XFUNDS Launches DRMY, a New Semiconductor ETF That Sells Options for Monthly Income

A new semiconductor-themed income fund began trading on the NYSE Arca: the XFUNDS™ Memory Income ETF (NYSEARCA:DRMY). The fund is issued through Tidal Trust II, with Tidal Investments LLC as investment adviser and Nicholas Wealth, LLC as sub-adviser. Its prospectus is dated July 14, 2026.

DRMY carries a total annual operating expense ratio of 1.01%, which works out to roughly $101 a year on a $10,000 investment. That figure breaks down into a 0.99% management fee and 0.02% in other expenses, with no 12b-1 distribution fees. The fund’s primary objective is capital appreciation, with a secondary objective of current income.

What the Fund Does

DRMY is an actively managed ETF, meaning a portfolio team picks the holdings rather than following an index. It invests in what the prospectus calls “Memory Companies,” defined as businesses that derive at least 50% of revenues or profits from the design, development, production, or manufacture of memory-related semiconductor products or storage technologies. That covers high bandwidth memory (HBM), DRAM, NAND flash and SSDs, NOR flash and hard disk drives, and specialty or embedded memory products.

The portfolio is concentrated. The sub-adviser expects to hold approximately 8 to 15 companies, using a modified market capitalization weighting with a maximum weight of 25% for any single issuer. Holdings are rebalanced at least quarterly. Because so much of the world’s memory manufacturing sits in Asia, the fund expects to focus on issuers in the United States, South Korea, Japan, and Taiwan, gaining foreign exposure through American and Global Depositary Receipts.

The “Income” part of the name comes from an options overlay layered on top of the stock portfolio. According to the prospectus, the adviser sells and buys options on Memory Companies (or related ETFs and derivatives) to generate net option premiums, which are an important driver of the Fund’s cash distributions. The most frequently used tactics are synthetic covered calls, credit call spreads, and credit put spreads. In plain terms, the fund collects premium income by selling options, but the trade-off is that selling options may limit potential upside gains or increase downside risk. Covered-call and spread strategies typically cap how much investors benefit if the underlying stocks rally sharply.

Why It Exists and How It Stacks Up

The pitch is essentially two ideas in one wrapper: exposure to the memory-chip cycle, which has boomed alongside AI infrastructure demand, plus a stream of cash distributions from options premiums. That combination sits in a crowded corner of the ETF market. Broader semiconductor funds and single-industry “income” ETFs that pair equity exposure with covered calls have proliferated over the past few years, typically charging between roughly 0.35% and 1.00%. DRMY’s 1.01% fee sits at the higher end of that range, which is common for actively managed, narrowly focused option-income products.

Tidal Investments serves as adviser to a wide roster of niche ETFs launched through the Tidal Trust structure. Nicholas Wealth is the strategy sub-adviser behind the XFUNDS lineup. Distribution frequency and yield expectations for DRMY are not disclosed in the summary prospectus reviewed here, and portfolio turnover figures are not yet available given the fund’s brief operating history.

Who It Might Suit, and the Risks

DRMY is designed for investors who want targeted exposure to the memory-chip supply chain and are willing to trade some upside for option-generated cash flow. A few caveats deserve serious weight:

• The fund has essentially no performance history. Only three trading days of pricing data were available at publication, so there is nothing meaningful to judge yet.
• New ETFs often start with small asset bases and wide bid-ask spreads. Funds that fail to gather assets can close, which forces a taxable event for holders.
• Concentration is significant. With 8 to 15 holdings and a single-issuer cap of 25%, a bad quarter for one or two memory makers can move the fund noticeably.
• The options overlay caps upside in strong rallies and can create tax quirks around option premiums and distributions.
• Foreign exposure through depositary receipts brings currency and political risk, particularly given the fund’s expected weight in South Korea, Japan, and Taiwan.

The next things to watch are how quickly DRMY gathers assets, the size and consistency of any early distributions, and how the options strategy behaves through a full memory-industry cycle.

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