YieldMax Target 12 Big 50 Option Income ETF(AMEX:BIGY)

BIGY targets an annual income level of 12% by directly investing in 50 large-cap US companies and employing a covered call strategy. The actively managed ETF provides exposure to the price returns of select securities, subject to a cap on potential investment gains. The fund evaluates companies for price and volatility, then selects securities based on both market cap and the liquidity of their options contracts. To achieve the 12% income target, the fund also utilizes an options strategy via standardized exchange-traded and FLEX options, consisting of synthetic long exposure, covered call writing, and US Treasurys as collateral. This strategy, however, limits participation in potential gains when shares increase in value, as well as exposes investors to the stocks downside. The market cap-weighted equity portfolio is typically rebalanced quarterly. The fund aims to meet the 12% target through monthly income distributions.