YieldMax AI ETF Pays $0.1470 Weekly Distribution on June 10
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
yieldmax-ai-etfoption-income-strategy
Fazen Markets Editorial Desk
Collective editorial team · methodology
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The YieldMax AI Option Income Strategy ETF announced a weekly cash distribution of $0.1470 per share on June 10, 2026. The declaration maintains the actively managed fund's high-yield profile for shareholders of record on June 13, with payment scheduled for June 17. The fund targets income generation by selling options on a basket of leading artificial intelligence and technology stocks, employing a covered call strategy.
The distribution arrives during a period of heightened volatility in artificial intelligence and mega-cap technology names. The Nasdaq 100 has traded in a 15% range over the past quarter as investors debate the sustainability of earnings growth for leading AI chipmakers and software firms. This volatility directly benefits the fund's strategy, which aims to harvest premium from elevated options prices.
A historical comparable is found in the fund's own distribution record. On May 27, 2026, it paid a $0.1512 distribution, the highest of the preceding four weeks. The consistency of payouts near the $0.15 level, even as underlying equity prices fluctuated, demonstrates the income-focused engine of the covered call approach. The fund is designed to perform differently than a simple buy-and-hold strategy on its target stocks.
The catalyst for sustained investor interest is the search for yield in a lower-rate environment. While the Federal Funds Target Rate sits at 3.75%, down from its mid-2025 peak, traditional fixed-income yields remain compressed. This has pushed capital toward alternative income strategies, including those offered by ETF issuers like YieldMax, which explicitly target double-digit annualized yields through options.
The $0.1470 distribution annualizes to approximately $7.64 per share, based on 52 weekly payments. Based on the fund's closing price of $21.38 on June 9, 2026, this equates to a forward annualized distribution yield of 35.7%. The fund's net asset value (NAV) was $21.42 on the same date, indicating the shares traded at a slight discount.
Distribution History (Last 4 Weeks):
| Date | Distribution Amount |
|---|---|
| June 10, 2026 | $0.1470 |
| June 3, 2026 | $0.1485 |
| May 27, 2026 | $0.1512 |
| May 20, 2026 | $0.1498 |
Year-to-date, the fund has declared total distributions of $3.831 per share. Its primary benchmark, the S&P 500, has a current dividend yield of 1.4%. The fund's assets under management total $1.85 billion, reflecting significant institutional and retail adoption since its launch. The portfolio holds positions in approximately 25 large-cap AI and tech stocks, including Nvidia, Microsoft, and Alphabet.
The fund's strategy generates a direct second-order benefit for options market makers and volatility desks at prime brokerages. Consistent, high-volume selling of covered calls by the ETF's managers provides a steady supply of options contracts, which can suppress implied volatility for the underlying stocks. This dynamic can modestly reduce hedging costs for institutional investors in names like AMD (AMD) and Meta Platforms (META).
A key risk is the strategy's performance during sharp, sustained rallies. The fund caps its upside participation because it sells call options. If its underlying stock portfolio surges 40% in a quarter, the fund's NAV appreciation will be significantly less, potentially trailing a simple index fund by 20 percentage points or more. Distributions are also not guaranteed and are derived from option premiums, which can decline if market volatility collapses.
Positioning data from the Options Clearing Corporation shows elevated net short interest in near-dated calls for several mega-cap tech names, a flow pattern consistent with funds like YieldMax AI being active. This institutional selling of calls represents a meaningful source of gamma for the market, potentially acting as a temporary speed brake on rallies in the affected stocks.
The primary catalyst for the fund's future distribution levels is the Q2 2026 earnings season, commencing in mid-July. Earnings announcements from major AI components like Nvidia (NVDA) on July 23 and Microsoft (MSFT) on July 24 will drive single-stock and sector volatility. Higher post-earnings implied volatility would increase the premium the fund can collect from selling options, potentially supporting distributions.
Investors should monitor the Cboe Volatility Index (VIX). A sustained move below 12 would signal a collapse in broad market fear, compressing options premiums across all strikes and maturities. Such an environment would pressure the fund's ability to generate high income. Conversely, a VIX holding above 18 would be a tailwind for the strategy.
The distribution rate itself is the key level to watch. A decline below $0.140 for two consecutive weeks would signal a material reduction in collected premiums, potentially due to lower volatility or a shift in the fund's positioning. The fund's NAV support level is $20.50, a price last tested in April 2026.
The fund employs an active covered call strategy, selling out-of-the-money call options against a portfolio of AI and technology stocks. The yield is primarily derived from the premiums collected from these option sales, which are then distributed to shareholders weekly. This differs from traditional equity ETFs, which rely on company dividends. The high yield reflects the income from options, not dividends, and carries different risks, including capped upside.
No, the weekly payments are classified as fund distributions, which may comprise ordinary income, capital gains, or return of capital. The exact tax characterization for shareholders is determined annually and reported on Form 1099-DIV. A significant portion of distributions from option income strategies is typically treated as ordinary income, taxed at an investor's marginal income tax rate, unlike qualified dividends.
The fund's performance in a downturn is a mix of opposing forces. The sold call options would expire worthless, allowing the fund to keep the full premium, which provides income that offsets some NAV decline. However, the value of the underlying stock portfolio would fall. The net effect is that the fund's NAV would likely decline, but potentially less than a pure long portfolio, depending on the magnitude of the crash and the level of volatility it sparks.
The YieldMax AI ETF's latest distribution highlights the persistent institutional demand for high-yield strategies funded by selling volatility on mega-cap technology stocks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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