YieldMax SMCI Option Income Strategy ETF (SMCY) has underperformed the underlying Super Micro Computer stock it was designed to shield from volatility, with a one-year total return of -26% versus -29% for SMCI itself.

SMCY launched on September 11, 2024 with a synthetic covered-call strategy on Super Micro Computer collateralized with Treasury bills. The fund holds roughly $117.7 million in assets, runs short SMCI calls at strikes like $29.50, $30.50, and $32, and charges a 1% expense ratio.

The fund's structure creates a structural mismatch: short calls cap upside participation when SMCI rises on positive news, while the fund absorbs full downside losses when SMCI falls on catalysts like the FY26 revenue guide cut from $40 billion to $33 billion in August 2025 and a Q3 revenue miss of 18%. SMCI has declined 54% from roughly $67 on August 1, 2024 to near $31.

SMCY's latest weekly distribution on May 14, 2026 disclosed by YieldMax was 97% return of capital and 3% income, meaning the fund is largely paying investors back with their own NAV rather than funding distributions from option income. One-year total return including distributions sits at -26%, while average annual return since inception is -28%.