BIOY vs XLII

BIOYFGraniteShares YieldBOOST Biotech ETF

XLIIAState Street Industrial Select Sector SPDR Premium Income ETF

In short

BIOY Most sector income funds sell calls on the sector itself. BIOY goes one level up: it sells puts on a 3x leveraged biotech ETF, mining the fat premiums that come with one of the market's twitchiest wrappers, and pays cash out weekly.

XLII Covered calls swarm tech; far rarer on machinery, railroads and defense primes. XLII owns the 1998-vintage industrials SPDR and sells short-dated calls on that fund itself, paying out monthly.

Stated mandate

BIOY The Fund seeks to generate three times the income from selling options on the S&P Biotechnology Select Industry Index through options on leveraged ETFs, while also seeking exposure to the leveraged ETF’s performance subject to a cap.

XLII The fund is actively managed to pursue current income while retaining the potential for long-term capital growth. It invests in XLI and sells call options on XLI to generate additional income.

Why people hold it

• BIOY The income engine is the whole point: writing puts on a 3x biotech ETF harvests the elevated implied volatility leveraged funds throw off, with distributions paid weekly.graniteshares.com
• It doesn't hold the leveraged biotech ETF. Exposure runs through the options book, aiming at 3x the income from selling options on the S&P Biotechnology Select Industry Index.graniteshares.com
• One ticker replaces a standing options program: strike selection, short-dated expiries and the weekly roll are handled inside a 1940 Act fund.graniteshares.com
• GraniteShares discloses that payouts can include return of capital, so the character of each distribution is documented rather than left to guesswork.graniteshares.com

• XLII Single-ticker build: it holds the industrials SPDR (XLI, running since 1998) and writes listed calls on that fund, so one trade buys the sector basket and the overlay.ssga.comssga.com 2
• Actively managed overlay, not a rigid formula: managers choose strikes and expiries rather than selling the same call every month. Distributions come monthly.ssga.com
• Priced at 0.35%, the going rate for sector covered-call funds, and among the stronger implementations in its peer group.
• Same 0.35% runs across the sibling sleeves (XLVI health care, XLUI utilities), so sector mixes cost the same per leg.etf.com

Worth knowing

• BIOY At 1.07%, the fee runs about triple the 0.35% median of its sector-overlay peer group, where the State Street Premium Income funds (XLVI, XLUI) sit.
• The payoff shape is lopsided: upside is capped by design while the put book absorbs the downside of a 3x daily biotech ETF, a tool built for one-day moves.
• Small and thinly traded, and it only started trading in 2026, so there is little history behind it and execution costs deserve attention.

• XLII Calls cap the upside: premium income is paid for by handing over part of any big industrials rally.ssga.com
• Fund-of-funds fee stacking. The plain industrials SPDR (XLI) it owns costs a small fraction of 0.35% on its own.ssga.com
• Launched in 2025, still small and thinly traded, so spreads can run wider than the underlying's.

Full BIOY profile⁠

Full XLII profile⁠