Exploring Nvidia's NVDY ETF and Its Over 50% Annual Yield

Monday, 21 October 2024, 11:43

ETF enthusiasts are drawn to Nvidia's NVDY, which offers a staggering 50% annual yield. By leveraging covered calls on NVDA shares, NVDY turns volatility into rewards for investors seeking income.
Finbold
Exploring Nvidia's NVDY ETF and Its Over 50% Annual Yield

Why Choose Nvidia's NVDY ETF for Income?

Nvidia's NVDY ETF provides a unique opportunity for income-focused investors. This ETF employs a covered-call strategy utilizing Nvidia shares, combined with short-term Treasury investments.

How NVDY Works

By selling call options on NVDA stocks, NVDY captures premiums, generating impressive returns. As of October 21, the ETF was priced at $25.59 and delivered $13.20 annually, reflecting a distribution rate of 55.66%.

Comparing NVDY and NVDA

  • NVDY is up 15.63% in 2024.
  • NVDA stock soared by 186.17% in 2024.

While NVDY offers substantial dividends, NVDA has outshined in growth, emphasizing the different investment strategies available.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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