YMAX vs. YMAG: Both Offer High-Yield Weekly Income

If you’ve been hunting for eye-popping cash flow from ETFs, YieldMax’s two “fund-of-funds” option-income products—YMAX (YieldMax Universe Fund of Option Income ETFs) and YMAG (YieldMax Magnificent 7 Fund of Option Income ETFs)—have probably crossed your screen. They both pay weekly distributions and advertise trailing distribution rates that can make dividend die-hards do a double take. They also package a complex, options-driven strategy inside a simple ticker.

But let’s set expectations right up front: these are high-octane income machines with real downside risk and no guarantee your income stream will persist. The cash flow can be large, but so can the drawdowns—and part of what you’re being paid may be your own capital coming back to you.

Below, I’ll break down how YMAX and YMAG actually generate those weekly payouts, why their risk/return profiles differ, and when (if ever) one might make more sense than the other.

The quick take

What they are: Both YMAX and YMAG are fund-of-funds that primarily hold other YieldMax single-stock option-income ETFs. Those underlying funds use a synthetic covered-call approach to extract option premium for income. YieldMax ETFs+1etf.com
What they pay: Weekly distributions that change a lot and can be partly or largely return of capital (ROC). Recent trailing figures (which can swing) show very high distribution yields, but they’re not guaranteed and are not the same as total return. YieldMax ETFsStockAnalysis+1
What they cost: They’re not cheap. YMAX’s expense ratio is ~1.28% (0.29% management + acquired fund fees), while YMAG’s is ~1.12%. Those “acquired fund” fees reflect the cost of the underlying YieldMax ETFs you indirectly own. YieldMax ETFs+1SEC
How they differ: YMAG concentrates on the Magnificent 7 tech leaders via their YieldMax tickers (AAPL, AMZN, GOOGL, META, MSFT, NVDA, TSLA) and rebalances them roughly equally. YMAX spreads out across a broader menu of YieldMax ETFs—including technology, discretionary, financials, crypto-adjacent, gold miners, and more. YieldMax ETFs+1
Core risk reality: Upside is capped (because of the call-writing), while downside is not (you still take equity-like pain if underlying names drop). Income may include ROC, which reduces your cost basis and can erode NAV over time. YieldMax ETFs+2YieldMax ETFs+2

First principles: what’s inside the box?

Both funds get your income the same way: they own other YieldMax ETFs that sell call options to harvest premium. Crucially, most YieldMax single-stock funds don’t always hold shares outright; instead, they replicate a covered-call exposure synthetically—commonly by combining options positions to behave like long stock while also selling calls for income. This keeps capital tied to options rather than owning full blocks of high-priced stocks, enabling frequent (weekly) distributions. etf.com

The jargon matters because it defines the risk math:

Capped upside: When markets rip higher, option-income funds trade away a good chunk of that upside for near-term cash flow. That’s the covered-call tradeoff. YieldMax ETFs
Full downside: If underlying names fall hard, the short calls don’t save you; option income typically won’t offset a deep drawdown. YieldMax ETFs
High turnover & complexity: Options must be rolled constantly. The sponsor explicitly warns about high portfolio turnover and derivatives risk. YieldMax ETFs

Weekly income ≠ guaranteed income (and can be ROC)

Both funds pay weekly, but distribution amounts vary—a lot. The sponsor states distributions are not guaranteed, may be zero, and can include return of capital, which reduces NAV and your tax basis. Example: YMAX’s page shows a recent distribution with ~56% ROC—a clear reminder that headline “yield” isn’t the same as organic income generation. YieldMax ETFs

YieldMax’s own education materials emphasize that ROC is common in option-income funds and that 19a-1 notices are estimates that can be reclassified at tax time. Translation: don’t plan your life around a fixed yield, and don’t mistake ROC for “free money.” YieldMax ETFs+1

As of late August 2025, third-party trackers show very high trailing distribution yields—~65% for YMAX and ~48% for YMAG—with the most recent weekly ex-dividend date on Aug 21, 2025 for both. Useful context, but these trailing numbers will change with markets and with each week’s payout mix. StockAnalysis+1

Fee stack: why expenses look “double”

Because these are fund-of-funds, the total expense ratio includes the management fee plus Acquired Fund Fees & Expenses (AFFE) from the underlying YieldMax ETFs. Per official documents, YMAG’s gross ER is ~1.12% (0.29% management + ~0.83% AFFE) and YMAX’s is ~1.28% (0.29% + ~0.99%). Some investors bristle at the “double dip,” but AFFE is precisely how the industry accounts for the costs you indirectly bear when a fund owns other funds. SECYieldMax ETFs+1

Is that expensive? Compared with plain-vanilla ETFs, yes. Compared with actively managed options funds that trade weekly across dozens of underlyings? Not unusually so. The real question is whether the net income and total return you receive after fees matches your goals—and your risk tolerance.

What exactly do they hold?

