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Name
As of 11/08/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
4.5%
1 yr return
6.9%
3 Yr Avg Return
N/A
5 Yr Avg Return
N/A
Net Assets
$18.6 M
Holdings in Top 10
98.6%
Expense Ratio 1.01%
Front Load N/A
Deferred Load N/A
Turnover N/A
Redemption Fee N/A
Standard (Taxable)
N/A
IRA
N/A
Fund Type
Exchange Traded Fund
Name
As of 11/08/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks current income while providing indirect exposure to the share price (i.e., the price returns) of the common stock of The Walt Disney Company (“DIS”), subject to a limit on potential investment gains. The Fund will employ its investment strategy as it relates to DIS regardless of whether there are periods of adverse market, economic, or other conditions and will not take temporary defensive positions during such periods. As further described below, the Fund uses a synthetic covered call strategy to provide income and indirect exposure to the share price returns of DIS, subject to a limit on potential investment gains as a result of the nature of the options strategy it employs. That is, the Fund not only seeks to generate income from its options investments but also aims to derive gains when the value of DIS increases. The Fund’s options contracts provide:
● | indirect exposure to the share price returns of DIS, |
● | current income from the option premiums, and |
● | a limit on the Fund’s participation in gains, if any, of the share price returns of DIS. |
For more information, see sections “The Fund’s Use of DIS Option Contracts” and “Synthetic Covered Call Strategy” below.
The Fund’s investment adviser is Tidal Investments LLC (the “Adviser”) and the investment sub-adviser is ZEGA Financial, LLC (“ZEGA” or the “Sub-Adviser”).
Why invest in the Fund?
● | The Fund seeks to participate in a portion of the gains experienced by DIS. |
● | The Fund seeks to generate monthly income, which is not dependent on the price appreciation of DIS. |
That is, although the Fund may not fully participate in gains in DIS’s stock price, the Fund’s portfolio is designed to generate income.
An Investment in the Fund is not an investment in DIS
● | The Fund’s strategy will cap its potential gains if DIS shares increase in value. |
● | The Fund’s strategy is subject to all potential losses if DIS shares decrease in value, which may not be offset by income received by the Fund. |
● | The Fund does not invest directly in DIS. |
● | Fund shareholders are not entitled to any DIS dividends. |
Additional information regarding DIS is also set forth below.
The Fund’s Use of DIS Option Contracts
As part of the Fund’s synthetic covered call strategy, the Fund will purchase and sell a combination of standardized exchange-traded and FLexible EXchange® (“FLEX”) call and put option contracts that are based on the value of the price returns of DIS.
● | In general, an option contract gives the purchaser of the option contract the right to purchase (for a call option) or sell (for a put option) the underlying asset (like shares of DIS) at a specified price (the “strike price”). |
● | If exercised, an option contract obligates the seller to deliver shares (for a sold or “short” call) or buy shares (for a sold or “short” put) of the underlying asset at a specified price (the “strike price”). |
● | Options contracts must be exercised or traded to close within a specified time frame, or they expire. See the chart in section “Fund Portfolio” below for a description of the option contracts utilized by the Fund. |
Standardized exchange-traded options include standardized terms. FLEX options are also exchange-traded, but they allow for customizable terms (e.g., the strike price can be negotiated). For more information on FLEX options, see “Additional Information about the Funds – Exchange Traded Options Portfolio.”
The Fund’s options contracts are based on the value of DIS, which gives the Fund the right or obligation to receive or deliver shares of DIS on the expiration date of the applicable option contract in exchange for the stated strike price, depending on whether the option contract is a call option or a put option, and whether the Fund purchases or sells the option contract.
Synthetic Covered Call Strategy
In seeking to achieve its investment objective, the Fund will implement a “synthetic covered call” strategy using the standardized exchange-traded and FLEX options described above.
