At a glance
XYZY charges 1.36% a year. It has $44.9M in assets; it paid 77.07% of its price in distributions over the past 12 months, monthly. Over the past year it returned −9.8% with distributions reinvested.
The short version
YieldMax XYZ Option Income Strategy ETF (XYZY) is an actively managed fund. It uses options to follow the share price of one stock, Block, Inc. (ticker XYZ), and sells call options on that stock to generate income. Its trailing 12-month yield was 77.07% as of October 27, 2026. However, part of its payouts may be a return of investors' own money. It also gives up gains above the option strike prices and costs 1.36% a year.
Price history
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XYZY -9.8% 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 | |
|---|---|---|---|---|---|---|
| XYZY official prospectus, to Dec 31, 2025 | — | -28.92% | — | — | — | +11.02% |
| XYZY price data to Oct 27, 2026 | +7.3% | -9.8% | — | — | — | +9.0% |
- Over the year to Oct 27, 2026, XYZY returned -9.8%.
- The deepest fall in its price history was 37.4% (Aug 28, 2025 to Feb 12, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.3% | — |
| 2025 | — | -28.92% |
| 2024 | — | +22.41% |
| 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) | $12.9100 |
What's inside
As of Jul 31, 2026, the fund held 5 securities; the ten largest made up 83.27% of assets, and 3.84% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 28.16% | |
| TREASURY BILL Bonds and notes | 21.18% | |
| TREASURY BILL Bonds and notes | 16.49% | |
| TREASURY BILL Bonds and notes | 14.99% | |
| TREASURY BILL Bonds and notes | 2.46% |
By country
United States 83.27%By issuer
US Treasury 83.27%The bonds mature in 0.2 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 $9.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.70%, +0.11%, +5.47%.
How it works
XYZY does not track an index. Its manager runs a "synthetic covered call" strategy on Block, Inc. In a covered call, an investor owns a stock and sells someone else the right to buy it at a set price, called the strike, in return for an upfront payment, called a premium. XYZY usually does not own Block shares. Instead, it buys and sells call and put options to copy the stock's price moves. Some of these options are standard exchange-traded contracts and some are FLEX options with custom terms. It then sells calls on top for premium income. It may sometimes hold Block shares directly or use swaps.
The rest of the money sits in short-term US Treasury bills. As of July 31, 2026, five Treasury bill issues made up about 83% of $44.9 million in net assets, with an average maturity of about 0.2 years. Cash was 3.84%. The largest option position was a Block call expiring September 18, 2026, worth about 16.9% of assets. Short-dated sold calls expiring July 31, 2026 sat alongside it.
The sold calls limit how much of a Block rally the fund captures, but holders take the full loss when Block falls. The fund does not move into defensive positions in bad markets. Portfolio turnover was 46%.
What it really costs
- XYZY charges 1.36% 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 $138 in the first year and $1,635 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XYZY | $138 | $431 | $745 | $1,635 |
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 income and returns depend on a single volatile stock, Block, Inc., so it fits as a small add-on rather than a foundation.
XYZY could add a large stream of cash payouts tied to Block. The trailing 12-month yield was 77.07% as of October 27, 2026, and the prospectus says the fund aims to pay weekly. Part of those payouts may be return of capital, which hands back investors' own money rather than earnings. Option income is usually taxed as ordinary income. The fund launched in October 2023, so it has no record in the 2008, 2020 or 2022 downturns.
Its worst calendar year was 2025, with a 28.92% loss. Its deepest drop, 37.4% from August 28, 2025 to February 12, 2026, had not been recovered as of October 27, 2026. Anyone selling shares for spending money during such a drop would lock in losses. Costs run 1.36% a year, or $138 in the first year on $10,000 under the SEC example. Past results don't predict the future. A plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want large, frequent cash payouts linked to Block, Inc. and accept giving up gains above the sold call strikes.
- Those using a small satellite slice who can absorb swings like the fund's 34.8% loss in the quarter ended March 31, 2025.
- Holders using tax-advantaged accounts, since option income is usually taxed as ordinary income rather than as qualified dividends.
Look elsewhere if
- Anyone wanting a diversified core holding, because the fund's results depend on one company's stock, Block, Inc.
- Cost-conscious investors. The 1.36% expense ratio adds up to $1,635 over ten years on $10,000 in the SEC example.
- Retirees who need steady principal. The fund's 37.4% drop from August 2025 had not been recovered 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
Is XYZY good for retirement income?
It can pay large amounts of cash, but it is a high-risk way to get income. The trailing 12-month yield was 77.07% as of October 27, 2026. Yet the fund lost 28.92% in 2025 and fell 37.4% from its August 2025 peak. Payouts may include return of capital, and everything depends on one stock, Block. It charges 1.36% a year. It may suit only a small part of a diversified portfolio.
Does XYZY pay weekly dividends?
Its prospectus, filed February 24, 2026, says the fund seeks to make weekly cash distributions. Over the 12 months to October 27, 2026, it paid $17.33 per share. These payouts come mainly from option premiums, not Block dividends. A portion, sometimes a large one, may be classified as return of capital. Payments can vary a lot because they depend on option prices for Block's stock.
Why is XYZY's yield so high?
The yield is high because the fund sells call options on Block, a volatile stock, and volatile stocks bring larger option premiums. The fund's 1-year volatility was 38.1% as of October 27, 2026. A 77.07% yield is not a 77% gain: the fund's 1-year return was -9.8% as of the same date. Part of the payouts may be return of capital, which gives back investors' own money rather than profit.
What's the difference between XYZY and owning Block stock?
Owning XYZY is not the same as owning Block shares. The fund mostly holds Treasury bills and uses options to copy Block's price moves, then sells calls for income. As a result, it captures only part of any rally above the call strikes but takes the full hit when the stock falls. Fund holders have no Block voting rights and generally receive no Block dividends. They also pay a 1.36% expense ratio.
How has XYZY performed since launch?
Results have swung widely. According to its prospectus, the fund returned 22.41% in 2024 and -28.92% in 2025. That works out to an average annual return of 11.02% from its October 2023 launch through December 31, 2025. Its strongest quarter gained 19.27% (ended December 31, 2024), and its weakest lost 34.8% (ended March 31, 2025). In 2026 through October 27, it was up 7.3%.