Understanding the YieldMax HIMS Option Income Strategy ETF (HIYY)

What this ETF is trying to do

The YieldMax HIMS Option Income Strategy ETF (HIYY) is an "option income" ETF. This means it uses specific financial tools called options to try and create regular cash payments for investors. It is listed on the NYSE exchange.

What the numbers show

As of September 22, 2026, the current price of one share is approximately $12.15.

When looking at how the fund has performed this year, it is important to look at two different numbers:

• Year-to-Date (YTD) Price Return: This measures only the change in the share price. The price return for this year is approximately -50.63%. This means the share price has dropped significantly.

• Year-to-Date (YTD) Total Return: This measures the overall return, including the impact of distributions. The YTD total return is approximately -7.55%.

Because the total return (-7.55%) is much higher than the price return (-50.63%), it shows that the cash distributions helped offset some of the losses caused by the falling share price.

Income and distribution explanation

This ETF is known for very frequent distributions. In the last 12 months, there were 49 payouts, which is a weekly-like frequency. Most of these payments happen on Thursdays.

The distribution yield is approximately 139.28%. This number describes the cash payments relative to the ETF's price. However, a very high yield can be misleading. It does not mean an investor earned that percentage as their total return. In this case, while the yield is very high, the total return for the year remains negative.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, which is the actual value of the assets held by the fund. While a falling share price can sometimes be related to erosion, they are not the same thing. For this ETF, the erosion score is currently withheld because there is not enough verified price history available to provide a score. There is no "severe erosion-risk flag" active for this fund at this time.

Pros

• High Distribution Yield: The fund provides a very high distribution yield of approximately 139.28%.

• Frequent Cash Flow: The fund offers very frequent distributions (nearly weekly).

Cons

• Significant Price Decline: The YTD price return is approximately -50.63%, showing a large drop in share value.

• Negative Total Return: Despite the high distributions, the YTD total return is still negative at approximately -7.55%.

• Limited Holdings: The fund's reported top holdings include FIRST AMERICAN GOVERNMENT OBLIGS X at a weight of 0.21%.

Beginner takeaway

When looking at high-yield ETFs like HIYY, it is important to distinguish between the price return (the change in share price) and the total return (which includes cash payments). A very high distribution yield can provide a lot of cash, but it does not guarantee that the overall value of your investment will grow. Always look at the total return to see how the share price changes and the distributions work together.