{"id":42926,"date":"2025-08-27T11:35:12","date_gmt":"2025-08-27T11:35:12","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/27\/is-the-82-yielding-nvdy-etf-a-good-buy-before-nvdia-earnings\/"},"modified":"2025-08-27T11:35:12","modified_gmt":"2025-08-27T11:35:12","slug":"is-the-82-yielding-nvdy-etf-a-good-buy-before-nvdia-earnings","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/27\/is-the-82-yielding-nvdy-etf-a-good-buy-before-nvdia-earnings\/","title":{"rendered":"Is the 82% yielding NVDY ETF a good buy before NVDIA earnings?"},"content":{"rendered":"
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The YieldMax NVDA Option Income Strategy (NVDY) ETF stock will be in the spotlight this week as Nvidia publishes its financial results. NVDY stock was trading at $16.90, a few points below the year-to-date high of $17.2. <\/p>\n

NVIDIA to publish earnings on Wednesday<\/h2>\n

The main catalyst for the Nvidia and NVDY ETF is that the company will publish its second-quarter results on Wednesday. <\/p>\n

Wall Street analysts have high expectations<\/a> from Nvidia this week as most of it customers published strong results and boosted their capital expenditure plans. UBS recently hiked its stock outlook from $175 to $205.<\/p>\n

Microsoft, its biggest customer, has hinted that it will spend over $30 billion in capital expenditure in the current quarter. Other hyperscalers like Google, Amazon, and Meta Platforms have also done the same.<\/p>\n

At the same time, Taiwan Semiconductor, its largest supplier, also published strong results, citing demand for AI.<\/p>\n

NVIDIA\u2019s results will provide more information on its Chinese business, which Trump blocked a few months ago. <\/p>\n

While he has lifted the ban, NVIDIA has not received a warm welcome from China and has even paused the sale. Trump is also considering allowing the sale of more advanced NVIDIA chips to the country, which may boost its stock. <\/p>\n

NVDY ETF inflows are rising <\/h2>\n

Meanwhile, income-focused investors are flocking into NVDY. Data shows that the fund now has over $1.8 billion in assets under management. Its net inflow this year stood at over $906 million. <\/p>\n

It added $26 million in net assets last week after adding another $53 million a week earlier. This growth is happening as investors seek an exposure to NVIDIA while still generating regular monthly income. <\/p>\n

Data on its website shows that NVDY has an 81% dividend yield, much higher than NVIDIA\u2019s yield of 0.022%.<\/p>\n

NVDY generates its high dividend payment by using the covered call strategy. This is an approach where the fund manager buys a stock and then writes call options on the same. <\/p>\n

A call option is a trade that gives the buyer the right, but not the obligation, to buy an asset at a certain price. The trade gives the fund a premium, which it distributes to its investors as a monthly dividend.  <\/p>\n

The main risk with NVDY and other covered call ETFs is that they must have a strike price. A trade is normally closed when this strike price is hit, meaning that it does not participate in the rest of the rally. <\/p>\n

Is NVDY ETF a good buy?<\/h2>\n

In theory, NVDY ETF gives a user a chance to take part in the NVIDIA stock rally while giving them access to monthly dividends.<\/p>\n

However, history shows that the total returns of most covered call ETFs are smaller than the main asset. For example, the NVDY stock has dropped by 27% this year as the NVIDIA stock jumped by 33%. <\/p>\n

NVDA has also done better in terms of the total return. Its total return this year stood at 33%, higher than NVDY\u2019s 20%. The same trend happened in the last 12 months as the chart below shows.<\/p>\n

NVDY vs NVIDIA stocks<\/figcaption><\/figure>\n

Therefore, most investors will likely do well by just foregoing NVDY\u2019s monthly dividend and focusing on NVDA\u2019s stock performance. <\/p>\n

Read more: Nvidia\u2019s Jensen Huang calls TSMC stock buyers \u2018very smart\u2019 as US mulls chip equity stakes<\/a><\/p>\n

The post Is the 82% yielding NVDY ETF a good buy before NVDIA earnings?<\/a> appeared first on Invezz<\/a><\/p>\n

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The YieldMax NVDA Option Income Strategy (NVDY) ETF stock will be in the spotlight this week as Nvidia publishes its financial results. NVDY stock was trading at $16.90, a few points below the year-to-date high of $17.2.  NVIDIA to publish earnings on Wednesday The main catalyst for the Nvidia and NVDY ETF is that the <\/p>\n","protected":false},"author":1,"featured_media":42927,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-42926","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=42926"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42926\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/42927"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=42926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=42926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=42926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}