YieldMax™ Launches Short COIN Option Income Strategy ETF (FIAT)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 10 2024
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Source: Newsfilter
- Launch of FIAT ETF: YieldMax™ introduced the FIAT ETF, an actively managed fund that generates income from a synthetic covered put strategy on Coinbase Global, Inc., providing indirect short exposure to COIN.
- FIAT Portfolio Construction: The ETF's strategy includes synthetic short exposure to COIN, covered put writing, U.S. Treasuries for collateral, and out-of-the-money call options to cap potential losses.
- Investment Rationale for FIAT: FIAT aims to generate current income not tied to COIN's price depreciation, benefits from COIN share price decreases, has limited gains from such decreases, and does not involve leveraged short exposure.
- YieldMax™ ETF Family: FIAT is part of the YieldMax™ ETF family focused on delivering current income to investors, with various ETFs targeting different reference assets.
- Risk Disclosures: Detailed risk disclosures are provided for all YieldMax™ ETFs, highlighting specific risks related to investment strategies, counterparty risks, derivatives, distribution, liquidity, and more.
Analyst Views on FIAT
Wall Street analysts forecast FIAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FIAT is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 26.910
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Current: 26.910
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
