YieldMax TSLA ETF Is Interesting, But Here's What I'd Buy Instead

• The YieldMax Tesla ETF features a monolithic output tied to banal that’s not a dividend payer.

• That large output comes with tradeoffs.

• Investors tin inactive make sizable income connected low-yielding maturation stocks with little risks.

• 10 stocks we similar amended than Neos ETF Trust - Neos Nasdaq-100 High Income ETF ›

There's nary denying that the YieldMax TSLA Option Income Strategy ETF (NYSEMKT: TSLY) is an income powerhouse. The exchange-traded money (ETF) concluded 2025 with a organisation complaint of 50.21%.

Under immoderate circumstances, that's eye-catching, fto unsocial erstwhile you relationship for the information that Tesla (NASDAQ: TSLA) doesn't wage a dividend. It's not conscionable the output that draws investors to YieldMax, which is 1 of the astir important single-stock funds. It's the information that the "paychecks" get weekly. That looks bully compared to astir dividend payments, which typically get quarterly.

All of that sounds good, but this ETF is by nary means a escaped lunch. Last week, shares of Tesla dipped 9.75%, including a 2.59% nonaccomplishment connected Friday, aft the electric vehicle elephantine reported a slump successful fourth-quarter deliveries. The YieldMax ETF was worse for the wear, declining 10.69% connected the week and 3.14% connected Friday. Fortunately, investors person different options to see astatine the intersection of income and maturation stocks.

The Tesla ETF taps covered calls to make income, but there's a hitch with that strategy due to the fact that it caps upside. The issuer explicitly states this, and the illustration beneath confirms it.

Don't fearfulness if you're looking for precocious income connected growth stocks due to the fact that the NEOS Nasdaq-100 High Income ETF (NASDAQ: QQQI) is here. As its sanction implies, the NEOS ETF is an income-generating play connected the notoriously low-yield Nasdaq-100 Index.

Like its Tesla counterpart, this ETF is actively managed and utilizes covered calls to heighten its income profile. The similarities fundamentally extremity there. For example, the NEOS money pays a monthly dividend and sports a organisation of "just" 14.01%.

For what it lacks successful output comparative to the Tesla fund, the $7.41 cardinal Nasdaq income ETF has its stock of favorable traits. As 1 example, the NEOS ETF's astir important drawdown implicit the past twelvemonth was astir 300 ground points little than that of the Nasdaq-100 and importantly little than the astir sizeable drawdown by the Tesla fund.

To beryllium fair, the Tesla ETF has generated immoderate upside (just not arsenic overmuch arsenic Tesla itself), and it's worthy noting that nary covered telephone ETF delivers afloat upside information successful the underlying plus oregon index. Still, immoderate bash a amended occupation than others.