasury bills. It sells call options to fund weekly payouts, with a trailing 12-month yield of 49.05% as of October 27, 2026. The trade-off: it gives up part of TSM's gains, keeps its losses, and some payouts may be return of capital.
Price history
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TSMY +38.4% 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 | |
|---|---|---|---|---|---|---|
| TSMY official prospectus, to Dec 31, 2025 | — | +41.03% | — | — | — | +36.38% |
| TSMY price data to Oct 27, 2026 | +36.8% | +38.4% | — | — | — | +40.0% |
- Over the year to Oct 27, 2026, TSMY returned +38.4%.
- Its worst full calendar year was 2025 (+40.7%); its best was 2025 (+40.7%).
- The deepest fall in its price history was 31.2% (Jan 6, 2025 to Apr 8, 2025), recovered by Jun 24, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +36.8% | — |
| 2025 | +40.7% | +41.03% |
| 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) | $5.9800 | |
| 2025 | $8.8200 |
What's inside
As of Jul 31, 2026, the fund held 5 securities; the ten largest made up 98.31% of assets, and 3.19% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 24.98% | |
| TREASURY BILL Bonds and notes | 23.20% | |
| TREASURY BILL Bonds and notes | 19.50% | |
| TREASURY BILL Bonds and notes | 18.66% | |
| TREASURY BILL Bonds and notes | 11.97% |
By country
United States 98.31%By issuer
US Treasury 98.31%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 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 $13.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +4.91%, +11.63%, -12.03%.
How it works
TSMY does not track an index. It is an actively managed fund from Tidal Financial Group, sold under the YieldMax name, and it is built around a single stock: TSM. The fund does not own TSM shares. Instead, it buys and sells a mix of standard exchange-traded options and FLEX options to create "synthetic" exposure that seeks to follow 100% of TSM's price moves, up and down. FLEX options also trade on an exchange, but their terms, such as the strike price, can be customized. As of July 31, 2026, five US Treasury bill issues made up 98.31% of assets, with an average maturity of about 0.3 years. Cash was 3.19%.
Income comes from selling call options on TSM. The buyer pays the fund a premium for the right to TSM's gains above a set price, called the strike price. The fund keeps the premium but gives up gains above that price until the option expires. The July 31 holdings showed calls expiring within about three weeks, so these positions roll over often. The fund may also use a call spread, which typically adds a purchased call at a higher strike to win back some upside.
The fund aims to pay distributions every week, but the amounts vary and may include return of capital, which lowers the share price. The fund does not switch to a defensive stance in downturns, and it does not receive TSM's dividends.
What it really costs
- TSMY charges 1.01% a year, versus an average of 1.27% for the similar funds below.
- 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 $103 in the first year and $1,236 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TSMY | $103 | $322 | $558 | $1,236 |
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 ties a large payout to one volatile chip stock, has a short record, and its payouts can wear down its share value over time.
TSMY could add a large cash payout tied to one chipmaker, but its record is short. It launched on August 20, 2024, so it has no history in the 2008, 2020 or 2022 sell-offs. Its only full calendar year, 2025, returned 41.03%. Its deepest drop was 31.2%, from January 6 to April 8, 2025. It recovered by June 24, 2025, about 2.5 months later. Anyone who sold shares for spending money during that drop would have locked in losses, and the weekly payouts can vary a lot.
The trailing 12-month yield was 49.05% ($7.19 per share) as of October 27, 2026. Part of that may be return of capital, and repeated payouts can wear down share value over time. The expense ratio is 1.01%, or about $103 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a 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, frequent cash payouts and accept that weekly amounts vary greatly and may partly be a return of their own money.
- Those who want some exposure to TSM in a small slice of a portfolio and can handle volatility of 32.8% over one year (as of October 27, 2026).
- Cost-conscious users of YieldMax funds: TSMY's 1.01% expense ratio is below the 1.27% charged by the YieldMax NVDA fund (NVDY).
Look elsewhere if
- Investors who want diversification. Returns depend on one Taiwan-based chipmaker exposed to chip-industry cycles and to Taiwan–China tensions.
- Investors seeking tax-efficient income. Option income is usually taxed as ordinary income, and the fund doesn't pass along TSM's own dividends.
- Those who want a long track record or all of TSM's rallies. The fund launched in August 2024 and gives up gains above its call strike prices.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| TSMY this fund | 0.3 yrs | 1.01% | $104.4M | +38.4% | — |
| NVDY YieldMax NVDA Option Income Strategy ETF | 0.2 yrs | 1.27% | $1.36B | +15.7% | +57.7% |
Questions investors ask
Does TSMY pay weekly or monthly dividends?
TSMY aims to pay weekly, according to its prospectus filed February 24, 2026. The fund doesn't promise a payout in any given week, and amounts can vary greatly from one payment to the next. Over the 12 months through October 27, 2026, it paid $7.19 per share, a trailing yield of 49.05%. Some of each payout may be classified as return of capital, meaning part of your own investment coming back rather than profit.
Why is TSMY's yield so high?
Most of the payout comes from selling call options on TSM, a volatile stock whose options carry large premiums. A high yield is not the same as high earnings. Part of the payout may be return of capital, and the prospectus warns that repeated payouts can significantly erode the fund's share price over time. A better measure is total return, which counts both payouts and price changes. TSMY's one-year return was 38.4% through October 27, 2026.
Does TSMY own TSM stock?
No. TSMY holds options that give it synthetic exposure to TSM's price moves, plus short-term US Treasury bills. As of July 31, 2026, Treasury bills made up 98.31% of assets, and cash was 3.19%. Because it doesn't own the shares, the fund doesn't receive TSM's dividends, and its shareholders have no voting rights in the company. It still carries most of TSM's risks, including chip-industry swings and tensions between Taiwan and China.
TSMY vs NVDY: what's the difference?
Both are YieldMax option-income funds that use the same kind of strategy, but each is built on a different stock: TSMY on TSM, NVDY on NVDA. So they aren't substitutes for each other. TSMY's expense ratio is 1.01%, compared with 1.27% for NVDY. NVDY is much larger, with about $1.36 billion in net assets versus $104.4 million for TSMY (as of July 31, 2026). Through October 27, 2026, TSMY returned 38.4% over one year and NVDY returned 15.7%.
Is TSMY good for retirement income?
It can produce large cash flow, but it carries high risk for a retirement income source. It depends on one stock, keeps that stock's losses while capping its gains, and fell 31.2% from January to April 2025. It has no record in a long bear market. Its payouts may include return of capital, and option income is usually taxed as ordinary income. It may suit investors who limit it to a small slice of a broader portfolio.