ETF Education Report: GRANITESHARES YIELDBOOST HIMS ETF (HMYY)

What this ETF is trying to do

The GRANITESHARES YIELDBOOST HIMS ETF (HMYY) is an exchange-traded fund listed on the NASDAQ. Based on its data, this is an "option income" ETF. This means it uses specific financial strategies involving options to try and generate cash for investors.

What the numbers show

It is important to understand that "price return" and "total return" are two different things.

• Price Return: This measures only the change in the share price. For this ETF, the year-to-date (YTD) price return is approximately -70.92%. This means the share price has dropped significantly since the start of the year.

• Total Return: This measures the share price change *plus* any cash distributions received. The YTD total return for this ETF is approximately -42.69%.

Because the total return (-42.69%) is higher than the price return (-70.92%), it shows that the cash distributions helped offset some of the share-price decline, but not all of it.

Income and distribution explanation

This ETF has a very high distribution yield of approximately 159.83%. This number describes the cash distributions relative to the ETF's price. It is important to remember that a high yield does not mean an investor earned that percentage as their total return.

The distributions are very frequent, occurring 42 times over the last 12 months. Most of these payments happen on Fridays. While these frequent payments provide cash income, they do not guarantee that the value of your original investment will stay the same.

NAV erosion explanation

"NAV erosion" is a term used when the value of the underlying assets in an ETF decreases. While a falling share price is a "share-price decline," it does not always mean the NAV has eroded. In this specific case, there is no severe erosion-risk flag present, but the data for the erosion score was withheld due to insufficient verified price history.

Pros

• The ETF provides very frequent cash distributions (weekly-like).

• It uses an option income strategy to generate these payments.

Cons

• The ETF has experienced a significant YTD share-price decline of approximately 70.92%.

• The YTD total return is negative, meaning the overall value has decreased despite the high distributions.

• The income rating grade is an "F."

Beginner takeaway

When looking at ETFs with very high distribution yields, it is vital to look at the total return, not just the yield. A high yield can sometimes be accompanied by a large drop in the share price. Always distinguish between the cash you receive (distributions) and the change in the value of your shares (price return).