The YieldMax Tesla Option Income Strategy ETF (TSLY), launched in late 2022, has garnered attention for its high dividend yield, reportedly around 127% over the past year. This ETF employs call option strategies on Tesla (NASDAQ: TSLA) to generate income, with a significant portion of its assets held in U.S. Treasuries for collateral.
Despite Tesla’s stock value increasing by 92% since the ETF’s inception, shares of TSLY have decreased by 78%. The fund has produced a total return of just 26% since its launch, underperforming compared to directly investing in Tesla stock. Monthly dividend payments have fluctuated significantly, ranging from $0.40 to $1.29, complicating income consistency for investors.
Investors considering TSLY should be aware of the associated risks, including limited upside potential from Tesla’s rising stock price and the possibility of large losses if it declines. The ETF is more suitable in a stable, narrow price range scenario for Tesla stock.
