The YieldMax MSTR Option Income Strategy ETF (MSTY) continues to attract investor interest due to its high dividend yield and links to the Strategy company, a major Bitcoin holder.
MSTY Capital Inflows
Since the beginning of the year, MSTY has shown a strong inflow of capital, averaging $3.9 billion. Investments are expected to continue growing as traders anticipate Bitcoin prices reaching new all-time highs.
Covered Call Strategy
The fund employs a covered call strategy, selling options on Strategy stocks. This allows for regular payments to investors even when the stocks remain within a certain range. This approach generates additional income through option premiums.
Comparing MSTY and MSTR Returns
Despite a high dividend yield of 136%, MSTY has shown lower total returns compared to MSTR stocks. So far this year, MSTR shares have increased by 34%, while MSTY has declined by 18%. Thus, MSTY's total return over the past 12 months was 107%, while MSTR's reached 160%.
In conclusion, the YieldMax MSTR Option Income Strategy ETF shows remarkable success due to its covered call strategy and high dividend yield; however, its overall returns remain below those of MSTR stocks.
