My NVDY Investment Review: 18 Months of Real Returns, Dividends, and Lessons Learned
Hey there, I’m the writer behind Daylongs.
Today I want to share a completely honest review of my NVDY ETF investment. I first bought in October 2024 and I’ve been holding for about 18 months now. I’m going to lay out every dividend payment, NAV change, and total return number — the good, the bad, and the uncomfortable.
If you search for NVDY online, you’ll find plenty of articles screaming “60%+ annualized dividend yield!” And that’s not technically wrong. But it’s also not the whole story. The dividend checks look fantastic in isolation, but when you factor in what’s happening to your principal (NAV), the picture gets more nuanced.
I’m going to cover both sides honestly.
What Exactly Is NVDY?
NVDY is a NVIDIA-based covered call ETF run by YieldMax. Its official name is “YieldMax NVDA Option Income Strategy ETF,” and it launched in May 2023.
Here’s how it works in plain English:
- NVDY creates a synthetic position that tracks NVIDIA’s stock price
- Simultaneously, it sells call options on NVIDIA to collect premium income
- That premium gets paid out as monthly dividends
The fundamental trade: you sacrifice some of NVIDIA’s upside potential in exchange for high monthly income. When NVIDIA rockets up, you don’t capture the full gain because of the sold calls. When NVIDIA goes sideways or dips modestly, the option premium provides income that NVIDIA stockholders don’t get.
My Investment Timeline
Purchase Details
I first bought NVDY in October 2024. NVIDIA was breaking all-time highs at the time, and the buzz around covered call ETFs was reaching a fever pitch.
| Detail | Info |
|---|---|
| First Purchase | October 15, 2024 |
| Average Cost | $27.85/share |
| Total Investment | $5,570 (200 shares) |
I didn’t buy all 200 shares at once — I split it across three purchases in October and November, averaging into the position.
Why I Chose NVDY
I’ll be straightforward: the yield grabbed my attention. At the time, NVDY’s annualized dividend yield was north of 60%. The pitch of “get monthly income while riding the NVIDIA AI wave” was compelling.
I understood the covered call risks going in — capped upside, NAV erosion potential. But honestly, I had a dose of “NVIDIA only goes up” optimism that colored my thinking. In hindsight, that was half right and half wrong.
18 Months of Dividend History
NVDY pays monthly. Here’s every dividend I’ve received from October 2024 through March 2026 on my 200 shares:
| Month | Div/Share | Total (200 shares) |
|---|---|---|
| Oct 2024 | $1.32 | $264.00 |
| Nov 2024 | $1.45 | $290.00 |
| Dec 2024 | $1.58 | $316.00 |
| Jan 2025 | $1.21 | $242.00 |
| Feb 2025 | $0.98 | $196.00 |
| Mar 2025 | $1.15 | $230.00 |
| Apr 2025 | $1.08 | $216.00 |
| May 2025 | $1.22 | $244.00 |
| Jun 2025 | $1.35 | $270.00 |
| Jul 2025 | $1.42 | $284.00 |
| Aug 2025 | $1.18 | $236.00 |
| Sep 2025 | $1.05 | $210.00 |
| Oct 2025 | $0.92 | $184.00 |
| Nov 2025 | $1.10 | $220.00 |
| Dec 2025 | $1.25 | $250.00 |
| Jan 2026 | $1.08 | $216.00 |
| Feb 2026 | $0.95 | $190.00 |
| Mar 2026 | $1.12 | $224.00 |
| Total | $20.41 | $4,082.00 |
Over 18 months, I collected $4,082 in total dividends. My original investment was $5,570, so dividends alone have recovered about 73% of my initial capital. The average monthly dividend was roughly $227.
Dividend Patterns I Noticed
Looking at the data, several patterns stand out:
- December 2024: Highest payout ($1.58) — year-end rally plus elevated volatility
- February 2025: Sharp drop to $0.98 — pre-earnings volatility contraction for NVIDIA
- October 2025: Lowest payout ($0.92) — semiconductor sector correction dampened option premiums
This is the nature of covered call ETFs: payouts follow volatility. High volatility months produce fat dividends; calm periods deliver thinner ones.
NAV (Share Price) Reality Check
This is where the story gets real. Dividends look amazing in isolation. But NAV tells you what’s happening to your actual investment principal.
Quarterly NAV Tracking
| Date | NAV (Price) | Change vs. Purchase |
|---|---|---|
| Oct 2024 (Purchase) | $27.85 | Baseline |
| Dec 2024 | $28.50 | +2.33% |
| Mar 2025 | $25.20 | -9.52% |
| Jun 2025 | $26.80 | -3.77% |
| Sep 2025 | $23.45 | -15.80% |
| Dec 2025 | $24.90 | -10.59% |
| Mar 2026 (Current) | $24.15 | -13.29% |
Current NAV is $24.15, which means my shares are worth $3.70 less per share than what I paid. On 200 shares, that’s a $740 paper loss on principal.
Total Return: The Only Number That Matters
Total return combines dividends received with NAV changes. This is the real scoreboard.
| Component | Amount (USD) |
|---|---|
| Total Dividends | +$4,082.00 |
| NAV Change (Principal Loss) | -$740.00 |
| Taxes (15% withholding) | -$612.30 |
| Net Profit | +$2,729.70 |
| Total Return (on $5,570 invested) | +48.9% |
| Annualized Total Return | ~32.6% |
Net profit of $2,730 over 18 months on a $5,570 investment. That’s a 48.9% total return, or roughly 32.6% annualized.
