YieldMax META Option Income Strategy ETF (FBY US) – Portfolio Construction Methodology

The investment approach governing the actively managed YieldMax META Option Income Strategy ETF seeks to maximize current income while maintaining synthetic exposure to Meta Platforms, Inc. equity returns subject to an upside cap. The manager establishes indirect exposure by buying exchange-listed call options (typically one- to six-month maturities, generally near the then-current share price) and selling put options on META so that the combined notional approximates 100% equity exposure; to generate income, the fund writes short-dated call options, typically reset monthly at strikes ≈0–15% above spot, and routinely closes or rolls positions prior to expiration to manage assignment and reset terms. Collateral is invested in U.S. Treasury securities, which also supply income. An 80% policy, measured by options notional, anchors exposure to META-linked instruments. Portfolio capacity and turnover are driven by listed-options liquidity, strike availability, and monthly re-underwriting of option ladders; risk is actively adjusted by varying cover ratios and roll decisions.

To explore FBY in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/FBY_US