YieldMax Rolls Out New ETF For Investors To Tap Into Carvana's Rally And Generate Income

YieldMax has introduced the YieldMax CVNA Option Income Strategy ETF CVNY, which will allow investors to generate income while enjoying exposure to the stock price movements of Carvana CVNA.

The actively managed fund follows a synthetic covered call strategy, and operates with a net expense ratio of 0.99%.

The fund achieves synthetic long exposure to Carvana by buying call options and selling put options simultaneously. It primarily trades standardized exchange-traded or FLEX options, with durations ranging from one to six months. At times, the fund managers may use credit call spreads instead of standard call options based on market conditions.

Also Read: New YieldMax ETF Targets Crypto, Tech Sectors With Income Strategy

The ETF also holds short-term U.S. Treasury securities as collateral and for additional income generation.

Carvana's stock has rebounded significantly, up around a whopping 465% in the past year, and the new ETF offers investors a way to take advantage of this momentum while benefiting from its income-focused strategy. So, investors can capitalize on the online used car retailer's price fluctuations without directly owning the stock.

With the CVNA Option Income Strategy ETF launch, YieldMax now has over 70 investment vehicles, with 40 ETFs in the U.S. that specialize in single-stock option strategies. The firm collectively manages more than $7.35 billion in assets, which speaks of strong investor interest. YieldMax’s asset growth rate on a trailing twelve month basis is at 489.65%.

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Photo: Courtesy of Carvana