The post If you invested $1,000 in this Nvidia ETF at the start of 2024, you’d now have this much appeared on BitcoinEthereumNews.com.

Nvidia (NASDAQ: NVDA) has been one of the standout success stories of the last two years — with a firm competitive advantage, growing demand from booming industries, and plenty of hype to boot, the semiconductor company has managed to secure impressive returns. At press time, NVDA stock is trading at $140.85 — having rallied by 14.04% in the last thirty days, 60.53% over the course of the last six months, bringing year-to-date (YTD) returns up to 192.47%. NVDA stock price YTD chart. Source: Finbold Unfortunately, this rapid growth comes at a cost, albeit a bearable one — in the race to maintain cutting-edge tech, the chipmaker isn’t in a position to pay out large sums in the form of dividends, making the stock much less attractive to income investors. Simply put, the dividend isn’t worth it — the last quarterly dividend, paid out on October 3, was just $0.010 per share — for reference, this would net investors roughly $0.28, or a quarter, on an investment worth $1,000. That’s not to say that investors focused on passive income cannot benefit from Nvidia, however — there is one specific exchange-traded fund (ETF) offering more than 50% in dividend yield that warrants a closer look. NVDY offers steady income from NVDA The fund in question is the YieldMax NVDA Option Income Strategy ETF (NYSEARCA: NVDY). To sustain the high yield rates that it has become renowned for, the ETF uses a blended strategy that relies on selling options and investing in short-term Treasury instruments. Options are utilized by way of covered calls — the fund sells call options on Nvidia in order to collect premiums while holding the stock, while also taking advantage of options spreads. The short-term Treasury investments provide a component of steady income, lower risk, and stabilize cash flow.…

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Filed under: News - @ October 25, 2024 1:22 pm