NVDY: An Assessment Of How My Investment Is Actually Doing

Facing the Mirror

When I first bought into NVDY, it wasn’t because it was the sexiest ticker on the market. It wasn’t a household name like Apple or NVIDIA. Instead, it was one of those financial products that hides in plain sight, built for a specific purpose, often misunderstood, and rarely trending on social media. To me, NVDY looked like an elegant way to achieve a balance: strong yield potential, risk management features, and exposure that could offset some of the chaos elsewhere in my portfolio.

But here’s the thing about investing—it’s one thing to believe in the thesis when you click “buy,” and it’s another to look back months later and ask the brutally honest question: How is this investment actually doing?

This blog is my attempt to assess NVDY not just in terms of market performance, but in terms of what it’s done for me personally as an investor—income, stability, psychological comfort, and even the opportunity costs.

Section 1: What Exactly Is NVDY?

Before diving into my returns, let’s clarify what NVDY is for those unfamiliar.

NVDY is the ticker symbol for YieldMax NVDA Option Income Strategy ETF. It’s part of a family of funds created by YieldMax, all of which use derivatives—specifically covered call strategies—to generate outsized income tied to popular growth stocks. In this case, the fund is linked to NVIDIA (NVDA), one of the market’s fastest-growing tech companies.

Instead of directly holding NVDA stock, NVDY uses synthetic exposure and then writes call options against it. The strategy is straightforward:

Step 1: Replicate exposure to NVIDIA stock through swaps.
Step 2: Write covered calls on that exposure to generate income.
Step 3: Distribute most of that income back to shareholders, resulting in staggeringly high yield payouts.

This is why NVDY’s dividend yields have sometimes clocked in above 50% annualized. Yes, you read that right—50%.

On paper, this sounds like free money. But the devil, as always, is in the details. High yields usually come at the cost of long-term capital appreciation. The covered calls cap upside. If NVIDIA’s stock price rips higher, NVDY won’t fully capture that growth.

So, NVDY is not a vehicle for people who want to ride NVIDIA to the moon. It’s for people who want income, income, and more income—potentially at the cost of long-term growth.

Section 2: Why I Bought NVDY in the First Place

Every investment I make has a thesis, even if it’s simple. For NVDY, the thesis was this:

I believed NVIDIA had already run up significantly.
The valuation was sky-high, and I was skeptical that buying NVDA outright at nosebleed levels was the best play.
I wanted income in a volatile market.
With interest rates rising and uncertainty all around, a yield-heavy strategy appealed to me.
I saw it as a diversification tool.
My portfolio was tilted toward dividend growth names and a few growth stocks. NVDY offered a hybrid approach—growth exposure paired with income.

In essence, I didn’t trust NVIDIA’s meteoric price surge to continue unbroken, but I did trust its volatility. And volatility is the oxygen that fuels option income funds like NVDY.

Section 3: The Numbers—How My Position Has Performed

Here’s where it gets interesting. Let’s break it down into two key parts: price return and total return (including dividends).

3.1 Price Return

NVDY’s price chart has not been a smooth ride. Like most YieldMax products, it trends downward over time due to option decay and capped upside. Since launch, NVDY has lagged behind NVDA stock significantly.

If you measure pure share price, NVDY has likely been negative or flat for most holding periods longer than a few months.

3.2 Dividend Return

But dividends are the real story. Every month, like clockwork, NVDY spits out a payout that feels absurd compared to conventional dividend ETFs.

Some months, I received double-digit yields (annualized). The distributions padded my account and gave me a sense of “instant gratification” that’s rare in investing.

When I tally the total return (price + dividends), I’ve actually done reasonably well—certainly better than if I had left that cash sitting in a savings account. But the opportunity cost compared to just owning NVDA outright is striking. NVIDIA’s stock has continued to roar higher, leaving NVDY in the dust in terms of capital gains.

Section 4: The Psychology of Holding NVDY

Investing isn’t just math—it’s also psychology. Here’s how NVDY has messed with my head:

The lure of monthly income: Getting those distributions feels like a dopamine hit. It’s addictive, even if the underlying share price is leaking.
The fear of missing out: Every time NVIDIA announces new AI breakthroughs and its stock explodes, I feel the sting of not just owning NVDA directly.
The comfort of cash flow: On the flip side, when markets wobble, I take solace in the fact that NVDY pays me regardless of sentiment swings.

Owning NVDY has made me confront a key question: Do I value income now or growth later? And do I trust myself not to chase the wrong one at the wrong time?

Section 5: Opportunity Cost—What If I Had Just Bought NVIDIA?

This is the painful part.

If, instead of buying NVDY, I had simply purchased NVIDIA stock, my unrealized gains would be far higher today. NVIDIA has been on a near-uninterrupted tear, powered by AI demand, data center expansion, and investor mania.

Let’s put it bluntly:

Owning NVDA would have given me explosive capital gains.
Owning NVDY has given me consistent but capped income.

Which is “better” depends on your goals. If I needed immediate income to pay bills, NVDY wins. If I was trying to build long-term wealth, NVDA wins by a mile.

Section 6: The Role of NVDY in My Portfolio

Looking at the big picture, I see NVDY as a specialty tool in my portfolio, not a core holding.

It’s not a growth engine. That’s NVDA’s job.
It’s not a stable bond replacement. The price swings too much.
It’s an income accelerator. A niche product that juices cash flow while capping upside.

I’ve come to see it almost like an income experiment—one that has taught me valuable lessons about balancing greed, fear, and patience.

Section 7: Lessons Learned

Here’s what I’ve learned from holding NVDY:

High yield isn’t free. There’s always a trade-off.
Covered call strategies lag in bull markets. If the underlying stock soars, the ETF will underperform.
Volatility is key. Without it, option income dries up.
Know your goals. If you want long-term capital growth, NVDY is probably not your best friend.

Section 8: Would I Buy NVDY Again?

This is the million-dollar question.

Yes, if: I want monthly income and don’t mind missing out on runaway growth.
No, if: I’m chasing wealth compounding over decades.

For now, I’ll hold my current shares. I see them as part of my “income sleeve” rather than a bet on NVIDIA’s future.

Section 9: The Bigger Picture—Income ETFs in Today’s Market

NVDY is part of a larger trend: the rise of option income ETFs. Investors are hungry for yield, and issuers are eager to sell products that promise mouth-watering payouts.

But not all income ETFs are created equal. Some, like JEPI or QYLD, have longer track records and broader bases. Others, like NVDY, are highly specialized and riskier.

What makes NVDY fascinating is that it’s tethered to one of the most volatile, high-growth stocks in the market. That makes the income attractive but the capital trajectory uncertain.

Section 10: Conclusion—How Is My Investment Actually Doing?

So, let’s return to the core question: How is my NVDY investment actually doing?

In absolute terms: It’s paid me solid cash flow. My dividends have softened the sting of flat or negative price returns.
In relative terms: Compared to NVDA, I’ve underperformed significantly.
In personal terms: It has met my income goals but challenged my growth expectations.

If investing is about aligning tools with goals, then NVDY is doing fine—just not spectacular. It’s like a workhorse that shows up every month with a paycheck, but never surprises you with a promotion.

Would I brag about this investment at a cocktail party? Probably not. But do I regret it? Not entirely. Because at the end of the day, NVDY forced me to confront what I really value in investing: Am I chasing cash flow or long-term wealth?

And maybe that’s the real dividend here—the lesson learned.