Understanding YMAG: YIELDMAX(R) Magnificent 7 Fund of Option Income ETFs

YMAG is an ETF designed to generate income by investing in other ETFs that use option strategies based on the "Magnificent 7" tech stocks. It is characterized by a very high distribution yield and a significant decline in share price over the last year.

What this ETF is trying to do

YMAG does not buy stocks directly. Instead, it invests in a group of other YIELDMAX option income ETFs. These underlying funds use options to create cash flow from the price movements of major companies like Nvidia, Apple, and Microsoft. The goal is to provide investors with frequent cash distributions.

What the numbers show

The data shows a large difference between the share price and the total return:

• Current Price: $11.38

• Estimated Price (1 year ago): $15.78

• One-Year Price Return: -27.88% (This measures only the change in share price).

• One-Year Total Return: 10.79% (This reflects the overall return, including distributions).

• Year-to-Date (YTD) Price Return: -20.03%

• Year-to-Date (YTD) Total Return: 6.94%

If you had invested $10,000 one year ago based on the estimated price, the share value alone would have dropped to approximately $7,212, though the total return figure indicates that distributions helped offset some of that price decline.

Income and Distribution Explanation

YMAG provides very frequent payouts, often occurring weekly (mostly on Wednesdays).

• Distribution Yield: 49.76%

• Trailing Distributions: $5.66 per share

It is important to remember that a high distribution yield alone can be misleading. While it provides significant cash income, it does not guarantee that your original investment (the principal) will stay the same or grow.

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. YMAG has a severe erosion-risk flag and an erosion score of 30, which is labeled as "Significant price erosion." This means the fund's share price has trended downward substantially.

Top Holdings

As of October 10, 2026, YMAG holds 8 assets. Its largest holdings are other YIELDMAX ETFs:

• FBY (Meta): 15.08%

• NVDY (Nvidia): 14.76%

• MSFO (Microsoft): 14.08%

• APLY (Apple): 13.88%

• GOOY (Google): 13.84%

• AMZY (Amazon): 13.78%

• TSLY (Tesla): 13.66%

Pros

• Provides very high and frequent cash distributions.

• Offers exposure to the "Magnificent 7" tech giants through a single fund.

Cons

• Significant share-price decline over the last year.

• Severe erosion-risk flag.

• Income rating grade of "D."

Beginner Takeaway

YMAG is built for investors who prioritize immediate cash income over share-price growth. While the total return has been positive over the last year, the share price has fallen significantly. This highlights the risk that high payouts can coexist with a declining investment value.