YieldMax RDDT Option Income Strategy ETF announced a weekly dividend distribution on May 21, with a payout of $0.3481 per share, trading under the ticker symbol RDYY. This dividend represents a 14.60% decrease from the previous week's distribution of $0.4076. Both the ex-dividend date and the record date are May 21, with the payment date set for May 22.
The fund, which listed on the NYSE Arca exchange on September 8, 2025, is an actively managed ETF with current assets under management of approximately $11.76 million and a total expense ratio of 1.01%. Its core strategy is a synthetic covered call approach, primarily generating option premium income by selling call option spreads on Reddit Inc. stock. It concurrently holds U.S. short-term Treasury securities as collateral for these option positions, which also provides additional interest income. The fund does not invest directly in Reddit shares. Its primary investment objective is to provide investors with consistent weekly income, with a secondary goal of maintaining a degree of participation in the price movements of Reddit stock.
According to data disclosed on the YieldMax website, RDYY has an annualized distribution rate of 88.04% and a 30-day SEC yield of 2.72%. It is noteworthy that approximately 39.41% of this current distribution is classified as a return of capital. A significant portion of past distributions may have also come from returns of capital, which can reduce the fund's net asset value and share price over time, a risk investors should be aware of.
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