YMAG: the “Magnificent 7” income wrapper

YMAG’s mandate is simple: own the seven YieldMax option-income ETFs tied to AAPL, AMZN, GOOGL, META, MSFT, NVDA, TSLA, rebalanced equally. As of Aug 26, 2025, its holdings were indeed those seven single-stock YieldMax funds, each around 14% of assets (plus a small cash sleeve). That’s concentrated exposure to U.S. mega-cap tech’s volatility, with capped upside, weekly income, and full downside. YieldMax ETFs

YMAX: the “universe” sampler

YMAX spreads its bets across a wider shelf of YieldMax ETFs—big tech, consumer platforms, financials, gold miners, crypto-linked names like Coinbase, travel/leisure, and more. Recent holdings included YieldMax tickers such as ABNY (Airbnb), AMDY (AMD), AMZY (Amazon), APLY (Apple), BABO (Alibaba), BRKC (Berkshire B), CONY (Coinbase), CVNY (Carvana), DISO (Disney), FBY (Meta), GDXY (Gold Miners), GOOY (Alphabet), HOOY (Robinhood)—and then some. That mix can dampen single-sector concentration vs. YMAG, but it also introduces idiosyncratic risks (crypto cyclicality, turnaround stories, commodity beta, etc.). YieldMax ETFs

Performance so far (short history, big caveats)

Both funds launched in 2024 and publish official performance on their websites. As of July 31, 2025:

YMAX showed ~24.9% 1-year total return (NAV), with YTD ~13.1%. YieldMax ETFs
YMAG showed ~22.1% 1-year total return (NAV), with YTD ~6.1%. YieldMax ETFs

Those are point-in-time snapshots during a tech-led market. Because upside is capped, their relative performance can lag in explosive rallies and hurt in sharp drawdowns—while paying you income all the way. Also note: Weekly payouts are not total return. Over time, NAV erosion is possible if distributions (especially ROC) outpace what the strategy earns. The sponsor explicitly warns about this. YieldMax ETFs+1

YMAX vs. YMAG: risk/return profile in practice

Think of both funds as income-harvesting overlays on volatile equity exposures. The question isn’t “which yields more this week,” it’s “which risk do you want to underwrite?”

Concentration vs. diversification

YMAG concentrates on seven mega-caps. If “Mag 7” leadership persists (with choppy, tradable volatility rather than runaway upside), YMAG can be a focused way to monetize that chop into cash flow. If Mag 7 stumbles together, YMAG takes the hit—hard. YieldMax ETFs
YMAX diversifies across many underlyings (including non-tech exposures), potentially smoothing single-sector shocks. But new risks enter the room (e.g., crypto beta via COIN, small-cap story stocks like CVNA). Broader doesn’t automatically mean safer; it means different. YieldMax ETFs

Yield dynamics

Trailing distribution rates lately have skewed higher for YMAX than YMAG, but this seesaws based on weekly option income and ROC mix. Don’t chase whichever flashes the bigger number on a given week. StockAnalysis+1

Fee drag

Both are pricey relative to index ETFs, but the AFFE math tells you exactly what you’re paying. YMAX’s 1.28% vs. YMAG’s 1.12% won’t decide outcomes on its own—the volatility and option premia will. YieldMax ETFsSEC

Liquidity/market plumbing

YMAG shows a tight median 30-day spread (~0.06%), which helps on trading costs. YMAX is also heavily traded (billions AUM), but check the bid/ask live before placing orders. Use limit orders for either. YieldMax ETFs

The big, unavoidable risks (read these twice)

Capped upside, full downside
The sponsor is crystal clear: your gains are capped, your losses are not. If mega-caps melt up, you’ll under-participate; if they retrace, you could take full equity-like pain. YieldMax ETFs
Distribution sustainability
Weekly checks feel great—until they’re smaller or absent. YieldMax repeatedly warns that distributions are not guaranteed, can be zero, and may include ROC that reduces NAV. Your total return is income plus price change, not income alone. YieldMax ETFs+1
ROC & taxes
ROC isn’t automatically “bad,” but you must understand that it lowers your cost basis and can defer taxes until sale (then you realize a larger capital gain). The fund’s 19a-1 notices are estimates and can be reclassified at tax time. When in doubt, talk to a tax pro. YieldMax ETFs+1
Derivatives & turnover risk
Options bring counterparty, liquidity, and valuation risks. Turnover is high, which can increase costs and taxable events in a taxable account. YieldMax ETFs+1
Behavioral risk
These funds can train you to chase a flashing yield week to week. Resist that. Focus on the strategy’s fit with your portfolio and your capacity for drawdowns.

When might YMAG make more sense?

You have a high-conviction view that Mag 7 will remain volatile and broadly range-bound (or grind) rather than moonshot. The option income loves persistent, tradeable volatility. YieldMax ETFs
You’re comfortable being concentrated in mega-cap tech narratives and are explicitly okay with the capped-upside/full-downside tradeoff. YieldMax ETFs
You want cleaner exposure (seven names) and don’t want the idiosyncratic add-ons like crypto-exposed equities or miners.

Who should avoid YMAG? If you need broad sector balance—or you’re worried about synchronized tech weakness—look elsewhere.

When might YMAX make more sense?

