Understanding the YieldMax Nasdaq 100 0DTE Covered Call Strategy ETF (QDTY)

What this ETF is trying to do

The YieldMax Nasdaq 100 0DTE Covered Call Strategy ETF (ticker: QDTY) is an "option income" ETF. This means it uses a strategy involving covered calls to try and generate cash for investors. It is designed for people looking for regular income rather than just watching a stock price go up and down.

What the numbers show

When looking at this ETF, it is important to separate "price return" from "total return."

• Price Return: This measures only the change in the share price. For QDTY, the one-year price return was approximately -13.70%, and the year-to-date (YTD) price return was approximately -9.44%. This means the share price has gone down over these periods.

• Total Return: This measures the overall performance, including the money paid out to investors. Even though the share price fell, the one-year total return was approximately 21.39%, and the YTD total return was approximately 15.62%.

To visualize the price change, an investor's share price was estimated to be approximately $45.38 one year ago, compared to the current price of $39.16.

Income and distribution explanation

This ETF is known for frequent distributions. In the last 12 months, it made 53 payments, mostly on Wednesdays. The distribution yield is approximately 36.26%. This number tells you how much cash was distributed relative to the ETF's price, but it is not the same as the total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the fund's underlying assets. While a falling share price does not always mean the NAV is eroding, we use an "erosion-risk score" to measure this risk. QDTY has an erosion score of 75, which is labeled as "mild price erosion." This indicates a mild level of risk regarding the stability of the fund's value.

Pros

• High Total Returns: Despite a falling share price, the total return (which includes distributions) has been positive for both the year-to-date and one-year periods.

• Frequent Income: The ETF provides very frequent cash distributions.

Cons

• Share-Price Decline: The actual price of a single share has decreased over the last year.

• Mild Erosion Risk: The fund shows a mild risk of price erosion.

Beginner takeaway

For new investors, the most important lesson here is that a high distribution yield can be misleading. An ETF might pay out a lot of cash (high yield), but if the share price is falling at the same time, the total experience of the investor is different. Always look at the total return to see how the share price changes and the distributions work together.

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*Top Holdings (as of 2026-10-10):*

• *FIRST AMERICAN GOVERNMENT OBLIGS X (FGXXX): 3.75%*