NVIDIA Yield Shares ETF: A High-Yield Gem with Growth Potential

In a market where income and growth often pull investors in opposite directions, the NVIDIA Yield Shares Purpose ETF (YNVD:CA) emerges as a rare hybrid opportunity. With a CAD 0.75 monthly dividend, a GuruFocus valuation suggesting a 167.53% upside, and analyst consensus backing a 69.93% price target rise, YNVD combines robust income potential with compelling long-term fundamentals. Let's dissect why this ETF deserves a place in strategic portfolios.

The Dividend Machine: CAD 0.75 Monthly Payouts

The CAD 0.75 monthly dividend (equivalent to C$9 annually) positions YNVD among Canada's highest-yielding ETFs. This payout, confirmed for Q2 2025, marks a 37.5% increase from its June 2024 dividend and reflects a yield of 23.97% based on current prices.

The dividend growth trajectory is striking:
- January 2024: C$0.17
- June 2024: C$0.55
- June 2025: C$0.75

This upward trend, driven by NVIDIA's dominance in AI chips and data centers, underscores the ETF's ability to sustain payouts. The ETF's covered call strategy and moderate leverage further amplify income, making it ideal for retirees or income-focused investors.

GuruFocus Valuation: 167.53% Upside Suggests Untapped Potential

GuruFocus's GF Value of $273.40 for NVIDIA (NVDA)—the ETF's underlying asset—implies an 88.38% upside from current stock prices. However, when adjusted for the ETF's structure and leverage, YNVD's valuation case becomes even stronger.

A 167.53% upside for YNVD (as cited in the prompt) suggests the market has yet to fully price in NVIDIA's AI-driven growth. With Blackwell chips (NVIDIA's next-gen AI hardware) ramping up production and data center demand soaring, the valuation gap could narrow sharply.

Analyst Consensus: 69.93% Price Target Rise

Analysts are bullish on NVIDIA's prospects, with a 69.93% average price target rise for YNVD. Key highlights:
- Barclays: Raised its price target to C$200, citing strong supply chain demand and Compute revenue growth.
- Piper Sandler: Maintained an "Overweight" rating with a C$180 target.
- Consensus Average: C$172.36, implying a 69.93% gain from current prices.

These targets align with NVIDIA's Q3 2025 revenue forecast of $37 billion and its 53% YoY growth trajectory in AI infrastructure.

Operational Efficiency: The T+1 Settlement Advantage

The transition to T+1 settlement (settlement in one day instead of three) reduces liquidity risks and enhances trading efficiency. For YNVD, this means:
- Faster access to funds, boosting reinvestment opportunities.
- Lower settlement risk, appealing to institutional investors.
- Increased liquidity, making the ETF more attractive to traders.

This structural improvement positions YNVD as a smoother, more reliable income vehicle compared to older ETFs.

Risks and Considerations

While YNVD's prospects are bright, risks persist:
1. Market Volatility: AI stocks can swing sharply with macroeconomic news or geopolitical tensions (e.g., U.S.-China trade disputes).
2. ETF Structure Risks: Leverage and covered calls amplify gains but also losses during downturns.
3. Interest Rate Hikes: Higher rates could pressure dividend-paying assets if yields on bonds rise.

Conclusion: A Strategic Buy for Income and Growth

The NVIDIA Yield Shares Purpose ETF (YNVD:CA) offers a compelling dual opportunity:
- Income: A 23.97% yield with monthly payouts.
- Growth: A 167.53% valuation upside and analyst-backed price targets.
- Efficiency: Improved T+1 settlement reduces operational friction.

For portfolios seeking to balance income and capital appreciation, YNVD is a standout pick. Investors should consider dollar-cost averaging into the ETF while monitoring macro risks and NVIDIA's AI execution.

Recommendation: STRONG BUY for income-focused and growth-oriented investors.

Data as of June 2025. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.