GraniteShares YieldBOOST Semiconductor ETF (SEMY)

The GraniteShares YieldBOOST Semiconductor ETF is an actively managed exchange-traded fund from GraniteShares, a fund sponsor known for leveraged single-stock and income-oriented products. The fund's main objective is to generate high current income tied to the semiconductor sector.

Funds in the YieldBOOST series generally pursue this goal by selling put options on a leveraged ETF linked to the reference exposure, here semiconductor stocks, while holding short-term U.S. Treasury securities as collateral. The option premiums collected are the main source of distributions. Because of this structure, the fund does not fully participate in gains of the semiconductor sector, while sharp declines in the referenced leveraged fund can lead to losses.