If Wall Street's Love Affair With Nvidia Ends, This ETF Could Be Toast
When the first thing that an exchange-traded fund (ETF) places on its website is a list of warnings, well, you should probably pay attention. And a list of warnings is exactly what you'll find at the top left of the Yieldmax NVDA Option Income Strategy ETF (NYSEMKT: NVDY) product-information page. Unfortunately, what appears to the right side will likely get much more attention -- a distribution yield of 77%! That's not a typo. There's a lot to think about, however, before you buy this ETF.
When dealing with risky investments, the Securities and Exchange Commission (SEC) usually makes a product sponsor spell out the risks so investors can clearly understand what they are getting into. Normally, however, those risks aren't placed front and center, and often get buried in a prospectus. The Yieldmax NVDA ETF has taken a radically different approach. Right at the top of its production-information website, it explains:
The Fund does not invest directly in NVDA.
Source Fool.com
