YieldMax TSLA Option Income Strategy ETF Sees Big Inflow

ETF Channel reports that the YieldMax TSLA Option Income Strategy ETF saw a 6.7% increase in units, adding 8.925 million units. The IAUI ETF experienced a 39.3% increase in units, adding 110,000 units.

ETF Channel reports a notable increase in units for two high-yield ETFs. The YieldMax TSLA Option Income Strategy ETF (TSLY) saw a 6.7% increase in units, adding 8.925 million units [1]. Meanwhile, the IAUI ETF experienced a 39.3% increase in units, adding 110,000 units [1].

The YieldMax TSLA Option Income Strategy ETF, which focuses on generating income from Tesla (TSLA) stock through options strategies, has been attracting significant interest. The ETF has a forward yield of 62.37%, or $4.83 per share, and has been trading since November 2022 [2]. Despite its high yield, TSLY has faced significant declines, down 43% year-to-date and 54% over the past 52 weeks [2].

The IAUI ETF, which is part of the Roundhill Investments family, also saw a substantial increase in inflows. The ETF is actively managed and tracks the performance of the S&P 500 Index, with a unique twist involving deeply in-the-money FLEX Options on the SPDR S&P 500 ETF Trust (SPY) [2]. This approach allows the fund to maintain equity market participation while managing cash flows to support its ambitious monthly distribution target.

Both ETFs highlight the growing interest in high-yield investment strategies, particularly in a volatile market environment. While these funds offer attractive yields, investors should be aware of the risks associated with options-based strategies and the potential for capital erosion.

References:
[1] https://www.nasdaq.com/articles/tsly-iaui-big-etf-inflows
[2] https://www.barchart.com/story/news/33257137/2-etfs-offering-juicy-dividend-yields-of-20-or-higher