● | A traditional covered call strategy is an investment strategy where an investor (the Fund) sells a call option on an underlying security it owns. |
● | A synthetic covered call strategy is similar to a traditional covered call strategy in that the investor sells a call option that is based on the value of the underlying security. However, in a synthetic covered call strategy, the investor (the Fund) does not own the underlying security, but rather seeks to synthetically replicate 100% of the price movements of the underlying security through the use of various investment instruments. |
The Fund’s synthetic covered call strategy consists of the following three elements, each of which is described in greater detail farther below:
● | Synthetic long exposure to DIS, which allows the Fund to seek to participate in the changes, up or down, in the price of DIS’s stock. |
● | Covered call writing (where DIS call options are sold against the synthetic long portion of the strategy), which allows the Fund to generate income. |
● | U.S. Treasuries, which are used for collateral for the options, and which also generate income. |
1. | Synthetic Long Exposure |
To achieve a synthetic long exposure to DIS, the Fund will buy DIS call options and, simultaneously, sell DIS put options to try to replicate the price movements of DIS. The call options purchased by the Fund and the put options sold by the Fund will generally have one-month to six-month terms and strike prices that are approximately equal to the then-current share price of DIS at the time the contracts are purchased and sold, respectively. The combination of the long call options and sold put options provides the Fund with indirect investment exposure equal to approximately 100% of DIS for the duration of the applicable options exposure.
2. | Covered Call Writing |
As part of its strategy, the Fund will write (sell) call option contracts on DIS to generate income. Since the Fund does not directly own DIS, these written call options will be sold short (i.e., selling a position it does not currently own). The Fund will seek to participate in the share price appreciation of DIS, if any. However, due to the nature of covered call strategies, the Fund’s participation may be subject to a cap (as described below). In this strategy, the call options written (sold) by the Fund will generally have an expiration of one month or less (the “Call Period”) and generally have a strike price that is approximately 0%-15% above the then-current DIS share price.
It is important to note that the sale of the DIS call option contracts will limit the Fund’s participation in the appreciation in DIS’s stock price. If the stock price of DIS increases, the above-referenced synthetic long exposure alone would allow the Fund to experience similar percentage gains. However, if DIS’s stock price appreciates beyond the strike price of one or more of the sold (short) call option contracts, the Fund will lose money on those short call positions, and the losses will, in turn, limit the upside return of the Fund’s synthetic long exposure. As a result, the Fund’s overall strategy (i.e., the combination of the synthetic long exposure to DIS and the sold (short) DIS call positions) will limit the Fund’s participation in gains in the DIS stock price beyond a certain point.
3. | U.S. Treasuries |
The Fund will hold short-term U.S. Treasury securities as collateral in connection with the Fund’s synthetic covered call strategy.
The Fund intends to continuously maintain indirect exposure to DIS through the use of options contracts. As the options contracts it holds are exercised or expire it may enter into new options contracts, a practice referred to as “rolling.” The Fund’s practice of rolling options may result in high portfolio turnover.
Fund’s Monthly Distributions
The Fund will seek to provide monthly income in the form of cash distributions. The Fund will seek to generate such income in the following ways:
● | Writing (selling) call option contracts on DIS as described above. The income comes mainly from the option premiums received from these option sales. A premium, in this context, refers to the price the option buyer pays to the option seller (the Fund) for the rights granted by the option. The amount of these premiums is largely affected by the fluctuations in DIS stock prices. However, other elements like interest rates can also influence the income level. |
● | Investing in short-term U.S. Treasury securities. The income generated by these securities will be influenced by interest rates at the time of investment. |
Fund’s Return Profile vs DIS
For the reasons stated above, the Fund’s performance will differ from that of DIS’s stock price. The performance differences will depend on, among other things, the price of DIS, changes in the value of the DIS options contracts the Fund holds, and changes in the value of the U.S. Treasuries.
