ULTY Overview and Core Purpose

ULTY is an actively managed exchange-traded fund focused on generating current income while providing exposure to selected U.S. equities. The fund generally invests in 15 to 30 underlying securities chosen for the implied volatility potential of their options prices. This strategy aims to produce options premiums while allowing participation in the price changes of the selected equities.

Portfolio Construction Updates

To enhance ULTY's equity portfolio, YieldMax® is refining its construction strategy. The new model aims to provide:

• Balanced Exposure: Increased investments in underlying reference assets.
• High Volatility Equities: Investments will still focus on high volatility equities as the primary source for generating options premiums.
• Lower Volatility Large Caps: The addition of lower volatility large-cap companies to offer more net asset value (NAV) stability.

This revitalized structure is set to balance options premium generation with a smoother investor experience. Furthermore, ULTY's portfolio will expand investments across diverse sectors and asset classes whenever feasible.

Expansion of Option Strategies

The adjustments to ULTY’s options strategies are aimed at enhancing downside risk management while maximizing potential upside gains. Key strategies include:

• Selective Hedging: To mitigate the effects of market declines.
• Leveraged Options Strategies: Designed to capitalize on upward market movements.

These updates aim to reduce the impact of drawdowns without compromising ULTY's core objectives, reflecting YieldMax’s commitment to responsible risk management.

Distribution Outlook

As YieldMax® incorporates lower volatility equities and more protective option strategies, future distribution levels may be somewhat lower and less predictable. This shift is designed to strike a balance between generating attractive cash flow and ensuring stability and upside potential in the long term.

Understanding Distributions and Total Return

For investors, it’s essential to note that every ETF distributing payments will experience a decline in its NAV on the ex-dividend date. This is a natural occurrence due to cash leaving the ETF’s portfolio. Evaluating ULTY solely based on price returns can be misleading; a comprehensive analysis should also consider total returns, including distributions.

Commitment to Investors

These strategic updates reinforce ULTY’s core value proposition. The fund is dedicated to delivering attractive distributions while enhancing overall portfolio balance and improving the long-term experience for investors. The YieldMax team actively adapts its strategies in response to market dynamics, emphasizing transparency and disciplined management.

Risk Information

Investors are advised to carefully consider ULTY’s investment objectives, risks, charges, and expenses before investing. Detailed information can be found in the Fund’s prospectus and summary prospectus. Key risks include:

• Derivatives Risk: Exposure to financial instruments like options can lead to losses under specific market conditions.
• Equity Securities Risk: Investments can fluctuate significantly due to market volatility and economic developments.
• Distribution Risk: Distributions are not guaranteed, and capital returns may negatively affect NAV over time.

For further details on YieldMax strategies and to review the prospectus, visit www.YieldMaxETFs.com.