YieldMax MSTR Option Income ETF lost 33.9% of value in a year, with high fees and risky payouts.

YieldMax MSTR Option Income Strategy ETF (MSTY) lost about 33.9% of its value from early 2026 to mid-2026, despite paying weekly distributions. The fund charges a 1.03% annual fee and uses a covered-call strategy on MicroStrategy stock that limits upside gains but exposes investors to full downside risk. Many distributions are actually return of capital, taxed as ordinary income, which reduces net returns. Investors might prefer owning MicroStrategy shares directly or choosing more diversified covered-call ETFs like JPMorgan Equity Premium Income ETF for better cost and risk profiles.