First off, shout out to gdett2 for mentioning this item in the thread title “The 2025 Weekly Dividend experiment”. The YieldMax ETFs are transitioning almost all their ETFs to a weekly distribution model.
For me, this means a YieldMax ETF that was paying on a monthly frequency i.e. YieldMax NVDA Option Income strategy ETF (NVDY), will have the payouts stretched across the month. NVDY used to pay on the second Friday of the month, which for Oct 2025 was last week. I think the timing means I will receive four NVDY payments this month. For many of the other YieldMax ETFs, it will be three payouts for Oct 2025.
Ok, the NVDY event happened today.
I have to acknowledge it is an adjustment that an ETF owner has to get accustomed. I recall when it occurred with YMAG last year. Mind goes “wait - something happened?” Sure, the payout was variable even when YMAG was monthly. But somehow, at least initially, something triggered, and momentarily, I’m puzzled. Then, the mind connects to the data-point, “Oh yes, the ETF has shifted to a weekly payout.” It might occur again the following week. Then maybe the third week a little too. Then, the brain adjusts. AI calls its version “machine learning”. I guess, for me, this is “human learning”. The brain is an amazing thing
The second weekly NVDY payout occurred yesterday (10/24/25).
This week $0.1206 ; last week $0.1094 - At this time, the second payout is more a datapoint. Maybe a trend emerges, and allows me to better figure my dividend model expectations for 2026.
NVDY is a single issue ETF (options are on the behavior of NVDA shares). Between Jan 2025 and Apr 2025, I made 5 individual purchases of NVDA shares. I think the lowest gain among the 5 purchases shows as 37.4% Even buying NVDY at the lows, and thus, getting return from capital gains and income, would not deliver the 37.4% in the same time frame. Over time, I think the capital gains will erode. So then, one is relying on the income more. I guess, my observation is that, at least for 2025, holding the underlying name (NVDA) has provide a better return than the NVDY holding.
I’m curious, why would anyone buy a single stock ETF, like this one, instead of simply buying the stock and/or derivatives used in the ETF? In this case (NVDY), presumably, why not just buy some long-dated calls and sell short-dated calls against them? The risk profile is identical, and you can avoid the 1+% expense ratio of the ETF, today option commissions are low enough to do so (That wasn’t true in the 80s when I first started trading options!)
