Share-split context: A reverse split was recorded on Dec 2, 2025 with coefficient 0.1. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: DIPS

DIPS is the YIELDMAX(R) SHORT NVDA OPTION INCOME STRATEGY ETF. This is an inverse, single-stock ETF that uses an option income strategy. It is designed for investors who want to generate income while betting that the price of NVDA will go down.

What this ETF is trying to do

DIPS is an "inverse" fund, meaning it is built to profit when its target asset (NVDA) declines. It also uses an "option income" strategy to create cash payments for shareholders. Because it is a single-stock ETF, its performance is closely tied to the movements of one specific company.

What the numbers show

The data shows a significant decline in the share price. The one-year price return is -49.06%, and the year-to-date (YTD) price return is -40.71%.

When we look at the total return (which includes the cash distributions), the numbers are different but still negative. The one-year total return is -18.32% and the YTD total return is -18.55%. This shows that while the cash payments helped offset some of the share-price drop, the overall value still declined.

DIPS has a history of a reverse split (most recently on December 2, 2025). In a reverse split, multiple old shares are combined into fewer new shares, which mechanically raises the per-share price. This increase does not restore lost investment value.

Income and distribution explanation

DIPS provides very frequent distributions, paying out roughly weekly (52 times in the last 12 months), mostly on Thursdays.

• Distribution Yield: 54.07%

• Trailing Distributions: $16.44 per share

It is important to remember that a high distribution yield can be misleading. A high yield does not guarantee a profit, especially if the share price is falling at the same time.

Price and NAV erosion explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the price-based evidence is significant. DIPS has a severe erosion-risk flag and an erosion score of 10, which is labeled as "Severe price erosion." This means the split-adjusted price trend has triggered a warning about the loss of share value.

Top Holdings

As of October 8, 2026, the fund holds:

• First American Government Obligs X (FGXXX): 0.79%

Pros

• Provides very frequent (weekly-like) cash distributions.

• Offers a way to gain inverse exposure to a single stock.

Cons

• Severe price erosion risk.

• Significant negative price returns over the last year and YTD.

• An "F" income rating grade.

Beginner takeaway

DIPS is a high-risk tool. While it pays out a very high distribution yield, the share price has dropped sharply. This is a reminder that receiving cash payments does not always mean the investment is growing; in this case, the price decline has been larger than the income provided.