Investors Cautioned on ETF Distribution Rates and Yields

Investors in YieldMax™ ETFs are advised that the Distribution Rate and 30-Day SEC Yield are not reliable indicators of future distributions. These metrics can fluctuate significantly over time, and future distributions may differ markedly from current rates. As of July 31, 2024, the subsidized and unsubsidized 30-Day SEC Yields for the ULTY ETF were both reported at 0.00%, highlighting the uncertainty surrounding potential returns. The investment strategy of any fund may not be executed as intended, posing a risk of loss for investors. Each YieldMax™ ETF invests in options contracts linked to the value of its underlying securities, which introduces additional risks. These include market volatility, imperfect correlations with underlying investments, and counterparty risks, which can exceed those associated with traditional securities investments. Moreover, distribution risks are significant, as monthly payouts may consist of capital returns that can diminish the net asset value (NAV) and trading price of the ETFs over time. This reduction could lead to substantial losses, particularly since distributions do not account for dividends from the underlying securities, potentially resulting in lower income compared to direct investments. The performance of YieldMax™ ETFs may diverge from broader market trends, making them more vulnerable to the performance of specific securities. A decline in value from a single issuer could disproportionately affect the overall value of the fund, emphasizing the importance of diversification in investment strategies.