YieldMax, established in 2011 by ZEGA Financial, specializes in ETFs using derivatives to profit from volatile tech stocks. By 2025, it managed $9.38 billion in assets and expanded its ETF catalog beyond covered calls into cryptocurrencies and sector-specific offerings. The strategy combines liquidity with high-yield dividends, despite limiting upside potential, making it appealing to risk-seeking investors. YieldMax's cutting-edge technology enables it to efficiently manage its diverse portfolio of over 30 ETFs catering to various investor preferences and trends.
Statistically, about 80% of all call options expire worthless. Nevertheless, there is an unquenchable thirst in the market from buyers to consistently maintain open interest liquidity for anyone looking to write calls.
YieldMax was founded in 2011 by ZEGA Financial, an SEC-registered financial advisory specializing in derivatives. Recognizing the market interest in high-flying tech stocks with commensurately high volatility, YieldMax began offering Exchange Traded Funds (ETFs) pegged to specific stocks with an added dividend component.
Fast forward to 2025. According to Morningstar, YieldMax now holds $9.38 billion Assets Under Management. The company's ETF catalog has expanded to over 30 covered call ETFs, as well as cryptocurrency ETFs, select portfolio ETFs, industrial sector ETFs, index ETDFs, and even short interest ETFs.
The covered call writing strategy can consistently generate dividends, but limits longer term upside potential on the underlying security.
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