BlackRock estimates 86% of the iShares Nasdaq Premium Income Active ETF's October check was return of capital

BlackRock, the company behind the iShares funds, estimates that 86% of the $0.369 a share paid on Tuesday, October 6, by the iShares Nasdaq Premium Income Active ETF, ABALQ, was return of capital. In its notice for the Thursday, October 1 record date, 6% was net income and 8% was realized gains. Realized gains are profits the fund had already taken.

A return of capital, that notice says, can be the fund paying holders back money they invested. It does not necessarily reflect how the fund performed, and it should not be confused with yield or income.

The figures are estimates, not the final tax classification. Federal law requires the notice when a distribution is paid from a source other than the fund's net income.

The share price closed on Friday, October 9, at $57.92, up 17% from $49.32 at the end of 2025. The fund's fiscal year began on January 1, 2026. In the notice, distributions since then total $4.18 a share.

BlackRock estimates that 51% of what the fund has paid since January 1 was return of capital, against 86% of this month's check.

The check has fallen each month since July, from $0.692 to $0.369. The fund launched on December 2, 2025, holds $38 million, and has no payment from a year ago to set beside this one.

The large-cap check had no return of capital

The iShares U.S. Large Cap Premium Income Active ETF, ABALI, paid $0.177 a share the same day. The fund holds $1.5 billion.

BlackRock estimated that none of the check was return of capital. Net income was 24%, and realized gains were 76%.

In that same notice, BlackRock estimates that 37% of what ABALI has paid since January 1 was return of capital, even though this month's check had none.

The latest check is smaller than September's $0.214.

A 100% rate, and cash that covered the price drop

YieldMax on Wednesday, October 7, declared $1.0254 a share for the YieldMax AMD Option Income Strategy ETF, BAMDY. The shares went ex-dividend on Thursday, October 8, so a buyer that day did not get the payment, and the cash was paid on Friday, October 9.

YieldMax printed a distribution rate of 100.32% as of the close on Tuesday, October 6. The 30-day SEC yield was 2.12% for the period ended September 30.

The two rates do not measure the same thing. YieldMax calculates the distribution rate by annualizing that one payment, which includes option income, and dividing by net asset value, the value of what the fund owns per share. It says the rate is a single distribution and does not represent total return.

The SEC yield is the figure the Securities and Exchange Commission requires from a fund's net investment income, and YieldMax says it leaves option income out. Neither figure is the next check.

YieldMax estimates that 76% of Friday's payment was return of capital, and that 98% of the prior week's $0.9871 payment was.

The cash was far larger than the drop in the share price. From October 9, 2025 to Friday, October 9, 2026, the price fell $2.73, from $52.20 to $49.47, while the fund paid $37.63 a share.

The bond checks doubled, and the year did not

Three iShares funds that hold bonds and sell one-month call options on them paid on Wednesday, October 7, and each check was more than twice September's.

The iShares 20+ Year Treasury Bond BuyWrite Strategy ETF, ATLTW, paid $0.289 a share, against $0.131. The iShares High Yield Corporate Bond BuyWrite Strategy ETF, BHYGW, paid $0.373, against $0.179. The iShares Investment Grade Corporate Bond BuyWrite Strategy ETF, ALQDW, paid $0.381, against $0.155.

ATLTW is the largest of the three, with $1.7 billion.

The past year of payments is smaller, not larger. ATLTW paid $2.39 a share over its past twelve payments, 37% less than the twelve before. ALQDW's year is down 31%. BHYGW's is down 18%.

For the Treasury fund, the cash did not cover the drop in the share price. From October 2, 2025 to October 2, 2026, the price fell from $23.36 to $19.98. The $2.39 of cash covered all but $0.99 of that drop.