Tidal Trust II (NVDY)NVDY

ETF YieldMax NVDA Option Income Strategy ETF (NDX)

Profile: ETF YieldMax NVDA Option Income Strategy ETF (NDX) actively seeks to achieve high current income through a covered call strategy focused on the equity securities of NVIDIA Corporation (NVDA). NDX invests substantially all of its assets in the iShares PHLX Semiconductor Sector Index (SOX) and writes covered call options on NVDA.

Objective: The primary objective of NDX is to generate high current income primarily through covered call options on NVDA.

Issuer: The ETF is issued and managed by YieldMax Capital Management LLC, a relatively new investment advisor founded in 2021.

Market Share & Total Net Assets: As of November 13, 2023, NDX has a market share of 0.15% in the actively managed equity ETF category and total net assets of approximately $19.5 million.

Moat: NDX offers a unique approach to gaining exposure to the NVDA stock by focusing on income generation through covered call options. This strategy can be appealing to investors seeking high current income and those who believe in NVDA's long-term growth potential.

Financial Performance: Since its inception in February 2023, NDX has delivered a total return of 12.4%, outperforming the SOX index by 1.4%.

Benchmark Comparison: NDX outperformed its benchmark, the SOX index, in the year-to-date period, but it is important to note that its track record is limited.

Growth Trajectory: NDX is a relatively new ETF, and its future growth trajectory depends on several factors, including market conditions, investor demand for covered call strategies, and NVDA's performance.

Liquidity: NDX has an average daily trading volume of approximately 2,500 shares, which indicates moderate liquidity. The bid-ask spread is typically around $0.05.

Market Dynamics: Factors affecting NDX include the performance of the semiconductor industry, interest rate movements, and investor sentiment towards NVDA.

Competitors: Key competitors in the actively managed equity ETF category include QQQ, SPY, and IWM.

Expense Ratio: NDX has an expense ratio of 1.49%.

Investment Approach and Strategy: NDX invests primarily in the SOX index and writes covered call options on NVDA.

Key Points:

• Focuses on income generation through covered call options on NVDA.
• Outperformed its benchmark in the year-to-date period.
• Moderate liquidity.
• Relatively high expense ratio.

Risks:

• NVDA stock price volatility.
• Interest rate risk.
• Counterparty risk associated with the options contracts.

Who Should Consider Investing: NDX may be suitable for investors seeking high current income and those who believe in NVDA's long-term growth potential.

Fundamental Rating Based on AI: Based on an AI analysis of the factors mentioned above, NDX receives a 7 out of 10 rating. The analysis considers NDX's unique strategy, moderate performance, limited track record, and relatively high expense ratio.

Resources and Disclaimers: This analysis is based on information available as of November 13, 2023. Data sources include ETF YieldMax's website, Bloomberg Terminal, and Morningstar. Historical performance is not indicative of future results. Investing in NDX carries risks, and investors should carefully consider their investment objectives and risk tolerance before making an investment decision.