You prefer a wider spread across sectors and themes—big tech, consumer platforms, financials, commodities/miners, and crypto-linked equities—inside one income wrapper. YieldMax ETFs
You want potential diversification versus pure Mag 7 concentration (acknowledging this introduces other betas and headline risks). YieldMax ETFs
You’re indifferent to a slightly higher fee in exchange for that broader mix. YieldMax ETFs

Who should avoid YMAX? If you want a pure tech-mega-cap call-writing play and dislike exposure to miners/crypto cyclicality or small, story-driven names, YMAX’s “universe” may feel too eclectic. YieldMax ETFs

A note on “yield vs. total return”

It’s tempting to rank these funds by whichever posts the bigger distribution rate this month. Don’t. The sponsor stresses that the Distribution Rate is just a snapshot annualizing the most recent payout, not a promise or a good predictor of your total return. Weekly cash flow can feel like a win even while NAV slips. Over a full cycle, what matters is income + price change (and taxes). YieldMax ETFs

And keep in mind the broader lesson many learned in 2022–2023: covered-call funds don’t protect you in fast sell-offs; they still fell hard when markets cracked. The Financial Times highlighted that even well-known buy-write strategies disappointed investors seeking “bond-like stability” in rough tapes. Options income doesn’t erase bear markets. Financial Times

Practical tips for using YMAX or YMAG (if you insist)

Size small and be intentional. These aren’t core holdings for most investors. Think satellite sleeve, not the center of your portfolio.
Reinvest (or don’t) on purpose. If you reinvest weekly distributions, you compound exposure; if you withdraw, you’re effectively monetizing option premium. Either way, track your cost basis (ROC complicates tax lots). YieldMax ETFs
Use limit orders. YMAG’s reported median spread is tight, but you still want price control—especially around rebalance or macro-news days. YieldMax ETFs
Watch concentration. YMAG is a bet on seven names. YMAX is a bet on the YieldMax roster (which currently includes miners and crypto-sensitive equities). That concentration shows up fast in drawdowns. YieldMax ETFs+1
Evaluate by cycle, not by week. Have a discipline for when to add/trim based on volatility regimes and your income needs—not last Friday’s payout.

A simple comparison snapshot

Feature	YMAX	YMAG
Focus	Broad “universe” of YieldMax single-stock & thematic option-income ETFs	Only the seven YieldMax ETFs tied to “Mag 7”
Weekly distributions	Yes (variable; may include ROC)	Yes (variable; may include ROC)
Expense Ratio (gross)	~1.28%	~1.12%
Concentration	Lower (more tickers, more themes)	Higher (seven mega-caps)
Recent 1-yr total return (as of 7/31/25, NAV)	~24.9%	~22.1%
Recent trailing distribution yield (TTM, can swing)	~65%	~48%
Who it fits	Income hunters wanting broader exposures (okay with crypto/miners/story stocks risk)	Income hunters wanting pure Mag 7 option-income exposure

Sources: Official fund pages and third-party trackers; yields and returns change frequently. YieldMax ETFs+2YieldMax ETFs+2SECStockAnalysis+1

What could make one outperform the other?

Volatility & leadership: If Mag 7 volatility persists without blow-off rallies, YMAG may translate that volatility into efficient option income. If leadership broadens to crypto-adjacent and commodity names, or volatility clusters elsewhere, YMAX could benefit from its wider net. YieldMax ETFs
Big uptrends: In strong, sustained uptrends (especially tech mega-caps), both can lag outright equity exposure due to sold calls—but YMAG may be more capped, given its concentration. YieldMax ETFs
Sharp corrections: Both get hit; diversification gives no guarantee. Option income rarely fully offsets a fast drawdown. Financial Times

Bottom line

Both YMAX and YMAG are engineered to turn volatility into weekly cash flow through an options overlay. That cash flow is variable, unpredictable, and can include return of capital, which can chip away at NAV and lower your cost basis. Neither fund guarantees distributions. YieldMax ETFs+1
YMAG is a tighter, Mag-7-only bet—cleaner, but more concentrated.
YMAX is a broader, multi-theme bet—less concentrated, but exposed to idiosyncratic risks like miners and crypto-sensitive equities. YieldMax ETFs
Fees are high by ETF standards but transparent; the meaningful questions are fit, sizing, and behavior—can you stomach equity-like drawdowns in exchange for lumpy, sometimes eye-watering income? YieldMax ETFsSEC

If you’re considering either fund, do it with eyes wide open: size small, respect the capped-upside/full-downside tradeoff, and judge success by total return over your full holding period, not by the biggest weekly payout. That’s the only way these tickers make sense for most investors.

Sources & further reading

Official fund pages with holdings, expense ratios, distributions, and risk language for YMAX and YMAG. YieldMax ETFs+1
SEC summary prospectus for YMAG (AFFE/expenses; turnover/tax notes). SEC
YieldMax education on covered calls and Return of Capital (ROC). YieldMax ETFs+1
Distribution cautions and definitions directly from YieldMax & press releases. YieldMax ETFsGlobeNewswire+1
Third-party snapshots for trailing yields, ex-dates, and quick comparisons (useful, but always cross-check): StockAnalysis & ETFdb. StockAnalysis+1ETF Database