Elevate Shares has launched two active ETFs offering investors current income while maintaining the opportunity for exposure to the share price of an individual security.
The YieldMax TSLA Option Income ETF (TSLY) and the YieldMax ARKK Option Income ETF (OARK) were each listed on the NYSE on November 23 with an expense ratio of 99 basis points.
TSLY and OARK are both active, transparent ETFs. The investment advisor to both funds is Toroso Investments, and the investment sub-advisor is ZEGA Financial.
TSLY seeks to deliver participation in the price returns of the common stock of Tesla (TSLA) while providing current monthly income through a portfolio substantially composed of short-term U.S. Treasury securities, cash, and cash equivalents, and with option contracts that reference the price performance of TSLA.
The fund uses a synthetic covered call strategy to provide income and exposure to the share price returns of TSLA, subject to a limit on potential investment gains as a result of the nature of the options strategy it employs.
OARK seeks current income while maintaining the opportunity for exposure to the share price of the ARK Innovation ETF (ARKK). Similar to OARK, the fund uses a synthetic covered call strategy to provide income and exposure to the share price returns of ARKK, subject to a limit on potential investment gains as a result of the nature of the options strategy it employs.
Both TSLY and OARK will seek to employ this investment strategy as it relates to TSLA and ARKK, respectively, regardless of whether there are periods of adverse market, economic, or other conditions and will not seek to take temporary defensive positions during such periods, according to regulatory filings.
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