YieldMax Universe Fund of Option Income ETFs (YMAX) Covered Calls

The YieldMax Universe Fund of Option Income ETFs is an actively managed fund of funds designed to provide high current income through a diversified portfolio of underlying YieldMax ETFs. The fund utilizes an equal-weighted strategy that is rebalanced monthly to capture option premiums from a broad spectrum of individual stocks and sector-themed funds. By consolidating multiple synthetic covered call strategies into a single vehicle, it aims to deliver consistent weekly distributions.

You can sell covered calls on YieldMax Universe Fund of Option Income ETFs to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for YMAX (prices last updated Tue 1:10 PM ET):

Want to make money with covered calls?  Sign Up For A Free Trial

YieldMax Universe Fund of Option Income ETFs is an innovative "fund of funds" that provides investors with a diversified entry point into the YieldMax ecosystem. Rather than holding individual stocks or trading options directly on equities, YMAX invests primarily in other YieldMax exchange-traded funds. This structure allows investors to capture the high-yield potential of multiple synthetic covered call strategies—ranging from technology and consumer giants to volatile crypto-linked assets—within a single ticker.

Core Strategy and Operations

1. Equal-Weighted Fund of Funds: The fund maintains a portfolio of nearly all eligible YieldMax individual stock and sector ETFs. The holdings are rebalanced on a monthly basis to ensure an approximately equal weighting across all underlying funds. This approach mitigates the "single-stock risk" inherent in individual YieldMax products, where a significant downturn in one underlying company could otherwise severely impact an investor's capital.
2. Weekly Distribution Policy: In late 2025, the fund transitioned its payout frequency to a weekly model. Distributions are generated from the combined premiums harvested by the underlying ETFs, which sell out-of-the-money call options on their respective reference assets. These weekly payouts provide a regular income stream, though they often include a portion of return of capital (ROC).
3. Fee Structure: YMAX has a management fee of 0.29%, but investors should be aware of the "acquired fund fees and expenses" from the underlying ETFs, which bring the total expense ratio to approximately 1.28%.

Competitive Landscape

YMAX competes in the rapidly expanding derivative-income market, specifically against other multi-asset high-yield vehicles. Its most direct sibling competitor is the YieldMax Magnificent 7 Fund of Option Income ETF, which focuses exclusively on "Big Tech" rather than the full universe. It also competes with the YieldMax Ultra Option Income Strategy ETF, which uses a more aggressive, volatility-focused selection process. Outside of its own issuer, it faces competition from the Roundhill WeeklyPay Universe Fund, which offers a similar diversified approach to single-stock derivative income.

Strategic Outlook and Innovation

The fund is positioned as a cornerstone for income-focused portfolios looking to monetize equity market volatility without the complexity of managing dozens of individual positions. Innovation in the portfolio management process involves the "Dynamic Inclusion" of new YieldMax launches, ensuring the fund stays current with market trends such as AI or digital assets as new specialized ETFs are brought to market. By smoothing out the distribution volatility of single-stock funds through a broad basket approach, the fund aims to provide a more sustainable long-term yield profile. Management continues to focus on optimizing the monthly rebalancing process to minimize the impact of "volatility drag" while maintaining the high distribution rates that characterize the YieldMax brand.

Want more examples? YMAG Covered Calls | YOLO Covered Calls