NLY vs. NVDY

Last updated Jun 9, 2026

NLY (Annaly Capital Management, Inc.) is a stock, while NVDY (YieldMax NVDA Option Income Strategy ETF) is Derivative Income fund actively managed by YieldMax. Over the past 3 years, NLY returned 16.16%/yr vs 53.70%/yr for NVDY. At a 0.21 correlation, their price movements are largely independent.

Performance

NLY vs. NVDY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Annaly Capital Management, Inc. (NLY) and YieldMax NVDA Option Income Strategy ETF (NVDY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NLY achieves a -3.07% return, which is significantly lower than NVDY's 10.31% return.

NLY

• 1D: -1.23%
• 1M: -7.30%
• YTD: -3.07%
• 6M: -1.18%
• 1Y: 25.88%
• 3Y*: 16.16%
• 5Y*: 1.37%
• 10Y*: 5.29%

NVDY

• 1D: 1.46%
• 1M: -2.61%
• YTD: 10.31%
• 6M: 11.29%
• 1Y: 42.27%
• 3Y*: 53.70%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

NLY vs. NVDY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
NLY Annaly Capital Management, Inc.	-3.07%	40.00%	8.07%	13.52%
NVDY YieldMax NVDA Option Income Strategy ETF	10.31%	27.38%	114.23%	41.31%

Correlation

The correlation between NLY and NVDY is 0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.07
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (All Time) Calculated using the full available price history since May 11, 2023	0.21

The correlation between NLY and NVDY shifts across timeframes, from 0.07 (1 year) to 0.21 (all time), reflecting how their relationship changes across market environments.

Return for Risk

NLY vs. NVDY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NLY

NLY Risk / Return Rank: 76
NLY Sharpe Ratio Rank: 81
NLY Sortino Ratio Rank: 75
NLY Omega Ratio Rank: 74
NLY Calmar Ratio Rank: 73
NLY Martin Ratio Rank: 77

NVDY

NVDY Risk / Return Rank: 53
NVDY Sharpe Ratio Rank: 48
NVDY Sortino Ratio Rank: 46
NVDY Omega Ratio Rank: 45
NVDY Calmar Ratio Rank: 72
NVDY Martin Ratio Rank: 52

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NLY vs. NVDY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Annaly Capital Management, Inc. (NLY) and YieldMax NVDA Option Income Strategy ETF (NVDY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	NLY	NVDY	Difference
Sharpe ratio: Return per unit of total volatility	1.40	1.53	-0.12
Sortino ratio: Return per unit of downside risk	1.97	2.06	-0.09
Omega ratio: Gain probability vs. loss probability	1.24	1.26	-0.02
Calmar ratio: Return relative to maximum drawdown	1.75	3.31	-1.57
Martin ratio: Return relative to average drawdown	5.22	8.03	-2.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NLY vs. NVDY - Sharpe Ratio Comparison

The current NLY Sharpe Ratio is 1.40, which is comparable to the NVDY Sharpe Ratio of 1.53. The chart below compares the historical Sharpe Ratios of NLY and NVDY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	NLY	NVDY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.40	1.53	-0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.05	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.19	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.30	1.59	-1.29

Drawdowns

NLY vs. NVDY - Drawdown Comparison

The maximum NLY drawdown since its inception was -60.09%, which is greater than NVDY's maximum drawdown of -34.08%. Use the drawdown chart below to compare losses from any high point for NLY and NVDY.

Drawdown Indicators

	NLY	NVDY	Difference
Max Drawdown Largest peak-to-trough decline	-60.09%	-34.08%	-26.01%
Max Drawdown (1Y) Largest decline over 1 year	-14.88%	-12.81%	-2.07%
Max Drawdown (3Y) Largest decline over 3 years	-26.70%	-34.08%	+7.38%
Max Drawdown (5Y) Largest decline over 5 years	-51.97%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-60.09%	—	—
Current Drawdown Current decline from peak	-11.17%	-8.93%	-2.24%
Average Drawdown Average peak-to-trough decline	-13.75%	-6.16%	-7.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.97%	5.28%	-0.31%

Volatility

NLY vs. NVDY - Volatility Comparison

The current volatility for Annaly Capital Management, Inc. (NLY) is 3.97%, while YieldMax NVDA Option Income Strategy ETF (NVDY) has a volatility of 10.13%. This indicates that NLY experiences smaller price fluctuations and is considered to be less risky than NVDY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NLY	NVDY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.97%	10.13%	-6.16%
Volatility (6M) Calculated over the trailing 6-month period	14.66%	21.34%	-6.68%
Volatility (1Y) Calculated over the trailing 1-year period	18.56%	27.86%	-9.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.54%	38.29%	-12.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.12%	38.29%	-10.17%

Dividends

NLY vs. NVDY - Dividend Comparison

NLY's dividend yield for the trailing twelve months is around 13.36%, less than NVDY's 64.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NLY Annaly Capital Management, Inc.	13.36%	12.52%	14.21%	13.42%	16.70%	11.25%	10.77%	11.15%	12.22%	10.09%	12.04%	12.79%
NVDY YieldMax NVDA Option Income Strategy ETF	64.50%	83.10%	83.65%	22.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both NLY and NVDY in my portfolio?

NLY and NVDY have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NLY or NVDY?

NVDY has higher volatility (10.13%) compared to NLY (3.97%). In terms of maximum drawdown, NLY dropped -60.09% vs NVDY's -34.08%.

Which has better risk-adjusted returns?

NVDY currently has the higher Sharpe Ratio (1.53 vs 1.40), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.