The TSLY ETF Is an Income Monster

Many ETFs have come onto the market recently that use various options strategies to boost income. For example, some ETFs use covered call strategies to produce yields of 10% or more for investors from relatively low-paying portfolios of stocks.

YieldMax ETFs take this idea to the next level, using aggressive strategies to, as the name suggests, maximize yield. It's not uncommon for YieldMax ETFs to have dividend yields of 30%, 40%, or much higher in some cases.

One extreme example is the YieldMax Tesla Option Income Strategy ETF (NYSEMKT: TSLY), which uses call option strategies on (NASDAQ: TSLA) stock to produce a high level of monthly income. In fact, based on the past 12 months of dividends, the ETF has a dividend yield of about 127%.

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Source Fool.com