Berkshire‐Based Options ETF Yields 2.78% While Treasuries Offer 4.15%
Since its June 2025 launch, YieldMax BRK.B Option Income Strategy ETF has returned -0.77% with a 2.78% dividend yield versus BRK-B’s -0.12% return. Its yield trails the 4.15% Treasury rate, and capped upside from synthetic covered calls constrains returns even as VIX climbs to 25.50.
1. ETF Structure and Strategy
YieldMax BRK.B Option Income Strategy ETF employs a synthetic covered call structure to replicate BRK-B exposure via options rather than holding shares directly. It sells call options above current prices to generate monthly premiums, distributes those premiums, and carries a net expense ratio of 0.01%.
2. Yield Comparison and Performance
Since launching in June 2025, the ETF has returned -0.77% while Berkshire Hathaway Class B shares returned -0.12%. The fund’s 2.78% dividend yield underperforms the 4.15% 10-year Treasury rate, raising concerns that the income does not compensate for complexity and capped upside.
3. Volatility Impact and Trade-Offs
The VIX has surged 44% in one month to 25.50, enriching option premiums and potentially boosting near-term distributions. However, Berkshire’s low volatility limits premium generation, and shareholders forgo any gains above sold strike prices if the stock rallies sharply.
4. Liquidity and Fund Size
With only $21 million in net assets, BRKC is a small, thinly traded product where wider bid-ask spreads can impact execution. Investors should consider liquidity constraints compared to direct BRK-B holdings before allocating significant capital.