Fund Portfolio
The Fund’s principal holdings are described below:
YieldMax™ DIS Option Income Strategy ETF – Principal Holdings | ||
Portfolio Holdings (All options are based on the value of DIS) | Investment Terms | Expected Target Maturity |
Purchased call option contracts | “at-the-money” (i.e., the strike price is equal to the then-current share price of DIS at the time of purchase) to provide indirect exposure to positive price returns of DIS. If the DIS share price increases, these options will generate corresponding increases to the Fund. | 1-month to 6-month expiration dates |
Sold put option contracts | “at-the-money” (i.e., the strike price is equal to the then-current share price of DIS at the time of sale). They are sold to help pay for the purchased call options described above. However, the sold put option contracts provide exposure to the full extent of any share price losses experienced by DIS. | 1-month to 6-month expiration dates |
Sold (short) call option contracts | The strike price is approximately 0%-15% more than the then-current share price of DIS at the time of sale. They generate current income. However, they also limit some potential positive returns that the Fund may have otherwise experienced from gains in the DIS share price. | 1-month or less expiration dates |
U.S Treasury Securities and Cash | Multiple series of U.S. Treasury Bills supported by the full faith and credit of the U.S. government. These instruments are used as collateral for the Fund’s derivative investments. They will also generate income. | 6-month to 2-year maturities |
The market value of the cash and treasuries held by the Fund is expected to be between 50% and 100% of the Fund’s net assets and the market value of the options package is expected to be between 0% and 50% of the Fund’s net assets. In terms of notional value, the combination of these investment instruments provides indirect investment exposure to DIS equal to at least 100% of the Fund’s total assets.
The Fund is classified as “non-diversified” under the 1940 Act.
There is no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment.
The Walt Disney Company (“DIS”)
DIS is a diversified worldwide entertainment company with operations in two segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). DIS is listed on the New York Stock Exchange. Per DIS’ most recent Form 10-K filing, the aggregate market value of common stock as of April 30, 2023 held by non-affiliates of DIS was approximately $182.9 billion.
DIS is registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Information provided to or filed with the SEC by DIS pursuant to the Exchange Act can be located by reference to the SEC file number 001-38842 through the SEC’s website at www.sec.gov. In addition, information regarding DIS may be obtained from other sources including, but not limited to, press releases, newspaper articles and other publicly disseminated documents.
This document relates only to the securities offered hereby and does not relate to DIS or other securities of DIS. The Fund has derived all disclosures contained in this document regarding DIS from the publicly available documents. None of the Fund, the Trust, the Adviser, the Sub-Adviser, or their respective affiliates has participated in the preparation of such publicly available offering documents or made any due diligence inquiry regarding such documents with respect to DIS. None of the Fund, the Trust, the Adviser, the Sub-Adviser, or their respective affiliates makes any representation that such publicly available documents or any other publicly available information regarding DIS is accurate or complete. Furthermore, the Fund cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of DIS (and therefore the price of DIS at the time we price the securities) have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning DIS could affect the value received with respect to the securities and therefore the value of the securities.
None of the Fund, the Trust, the Adviser, the Sub-Adviser, or their respective affiliates makes any representation to you as to the performance of DIS.
THE FUND, TRUST, ADVISER, AND SUB-ADVISER ARE NOT AFFILIATED WITH DIS.
Due to the Fund’s investment strategy, the Fund’s investment exposure is concentrated in (or substantially exposed to) the same industry as that assigned to DIS. As of the date of the Prospectus, DIS is assigned to the entertainment industry.
