what is ymax? why is the yield so high?

**YMAX is an actively managed fund-of-funds that invests in shares of other YieldMax ETFs**, and it employs a synthetic covered call strategy to generate income. The underlying ETFs seek to provide current income and capped gains on select securities through this strategy. 1. **High Yield Explanation**: The YieldMax ETFs, including YMAX, offer high dividend yields, which are largely attributed to their use of synthetic covered call strategies. These strategies involve selling call options on assets such as stocks or indices, which allows the fund to receive premium income. The high yield from YMAX is partly an illusion, mainly coming from the return of capital rather than true income, which can erode investment over time. 2. **Yield Appeal**: Despite the risks and the fact that the income is not truly dividend-based, high-yield ETFs like YMAX can be appealing to income-focused investors, especially those seeking regular income streams. The weekly payouts, for instance, can be attractive for investors looking to build income from options income ETFs. In conclusion, YMAX's high yield is a result of its strategic use of synthetic covered call options, which allows the fund to generate income in the form of option premiums. However, it's important to note that this income is not a true dividend and comes with risks, such as the potential for significant share price declines and NAV erosion. YMAX Investment Objective |code|etf code|etf name|Last Price|Last Change|Investment Objective|market_code| |---|---|---|---|---|---|---| |YMAX|YMAX.P|YieldMax Universe Fund of Option Income ETFs|12.83|-2.210366|YMAX is an actively managed fund-of-funds that invests in shares of other YieldMax ETFs. The underlying ETFs seek to provide current income and capped gains on select securities through a synthetic covered call strategy.|169|