GraniteShares YieldBOOST Biotech ETF (BIOY)

The GraniteShares YieldBOOST Biotech ETF (BIOY) is an income-oriented fund from GraniteShares whose strategy is linked to the biotechnology sector.

Like other funds in the YieldBOOST series, it seeks income by selling short-dated put options tied to leveraged exposure on its reference asset, here a biotechnology-focused benchmark or fund, while holding most of its assets in short-term U.S. Treasury securities and cash equivalents as collateral. The premiums collected from selling these options are the primary source of the fund's regular distributions.

Because of this design, the fund does not own biotechnology stocks outright and does not fully share in sector rallies. Significant declines in biotech prices can result in losses on the options it has written.