While Nvidia (NASDAQ: NVDA) continues to dominate headlines with its relentless rally, a lesser-known exchange-traded fund tracking the chipmaker has quietly carved out a name of its own, not for price performance, but for income.
The YieldMax Nvidia Option Income Strategy ETF (NYSEARCA: NVDY) has paid out a staggering $18.51 per share in 2024, translating to a trailing yield of nearly 97%. So far in 2025, the fund has already distributed $5.78 per share across six consecutive monthly payouts, according to data reviewed by Finbold.
The most recent declared dividend, $0.6721 per share, announced on June 18, is set to be paid on June 23 to shareholders of record as of June 20.
But this isn’t your average income ETF. NVDY employs a synthetic covered call strategy, pairing exposure to Nvidia stock with income generated from short-dated call options, while parking collateral in short-term Treasurys. That blend allows it to deliver eye-popping yields, but not without tradeoffs.
NVDY vs. NVDA: Income or growth?
To understand the appeal, consider the alternative. Despite being one of the hottest stocks of the decade, Nvidia offers a meager 0.03% dividend yield, paying just $0.04 annually per share. Long-term holders gain little in passive income, even as the stock powers through all-time highs.
In contrast, NVDY converts volatility into income, distributing monthly payouts regardless of NVDA’s price trajectory. The catch? NVDY sacrifices upside during big rallies. Year to date, Nvidia shares are up 5.18%, trading at $145.48, while the YieldMax Nvidia Option Income Strategy ETF is down 30.46% at $16.62, a gap that reflects the performance drag of writing calls in a rising market.
However, in the last 5 trading sessions, NVDY has staged a quiet rebound, gaining $0.45 (+2.78%), hinting at renewed interest as markets stabilize and income-focused investors rotate back into lower-volatility vehicles.
The Finbold verdict
NVDY isn’t a direct substitute for Nvidia stock. It’s a high-yield, cash-flow vehicle tailored for traders who value income consistency over capital gains.
With the AI megatrend still in motion and NVDA options remaining liquid and lucrative, the ETF’s structure could continue to generate attractive monthly distributions, even if its NAV lags behind.
