GraniteShares' YieldBOOST ETFs: A High-Yield Strategy in 2025's Volatile Markets

GraniteShares' YieldBOOST ETFs have emerged as a distinctive corner of the dividend-generating ETF landscape in 2025, offering investors a blend of synthetic option-writing strategies and weekly distributions. These funds, which include products like the YieldBOOST TSLA ETF (TSYY), YieldBOOST PLTR ETF (PLYY), and YieldBOOST Bitcoin ETF (XBTY), are designed to generate income by selling put options on leveraged ETFs tied to volatile assets such as Tesla (TSLA), NVIDIA (NVDA), and BitcoinGraniteShares Announces Weekly Distributions for its YieldBOOST ETFs^[1]. As of September 2025, the suite has attracted over $127 million in assets under management, reflecting growing demand for high-yield alternatives in a low-interest-rate environmentGRANITESHARES YieldBOOST ETFs SURPASSES $120M AUM^[3].

The Mechanics of the Weekly Distribution Model

The YieldBOOST strategy hinges on a structured approach to income generation. By selling put options on leveraged ETFs, these funds collect premium income while capping potential upside gains in the underlying assets. For example, the GraniteShares YieldBOOST PLTR ETF (PLYY) distributed $0.47787 per share on September 26, 2025, with a distribution rate of 100.80% of its net asset value (NAV) adjusted for corporate actionsYieldBoost Distribution Rates | GraniteShares^[2]. Similarly, the YieldBOOST COIN ETF (COYY) reported a staggering 149.02% distribution rate as of September 25, 2025, driven by its exposure to crypto-related assetsGRANITESHARES YieldBOOST ETFs SURPASSES $120M AUM^[3].

However, this model is not without trade-offs. The 30-Day SEC Yield—a regulatory metric that annualizes income—often lags behind the headline distribution rates. For instance, COYY's 30-Day SEC Yield stood at 0.55%, far below its 149.02% distribution rateGRANITESHARES YieldBOOST ETFs SURPASSES $120M AUM^[3]. This discrepancy underscores the importance of understanding how distributions are structured: a significant portion may represent return of capital (ROC) rather than taxable income, which can erode NAV over timeGraniteShares Announces Weekly Distributions for its YieldBOOST ETFs^[1].

Performance and Risk Considerations

While the high distribution rates are enticing, performance data reveals a mixed picture. The YieldBOOST TSLA ETF (TSYY), launched in December 2024, has seen its share price plummet by over 63% as of September 2025, despite offering a 140.36% distribution rateGRANITESHARES YieldBOOST ETFs SURPASSES $120M AUM^[3]. This decline highlights the inherent risks of the strategy: selling put options limits upside potential while exposing investors to downside volatility. If the underlying asset (e.g., TSLA) experiences a sharp decline, the ETF's NAV can erode rapidly, even as distributions continueGraniteShares YieldBOOST TSLA ETF (TSYY) - Stock Analysis^[4].

Third-party analyses corroborate these risks. A report by Dividend Farmer notes that TSYY's price dropped from $24.17 to $8.16 between January and September 2025, a 66% loss, despite its 35% annualized distribution yieldGRANITE -- An Analysis of GraniteShares YieldBOOST Dividend^[5]. This volatility is exacerbated by the leveraged nature of the underlying ETFs, which amplify both gains and losses. For example, the YieldBOOST SPY ETF (YSPY) offers a more moderate 49.17% distribution rate but has maintained a stable 30-Day SEC Yield of 0.77%, reflecting its exposure to the broader S&P 500 indexGRANITESHARES YieldBOOST ETFs SURPASSES $120M AUM^[3].

Expert Perspectives and Market Positioning

GraniteShares' YieldBOOST ETFs have drawn both praise and caution from market analysts. Proponents argue that the weekly distribution model provides a unique solution for income-seeking investors in a market where traditional dividend yields are scarce. As stated by a July 2025 press release from GraniteShares, the funds' strategy of “selling put options to generate premium income while mitigating extreme downside risks” has resonated with investors seeking exposure to high-growth sectors like technology and cryptoGRANITESHARES YieldBOOST ETFs SURPASSES $120M AUM^[3].

Critics, however, emphasize the structural risks. A Yahoo Finance analysis warns that the “non-guaranteed nature of distributions and potential NAV erosion” could deter risk-averse investorsGraniteShares Announces Weekly Distributions for its YieldBOOST ETFs^[1]. Additionally, the expense ratios—such as TSYY's 0.99%—are above average for ETFs, further compounding costs in a declining NAV environmentGraniteShares YieldBOOST TSLA ETF (TSYY) - Stock Analysis^[4].

Conclusion: Balancing Income and Volatility

GraniteShares' YieldBOOST ETFs represent a bold experiment in dividend-generating strategies, leveraging synthetic option-writing to deliver weekly income in volatile markets. For investors with a high-risk tolerance and a focus on income over capital preservation, these funds offer an attractive, albeit complex, proposition. However, the potential for NAV erosion, coupled with the non-guaranteed nature of distributions, necessitates careful due diligence. As 2025 progresses, the success of these ETFs will likely depend on market stability and the ability of underlying assets to avoid prolonged downturns.