With the artificial intelligence revolution in full swing, semiconductor companies have seen outsized returns throughout the course of 2024. However, the gains were not evenly distributed — with Nvidia (NASDAQ: NVDA) taking the lion’s share of the market thanks to its cutting-edge chips.
Since the beginning of the year, Nvidia stock has seen prices increase by 191.11%. In the last 30 days, the price of an NVDA share has only increased by 3.09% — driven primarily by an instance of rather aggressive profit-taking following the company’s Q3 FY 2025 earnings report.
While analysts generally remain bullish on the stock, its main value lies in capital appreciation — dividends are not Nvidia’s strong suit, and the stock remains unappealing for income investors.
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However, there is one exchange-traded fund (ETF) — the YiledMax NVDA Options Income Strategy ETF (NYSEARCA: NVDY), which offers investors the chance to gain exposure to the high-flying semiconductor stock while still locking in profits regularly.
NVDY provided investors with a reliable stream of income
NVDY generates income by utilizing a mix of options and fixed-income assets — to be more precise, options are deployed via covered calls — while simultaneously holding short-term Treasury investments.
By doing so, the fund collects premiums through options, benefits from options spreads, and derives a steady cash flow from Treasury bills. On top of that, investors also get the benefit of capital appreciation — although in NVDY’s case, it pales in comparison to simply holding Nvidia stock.
Since the beginning of the year, the ETF has paid out investors 12 times — put together, those payments amount to $18.51 per NVDY share.
To purchase a single NVDY share at the beginning of the year, an investor would have had to part with $22.13. At press time, prices had risen to $24.08 — bringing year-to-date (YTD) returns to 8.81%.
The fund’s approach to capturing some of Nvidia’s impressive growth seems to be paying off — that initial $22.13 investment would have netted investors a total of $44.54, split between dividend payouts and capital appreciation — equating to a 92.45% profit.
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