Period | DISO Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 4.5% | N/A | N/A | N/A |
1 Yr | 6.9% | N/A | N/A | N/A |
3 Yr | N/A* | N/A | N/A | N/A |
5 Yr | N/A* | N/A | N/A | N/A |
10 Yr | N/A* | N/A | N/A | N/A |
* Annualized
Period | DISO Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | N/A | N/A | N/A | N/A |
2022 | N/A | N/A | N/A | N/A |
2021 | N/A | N/A | N/A | N/A |
2020 | N/A | N/A | N/A | N/A |
2019 | N/A | N/A | N/A | N/A |
Period | DISO Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 4.5% | N/A | N/A | N/A |
1 Yr | 6.9% | N/A | N/A | N/A |
3 Yr | N/A* | N/A | N/A | N/A |
5 Yr | N/A* | N/A | N/A | N/A |
10 Yr | N/A* | N/A | N/A | N/A |
* Annualized
Period | DISO Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | N/A | N/A | N/A | N/A |
2022 | N/A | N/A | N/A | N/A |
2021 | N/A | N/A | N/A | N/A |
2020 | N/A | N/A | N/A | N/A |
2019 | N/A | N/A | N/A | N/A |
DISO | Category Low | Category High | DISO % Rank | |
---|---|---|---|---|
Net Assets | 18.6 M | N/A | N/A | N/A |
Number of Holdings | 9 | N/A | N/A | N/A |
Net Assets in Top 10 | 21.8 M | N/A | N/A | N/A |
Weighting of Top 10 | 98.57% | N/A | N/A | N/A |
Weighting | Return Low | Return High | DISO % Rank | |
---|---|---|---|---|
Bonds | 100.15% | N/A | N/A | N/A |
Cash | 2.01% | N/A | N/A | N/A |
Stocks | 0.00% | N/A | N/A | N/A |
Preferred Stocks | 0.00% | N/A | N/A | N/A |
Convertible Bonds | 0.00% | N/A | N/A | N/A |
Other | -2.15% | N/A | N/A | N/A |
Weighting | Return Low | Return High | DISO % Rank | |
---|---|---|---|---|
Cash & Equivalents | 0.58% | N/A | N/A | N/A |
Securitized | 0.00% | N/A | N/A | N/A |
Corporate | 0.00% | N/A | N/A | N/A |
Municipal | 0.00% | N/A | N/A | N/A |
Government | 0.00% | N/A | N/A | N/A |
Derivative | -2.15% | N/A | N/A | N/A |
Weighting | Return Low | Return High | DISO % Rank | |
---|---|---|---|---|
US | 100.15% | N/A | N/A | N/A |
Non US | 0.00% | N/A | N/A | N/A |
DISO Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.01% | N/A | N/A | N/A |
Management Fee | 0.99% | N/A | N/A | N/A |
12b-1 Fee | N/A | N/A | N/A | N/A |
Administrative Fee | N/A | N/A | N/A | N/A |
DISO Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | N/A | N/A | N/A |
Deferred Load | N/A | N/A | N/A | N/A |
DISO Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | N/A | N/A | N/A |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
DISO Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | N/A | N/A | N/A | N/A |
DISO | Category Low | Category High | DISO % Rank | |
---|---|---|---|---|
Dividend Yield | 37.99% | N/A | N/A | N/A |
DISO | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Monthly |
DISO | Category Low | Category High | DISO % Rank | |
---|---|---|---|---|
Net Income Ratio | N/A | N/A | N/A | N/A |
DISO | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency |
Date | Amount | Type |
---|---|---|
Oct 24, 2024 | $0.515 | OrdinaryDividend |
Sep 06, 2024 | $0.464 | OrdinaryDividend |
Aug 07, 2024 | $0.393 | OrdinaryDividend |
Jul 05, 2024 | $0.365 | OrdinaryDividend |
Jun 06, 2024 | $0.442 | OrdinaryDividend |
May 06, 2024 | $0.706 | OrdinaryDividend |
Apr 04, 2024 | $0.680 | OrdinaryDividend |
Mar 06, 2024 | $0.772 | OrdinaryDividend |
Feb 07, 2024 | $0.305 | OrdinaryDividend |
Jan 05, 2024 | $0.564 | OrdinaryDividend |
Dec 07, 2023 | $0.423 | OrdinaryDividend |
Nov 08, 2023 | $0.723 | OrdinaryDividend |
Oct 06, 2023 | $0.264 | OrdinaryDividend |
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