ETF investment and technology platform Tidal Financial Group announced the launch of two ETFs that pursue a synthetic covered call strategy on Tesla Inc. (TSLA) and on the ARK Innovation ETF (ARKK). The YieldMax TSLA Option Income Strategy ETF (NYSE Arca: TSLY) and the YieldMax Innovation Option Income Strategy ETF (NYSE Arca: OARK) are actively managed by ZEGA Financial.
TSLY and OARK pursue a synthetic covered call strategy on Tesla and ARKK, respectively. The strategy of each fund seeks to provide current monthly income and capped participation in price gains.
Tidal launched these YieldMax ETFs to focus on delivering monthly yields to investors through alternative income strategies. By pursuing a synthetic covered call strategy on TSLA and ARKK, these ETFs aim to take advantage of and harvest the volatility of individual stocks or ETFs, and in turn seek to produce significant monthly income for investors. TSLY and OARK are the first in a series of yield-producing ETFs for the YieldMax brand.
“We are excited to be the platform of choice for the YieldMax and ZEGA teams to introduce these new funds at a time when volatility is high and market participants are hungry for alternative sources of income,” said Tidal Financial Group COO Gavin Filmore in a news release. “We believe these funds offer the potential for very attractive monthly yields, and we are thrilled to provide the platform on which innovative products like these can be launched and grown.”
Jay Pestrichelli, co-founder and CEO of ZEGA Financial, added: “TSLY and OARK ETFs provide investors with an innovative investment proposition: in exchange for limiting a portion of monthly appreciation in TSLA and ARKK, investors have the potential to receive compelling monthly income. It’s an adoption of the time-honored covered call tactic that aims to harvest very attractive yields from assets that are not typically associated with income.”
More information can be found at the YieldMax website.
Earlier this month, Tidal Financial Group listed the Senior Secured Credit Opportunities ETF (NYSE Arca: SECD), an actively managed secured credit fund managed by Gateway Credit Partners.
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