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Start your 7-day free trial ARCX · Active · options-income
MSFO
YieldMax MSFT Option Income Strategy ETF
Tidal Investments LLC
Verdict
AVOID
Weighted score · 2.30 / 5
Fund Identity
What it is, who runs it, where it lives.
The Fund's primary investment objective is to seek current income.
MSFO is an actively managed ETF that employs a synthetic covered call strategy (and at times a synthetic covered call spread strategy) to generate options premiums while providing indirect exposure to MSFT's share price returns. The Fund gains synthetic long exposure to MSFT by purchasing at-the-money call options and selling at-the-money put options, then writes short-dated call options against that exposure to generate premium income. U.S. Treasury securities are held as collateral and provide additional income, with notional exposure to MSFT targeted at least 95% of total assets.
Ticker
MSFO
Issuer
Tidal Investments LLC
Exchange
ARCX
Inception
2023-08-25 · 2.8 yrs
Mgmt style
Active
Replication
Derivatives (options/futures) — synthetic covered call via exchange-traded and FLEX options on MSFT plus U.S. Treasury collateral; may also use swap contracts
Index-based
— · S&P 500 Total Return Index (used as broad market comparison in performance table only)
Leverage
None
Strategy & Options Mechanics
How the portfolio is built and where the income comes from.
PORTFOLIO
Options
actively managed
OPTIONS OVERLAY
Strategy
Synthetic covered call (long ATM call + short ATM put for synthetic long exposure, plus short near-term call options 0%-15% OTM for premium) and synthetic covered call spread (adding long higher-strike call to cap short call losses)
generates income
Underlying
MSFT (Microsoft Corporation common stock)
income exposure
WEEKLY
45.9%
DIST. RATE
94% ROC
Ordinary Income
Ordinary Income
Underlying
MSFT (Microsoft Corporation common stock)
Strategy
Synthetic covered call (long ATM call + short ATM put for synthetic long exposure, plus short near-term call options 0%-15% OTM for premium) and synthetic covered call spread (adding long higher-strike call to cap short call losses)
Tax
Ordinary Income
The Fund sells short-dated call options (1 month or less) struck approximately 0%-15% above the current MSFT share price to generate weekly income, while using purchased calls and sold puts (1-6 month terms) to replicate synthetic long exposure to MSFT at approximately 100% notional. The overall options package provides indirect exposure equal to at least 95% of total Fund assets in notional terms. The Fund rolls options continuously as they expire or are exercised.
Performance & NAV
Total return vs. the underlying, with drawdown context.
NAV HISTORY · JUN '25 – JUN '26
JUN '25JUN '26
Flat-NAV reinvestment hurdle
62.5%
Share of each distribution you’d need to reinvest just to hold NAV flat. Higher means more of the yield is your own capital coming back.
Distribution & Tax
Where the yield comes from — and how it’s taxed.
Composition · Recent Distribution
94%
ROC
Return of Capital — mixed94%
Net Investment Income6%
Frequency
Weekly
Dist. rate
45.91%
ROC %
94%
30-day SEC
not reported
Consistency
1 w/o cut
YOC · 1yr-ago buyer
27.5%
Tax Treatment — Ordinary Income
ORDINARY INCOME
Distribution Composition (Recent)
ROC is not free money — it lowers your cost basis. When shares are sold, capital gains are computed against the lower basis.
Composition · Narrative
Trailing-quarter return of capital averaged 93.6% of distributions (dollar-weighted across 13 distributions payable 3/27/26–6/22/26). Most recent distribution (6/22/26): 90.0% ROC. Single-week ROC is volatile for option-income funds; the dollar-weighted quarter is the steadier read.
Distribution & Return of Capital
Per-month payout split and the running return-of-capital share · last 12 months.
DIST ($/sh)ROC %
Return of capital ($/sh)
Net investment income ($/sh)
Monthly ROC %
Calendar-year ROC (YTD est.)
Distribution Growth & Schedule
Per-period growth of the payout, the latest schedule, and how long distributions take to repay NAV.
Distribution Growth by Lookback Period
Latest Distribution Schedule
Record date
2026-06-18
Ex-dividend
2026-06-18
Pay date
—
Payback Period
2.2 yr
Dist. Since Incep.
$15.2
Holdings & Concentration
Position sizing, top-name weights, and concentration risk.
Sector Mix · Tilt vs S&P 500
No sector feed for this fund.
Holdings
17
Top-10 Wt.
—
Technical Signal & Liquidity
Moving-average posture and a read on tradability.
Price vs. Moving Averages
$14.3$13.0$11.7$10.4
JUN '25JUN '26
Price $10.70
50-DMA $11.59
200-DMA $12.31
Bearish — 50-DMA below 200-DMA
Price $10.70 is below the 200-day SMA ($12.31); 50-day SMA $11.59. The 50-day SMA sits below the 200-day — an established downtrend, no recent crossover. Moving-average signals are a timing aid, not a recommendation — weigh them against the distribution profile and framework score.
Liquidity
Avg daily volume
96K
Avg dollar volume
$1,194,140
Bid/ask spread
0.17%
Premium/discount
-0.02%
Turnover
16%
Estimated bid/ask spread ~0.30% (moderate). Average daily dollar volume ~$1.2M (adequate). This spread is a high-low estimate, not a live quote; the issuer's reported median spread and premium/discount to NAV are shown above when available.
Assets Under Management
Trend: Stable. Source: shares×price (Massive, monthly).
AUM ($)
$82M
$146M$110M$74M
JUN '24JUN '26
SOURCES Massive market-data API, SEC EDGAR filings, issuer disclosures.
MSFO · 2026-06-21
Prepared by denvereyon
Research aid, not investment advice.
Prepared by denvereyon
Research aid, not investment advice.
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