MSTY vs NVDY — Dividend & DRIP Comparison

MSTY and NVDY are sibling YieldMax funds that apply the same single-name option-income structure to two of the most volatile large-cap stocks in the US market. Both funds use synthetic exposure plus a covered-call overlay implemented through equity-linked instruments to generate weekly cash distributions, both carry a 0.99% expense ratio, and both are issued by YieldMax through the Tidal trust platform. The difference between them is entirely a matter of which underlying name they track and what that name's implied volatility looks like at any given moment. MSTY writes options on MicroStrategy and currently delivers a forward yield near 91.3%. NVDY writes options on Nvidia and delivers a forward yield closer to 50.2%. The roughly 1.8× gap in headline yield is a direct reflection of MicroStrategy's much higher option-implied volatility relative to Nvidia's — investors are not being paid more by MSTY for taking on a different strategy, they are being paid more for absorbing a more volatile underlying.

NAV erosion is the central risk in both funds and the gap between them is meaningful. MSTY, launched in February 2024, has experienced approximately -48.7% inception-to-date share-price decline. NVDY, launched in May 2023, has experienced approximately -10.4% over a longer history. Neither fund has a measurable five-year dividend growth rate or five-year share-price growth, given how recent both inceptions are. Both NAVs decline structurally over time because the covered-call overlay caps upside while leaving the position exposed to downside, and because the high distribution rate is partially funded by return-of-capital classification rather than organic option premium.

AUM tells a similar story. MSTY has grown to roughly $4.9B as the MicroStrategy thesis attracted retail income-seekers during MSTR's 2024–2025 run, while NVDY sits around $1.4B with a steadier accumulation pattern that tracks Nvidia's longer maturation as a market-leader. Both funds distribute weekly, which makes DRIP cash-flow modeling straightforward — but the variability of each weekly payment is substantial in both cases, scaling with the underlying's spot volatility.

NVDY suits investors who want option-income exposure to Nvidia's volatility profile with somewhat less extreme NAV decay. MSTY fits investors with a specific conviction on MicroStrategy's option chain and a tolerance for high single-name concentration plus material principal erosion. In either case, model total return — distributions plus NAV change — not yield alone.