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UMAX

$24.55-0.16%Dividend / Income19/100
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BetaShares S&P 500 Yield Maximiser Fund · BetaShares

Data as at 29 March 2026

TL;DR

Holds S&P 500 stocks and sells call options over them to generate extra income. Monthly distributions are higher than a standard S&P 500 fund, but capital growth is capped when the market rises strongly.

MER (Annual Fee)
0.79%
#5 lowest in Dividend / Income
1Y Return
+2.3%
3Y Return (p.a.)
+12.5%
Dividend Yield
6.18%
Trailing 12 months
AUM
$281.7M
Assets under management
Avg Daily Turnover
$236K
Avg shares × unit price
Unit Price
$24.55
As at 29 March 2026
Provider
BetaShares
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Strategy

Tracks S&P 500 companies while selling call options to generate premium income distributed monthly. Managed by BetaShares. Launched September 2014.

Top Holdings

Key Fact

In years when the S&P 500 rose strongly — 2019 (+31%), 2023 (+26%), 2024 (+25%) — UMAX's capped upside meant it materially underperformed the underlying index on a total return basis. Investors receive higher income but forgo the capital growth.

Suited for

Income investors who want US equity exposure but prefer regular cash distributions over capital growth. Particularly suitable for investors in or near retirement who prioritise income over total return.

Risks

When the S&P 500 rises strongly, UMAX significantly underperforms because the sold call options cap upside participation. The covered call strategy is most beneficial in flat or moderately declining markets.

ETFCheck Score19/100
Fees (40%)0
Fund Size (25%)28
Liquidity (20%)21
Yield (15%)52
How scores are calculated →
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Frequently Asked Questions - UMAX

How does UMAX generate a 6.85% yield from US shares when the S&P 500 yields under 1.5%?+
UMAX holds S&P 500 shares and systematically sells call options over the index, collecting substantial option premiums that are distributed as income alongside the small underlying dividend. This covered call overlay transforms the low-yielding S&P 500 into a 6.85% income stream, but the option premiums are classified as unfranked foreign income by the ATO. Australian investors receive no franking credits on any component, making UMAX less tax-efficient than domestic dividend ETFs for those in higher tax brackets.
What are the currency risks of holding UMAX in an Australian portfolio?+
UMAX is unhedged, meaning Australian investors are exposed to AUD/USD currency movements on top of S&P 500 performance and option strategy returns. A rising Australian dollar would reduce UMAX's returns when converted back to AUD, while a falling AUD provides a tailwind - this adds a layer of volatility absent from domestic income ETFs like VHY or SYI. Investors wanting hedged US income exposure should note BetaShares does not offer a currency-hedged version of UMAX.
Why did UMAX return 10.2% when the S&P 500 gained significantly more over the same period?+
UMAX's covered call strategy caps participation in S&P 500 rallies because when the index rises above the strike prices of sold calls, UMAX surrenders those gains in exchange for the premium income already collected. During the past year's strong US equity bull market, this upside truncation meant UMAX's 10.2% total return substantially underperformed an unhedged S&P 500 ETF like IVV. Australian investors should only choose UMAX if they specifically need high current income and accept sacrificing capital growth potential.
How is UMAX treated for tax purposes in Australian SMSFs and personal accounts?+
UMAX distributions are entirely unfranked since they derive from US equities and option premiums, with no Australian franking credits available. US withholding tax of 15% typically applies to the dividend component under the Australia-US tax treaty, claimed as a foreign income tax offset on Australian tax returns. SMSF trustees in pension phase still benefit from zero tax on earnings but miss out on the franking credit refund advantage that makes domestic dividend ETFs particularly attractive for retirement accounts.