Experienced income investors are wary of yield traps, like the YieldMax MSTR Option Income Strategy ETF (MSTY), offering a high distribution rate of 75.1%. This ETF, linked to Bitcoin’s corporate owner, Strategy, doesn’t pay dividends but returns capitals to investors through distributions, with 94.7% as return of capital.

The YieldMax ETF is a covered call product, limiting upside potential despite Strategy’s and Bitcoin’s gains. Tax implications are significant, as Strategy’s premiums can be taxed at 37%, versus qualified dividends at 20%. NAV erosion from capital return may deter investors, outweighing the allure of high yields.

Tidal Trust II – YieldMax Mstr Option Income Strategy ETF may not be a wise investment choice, as it wasn’t recommended by the Motley Fool Stock Advisor team. The team identified 10 stocks with potential for significant returns, with an average outperformance of 946% compared to the S&P 500’s 196%. Consider alternative investment options for better growth opportunities.

Read more at Nasdaq.: YieldMax MSTR Option Income Strategy ETF: Buy, Sell, or Hold in 2026?