CHICAGO and MILWAUKEE and NEW YORK, Dec. 19, 2022 (GLOBE NEWSWIRE) -- Tidal Financial Group (“Tidal”), a leading ETF investment and technology platform, is excited to announce the launch of two ETFs: the YieldMax TSLA Option Income Strategy ETF (NYSE: TSLY) and the YieldMax Innovation Option Income Strategy ETF (NYSE: OARK), both funds are actively managed by ZEGA Financial.
TSLY and OARK pursue a synthetic covered call strategy on Tesla, Inc. (TSLA) and on the ARK Innovation ETF (ARKK), respectively. The strategy of each fund seeks to provide current monthly income and capped participation in price gains.
Yield has never been more important, hence the decision to launch YieldMax ETFs which focus on delivering meaningful monthly yields to investors through alternative income strategies. By pursuing a synthetic covered call strategy on TSLA and ARKK, these YieldMax ETFs aim to take advantage of and harvest the volatility of individual stocks or ETFs and in turn, seek to produce significant monthly income for investors. YieldMax believes that this strategy is an effective way to potentially benefit from volatility.
TSLY and OARK are the first in a series of yield-producing ETFs for the YieldMax brand – each YieldMax ETF is designed to deliver substantial monthly income resulting from a synthetic covered call strategy.
Gavin Filmore, COO of Tidal Financial Group said, “We are excited to be the platform of choice for the YieldMax and ZEGA teams to introduce these new funds at a time when volatility is high and market participants are hungry for alternative sources of income. We believe these funds offer the potential for very attractive monthly yields, and we are thrilled to provide the platform on which innovative products like these can be launched and grown.”
“TSLY and OARK ETFs provide investors with an innovative investment proposition: in exchange for limiting a portion of monthly appreciation in TSLA and ARKK, investors have the potential to receive compelling monthly income,” said Jay Pestrichelli, Co-Founder and CEO of ZEGA Financial. “It’s an adoption of the time-honored covered call tactic that aims to harvest very attractive yields from assets that are not typically associated with income.”
More information can be found at https://www.yieldmaxetfs.com/
About Tidal Financial Group
Formed by ETF industry pioneers and thought leaders, Tidal Financial Group sets out to revolutionize the way ETFs have historically been developed, launched, marketed, and sold. With a focus on growing AUM, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. Tidal is an advocate for ETF innovation. The firm is on a mission to provide issuers with the intelligence and tools needed to efficiently and to effectively launch ETFs and to optimize growth potential in a highly competitive space. For more information, visit https://www.tidalfinancialgroup.com/.
About ZEGA Financial
Founded in 2011, ZEGA Financial is an SEC-registered investment adviser and investment manager that specializes in derivatives. The firm leverages technology, data, experience, and proprietary strategies to craft products and services for advisors and individual investors. ZEGA Financial helps investors successfully navigate volatile and uncertain markets through innovative hedging strategies. The firm's founding principles grew out of the bestselling book co-authored by Jay Pestrichelli, ZEGA's CEO and Co-Founder, entitled "Buy and Hedge, the Five Iron Rules for Investing Over the Long Term." His book highlights how to bridge the complicated nature of options investing with the needs of the everyday investor. ZEGA is the sub-adviser for the YieldMax funds.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. A prospectus can be obtained by going to https://www.yieldmaxetfs.com/. Please read the prospectuses carefully before you invest.
Investments involve risk. Principal loss is possible.
The funds are distributed by Foreside Fund Services, LLC.
THE FUND, TRUST, ADVISER, AND SUB-ADVISER ARE NOT AFFILIATED WITH TESLA, INC.
Due to the Fund’s investment strategy, the Fund’s investment exposure is concentrated in the same industry as that assigned to TSLA. As of the date of the Prospectus, TSLA is assigned to the auto manufacturing industry. As with any investment, there is a risk that you could lose all or a portion of your investment in the Fund. Some or all of these risks may adversely affect the Fund’s net asset value (“NAV”) per share, trading price, yield, total return, and/or ability to meet its objective.
Indirect Investment in TSLA Risk. Tesla, Inc. is not affiliated with the Trust, the Fund, the Adviser, the Sub-Adviser, or their respective affiliates and is not involved with this offering in any way and has no obligation to consider your Shares in taking any corporate actions that might affect the value of Shares. Investors in the Fund will not have voting rights and will not be able to influence management of Tesla, Inc. but will be exposed to the performance of TSLA (the underlying stock). Investors in the Fund will not have rights to receive dividends or other distributions or any other rights with respect to the underlying stock but will be subject to declines in the performance of the underlying stock. TSLA Trading Risk. The trading price of TSLA may be highly volatile and could continue to be subject to wide fluctuations in response to various factors.
Electric Vehicles Risk. The future growth and success of Tesla, Inc. are dependent upon consumers’ demand for electric vehicles, and specifically, its vehicles in an automotive industry that is generally competitive, cyclical and volatile. If the market for electric vehicles in general and Tesla, Inc. vehicles in particular does not develop as Tesla, Inc. expects, develops more slowly than it expects, or if demand for its vehicles decreases in its markets or its vehicles compete with each other, the business, prospects, financial condition and operating results of Tesla, Inc. may be harmed. Tesla, Inc. is still at an earlier stage of development and have limited resources and production relative to established competitors that offer internal combustion engine vehicles. In addition, electric vehicles still comprise a small percentage of overall vehicle sales.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund's investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund's other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.
THE FUND, TRUST, ADVISER, AND SUB-ADVISER ARE NOT AFFILIATED WITH ARK ETF TRUST, ARKK, OR ARK INVESTMENT MANAGEMENT LLC.
Due to the Fund’s investment strategy, the Fund’s investment exposure is concentrated in the same industry as that assigned to ARKK. ARKK’s investment objective is long-term growth of capital. ARKK is an actively-managed ETF that invests under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation. ARKK’s investment adviser defines “disruptive innovation” as the introduction of a technologically enabled new product or service that potentially changes the way the world works.
As with any investment, there is a risk that you could lose all or a portion of your investment in the Fund.
Some or all of these risks may adversely affect the Fund’s net asset value (“NAV”) per share, trading price, yield, total return, and/or ability to meet its objective.
Information Technology Sector Risk. The Fund is exposed to companies in the information technology sector indirectly which subjects the Fund to the risks associated with such companies. The information technology sector includes companies engaged in internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment.
Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current monthly income. There is no assurance that the Fund will make a distribution in any given month. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.
Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Shares are not individually redeemable from the Fund and may only be acquired or redeemed from the fund in creation units. Brokerage commissions will reduce returns.
ARKK Risk. The Fund invests in options contracts that are based on the value of an ETF, specifically ARKK. This subjects the Fund to certain of the same risks as if it owned shares of ARKK, as well as the types of instruments in which ARKK invests, even though it does not. The value of ARKK will fluctuate over time based on fluctuations in the values of the securities held by ARKK, which may be affected by changes in general economic conditions, expectations for future growth and profits, interest rates and the supply and demand for those securities. Brokerage, tax and other expenses may negatively impact the performance of ARKK and, in turn, the value of the Fund’s shares. Since ARKK is an ETF, it is also subject to the same structural risks as the Fund, which is an ETF.
