■ ETF · August 16, 2026
BIGY vs MSTY: Diversified Option Income ETF Targets 12% Yield
YieldMax's BIGY ETF offers a 12% income target from 50 blue chips, contrasting with MSTY's 68% decline and reduced payouts.
Comparing Two YieldMax Option Income Strategies
The YieldMax MSTR Option Income Strategy ETF (MSTY) and the YieldMax Target 12 Big 50 Option Income ETF (BIGY) both employ covered-call strategies to generate income, but their underlying holdings and risk profiles differ significantly. MSTY, which focuses on MicroStrategy, has seen its weekly distribution fall from $4.42 to $0.22, and its share price has declined 68.38% over the past year to $12.61. In contrast, BIGY, which holds a diversified basket of 50 large-cap U.S. stocks, has delivered a price gain of 18.04% over the same period while maintaining monthly distributions in the $0.49-$0.54 range.
BIGY's Diversified Approach
BIGY's portfolio includes top holdings such as NVIDIA (6.33%), Apple (6.15%), Alphabet (5.63%), and Amazon (5.47%). This diversification reduces the impact of any single stock's downturn, as the option premium is generated from a broad set of high-quality companies. The fund's stated annual income target is 12%, with a current yield near 11.99% and an expense ratio of 0.99%. Since December 31, 2025, BIGY is up 7.44% in price, and its trailing 12-month distributions total $6.511427, with forward annualized income of $6.2844.
Risk Considerations
While BIGY mitigates single-stock risk, it still faces market-wide risks. The covered-call strategy caps upside when mega-cap stocks rally, and distributions are variable and taxed as ordinary income. The fund's assets are modest at $26.1 million, which could lead to wider bid-ask spreads. A broad market downturn would affect all 50 holdings simultaneously.
What it means for income investors
BIGY offers a more diversified option-income approach compared to MSTY, potentially reducing the risk of severe principal loss while targeting a similar yield. However, investors should be aware that all option-income ETFs carry inherent risks, including capped upside and potential for principal erosion in adverse market conditions.
Reporting based on: 24/7 Wall St.. Figures verified against market data where available.