So, apparently YieldMax simply won’t stop. YieldMax announced the launch today of the YieldMax SQ Option Income Strategy ETF (NYSE Arca: SQY). The actively managed ETF is available to trade on the New York Stock Exchange.
SQY seeks to generate monthly income via a synthetic covered call strategy on Block Inc. (SQ). ZEGA Financial will actively manage the ETF. SQY does not invest directly in SQ.
See more: “YieldMax Launches Option Income Strategy ETF For PayPal”
Block Inc., formerly Square Inc. (hence the ticker), is a technology conglomerate founded by Jack Dorsey and Jim McKelvey. It’s a payments platform aimed at small- and mid-sized businesses to enable them to accept credit card payments. It also lets them use smartphone or tablet computers as payment registers for point-of-sale systems (POS).
SQY will cap its potential gains if SQ shares increase in value. It should be noted that its strategy is subject to all potential losses if SQ shares decrease in value. So, the income that SQY receives may not offset these possible losses.
SQY is the newest fund in the growing suite of YieldMax ETFs. Like all YieldMax ETFs, SQY aims to deliver substantial monthly income to investors. The brand has been pumping out these synthetic covered call strategies for single stocks at a rapid clip (you’ve seen them; we don’t need to keep listing them each time).
All YieldMax ETFs have a gross expense ratio of 0.99%.
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