Key stats
About Tidal Trust II YieldMax SQ Option Income Strategy ETF
Expense ratio
1.01%
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Inception date
Oct 10, 2023
SQY aims to generate monthly income while providing exposure to the price returns of the stock, Block, Inc. (SQ), subject to a cap on potential investment gains. The fund utilizes a synthetic covered call strategy via standardized exchange-traded and FLEX options, which consists of three elements: i) synthetic long exposure, ii) covered call writing, and iii) US Treasurys. The synthetic long exposure seeks to replicate the price movements of SQ by purchasing and selling at-the-money call and put options that generally have six-month to one-year terms. To generate income, the fund writes call options with an expiration of one month or less and a strike price 5%-15% above SQs current share price. This limits the funds participation in potential gains if SQ shares increase in value. Lastly, the fund holds cash and short-term Treasury securities as collateral. Note: the fund does not invest directly in shares of Block. Thus, investors are not entitled to any SQ dividends.
Classification
What's in the fund
Exposure type
Government
Stock breakdown by region