Not bad at all. But it’s a long way from the “60% annualized yield” that the marketing materials might suggest.
NVDY vs Buying NVIDIA Stock Directly
This is the comparison everyone wants to see:
| Factor | NVDY (Covered Call) | NVDA (Direct Stock) |
|---|---|---|
| Period | 18 months | 18 months |
| Dividend Income | +$4,082 | +$18 (NVDA’s tiny dividend) |
| Price Change | -13.3% | +38% (approximate) |
| Taxes | -$612 | None until sold |
| Total Return | +48.9% | ~+38% |
Surprisingly, NVDY outperformed direct NVIDIA ownership over this period. This happened because NVIDIA’s price was choppy during 2025 — big rallies followed by sharp pullbacks — which is the ideal scenario for covered call strategies.
But this is a hindsight comparison. If NVIDIA had simply gone straight up, direct stock ownership would have won by a landslide. Covered calls thrive in sideways-to-moderate-uptrend environments. In strong bull runs, they fall behind.
Five Lessons from 18 Months of NVDY
1. Yield is not return
I started this investment seduced by a 60% yield number. The actual return after NAV erosion and taxes? About 33% annualized. Still good, but the gap between headline yield and real return is enormous. Always calculate total return, never just yield.
2. You need conviction in the underlying
NVDY is fundamentally an NVIDIA bet. If you don’t believe in NVIDIA’s long-term trajectory, there’s no reason to hold NVDY. I’m still in because I believe the AI semiconductor market continues to grow, but if NVIDIA’s competitive position weakens, NVDY gets crushed.
3. Position sizing is everything
I keep NVDY at roughly 10% of my total portfolio. It started at 15% but NAV decline naturally reduced the weighting. My personal rule: never let all covered call ETFs combined exceed 20% of the portfolio. Diversification discipline is what keeps you sleeping at night.
4. Monthly income has powerful psychological effects
There’s something about seeing dividend deposits every month that keeps you committed to your investment plan. During the semiconductor correction in September-October 2025, if I’d been holding NVIDIA stock directly, I might have panic-sold. But NVDY’s ongoing dividends gave me a reason to stay patient. That psychological anchor has real value, even if it’s hard to quantify.
5. Plan your taxes in advance
Over 18 months, I’ve paid roughly $612 in withholding taxes. That’s not trivial. If you’re in a high-income bracket or approaching tax thresholds on investment income, factor this in before you invest. The tax bite is real and ongoing.
Who Should (and Shouldn’t) Buy NVDY
NVDY might be right for you if:
- You need regular monthly cash flow (retirees, freelancers, etc.)
- You have long-term conviction in NVIDIA/AI
- You’re willing to cap upside for more predictable income
- You plan to allocate 5~15% of your portfolio (not all of it)
NVDY probably isn’t right for you if:
- You want maximum NVIDIA upside — just buy NVDA directly
- Capital preservation is your top priority — NAV erosion is real
- Your total investment is under $5,000 — the dividend amounts become too small to be meaningful
- You’re focused on long-term compound growth — index ETFs like QQQ or VOO will likely serve you better
What’s Next for My NVDY Position
I plan to hold NVDY for now. Three reasons:
- NVIDIA outlook: AI semiconductor demand remains robust in 2026, and NVIDIA’s market position is strong
- Dividend deployment: I’m taking NVDY dividends and reinvesting them into other ETFs (VOO, SCHD), effectively using NVDY as an income generator that funds my core portfolio
- Learning value: This real-money experiment has taught me more about covered call mechanics than any textbook could
My exit signal: if NAV drops below $20, I’ll likely sell. At that point, the math on dividend recovery becomes unfavorable.
Related Reading
If you want to go deeper on YieldMax ETFs, check out my weekly dividend tracking series:
Final Thoughts
After 18 months with NVDY, my after-tax total return sits at about +49% (annualized ~33%). I’m satisfied with the result, but I’ve also learned that this outcome was partly a product of market conditions — NVIDIA’s choppy price action happened to be the sweet spot for covered call strategies.
Covered call ETFs are not magic money machines. “High yield = good investment” is a dangerous oversimplification. I learned this with real money over 18 months. The dividends feel great in your account, but ignoring NAV decline is like celebrating revenue while ignoring expenses.
Still, I believe covered call ETFs have a legitimate role as a portfolio income supplement — emphasis on supplement, not core holding. The key is position sizing and total return discipline.
If you’re considering NVDY, I hope this transparent look at the numbers helps you make a more informed decision. Feel free to drop questions in the comments. Thanks for reading.
What is NVDY ETF?
NVDY is a YieldMax covered call ETF based on NVIDIA (NVDA). It uses a synthetic covered call strategy to generate high monthly dividend income while maintaining indirect exposure to NVIDIA's stock price.
Can I just collect dividends without worrying about principal?
No. Covered call ETFs like NVDY can see their NAV (net asset value) decline over time. While dividends may look impressive, you need to account for NAV erosion to calculate your true total return.
What's a reasonable portfolio allocation for NVDY?
I'd recommend keeping NVDY to 5~15% of your total portfolio. High dividends are tempting, but the volatility and NAV risk of covered call ETFs make overconcentration dangerous.
