YieldMax Launches Synthetic Covered Call ETFs for Meta, Google

YieldMax continues to expand its lineup of exchange-traded funds with the launch of two new actively managed ETFs. The funds listed on the New York Stock Exchange seek to generate monthly income via a synthetic covered call strategy.

The YieldMax META Option Income Strategy ETF (NYSE Arca: FBY) sells/writes call options on Meta Platforms Inc. (META). Meanwhile, the YieldMax GOOGL Option Income Strategy ETF (NYSE Arca: GOOY) sells/writes call options on Alphabet Inc. (GOOGL).

The ETFs do not invest directly in META or GOOGL.

See more: “New YieldMax ETF Seeks Synthetic Covered Call Strategy on Amazon

Tidal Financial Group is the adviser for all YieldMax ETFs. ZEGA Financial is their subadvisor. Both ETFs are actively managed by ZEGA Financial.

FBY and GOOY are the latest YieldMax ETFs that aim to deliver monthly income through a synthetic covered call strategy. Earlier this week, YieldMax launched the YieldMax AMZN Option Income Strategy ETF (AMZY) on the New York Stock Exchange. The actively managed AMZY sells/writes call options on Amazon.com Inc. (AMZN).

“Advisors are increasingly turning to ETFs that use options to generate enhanced income,” said VettaFi’s head of research Todd Rosenbluth. “We have seen strong flows to covered call strategies and other alternatives in the past year.”

Like all YieldMax ETFs, FBY and GOOY have an expense ratio of 0.99%.

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