RDTY — YieldMax Russell 2000 Target Distribution ETF

The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by employing a synthetic covered call strategy, designed to generate weekly cash distributions from options premiums while also providing exposure to the price return of the Russell 2000Index (the “Index”) (described more below). In executing this strategy, the Fund will utilize call options that reference the Index or on passively managed ETFs that seek to track the Index’s performance (“Index ETFs”).

Additionally,the Fund will invest in short-term U.S. Treasury securities and money market funds to generate income from uninvested cash. Call Option Strategy The Fund’s synthetic covered call strategy involves a combination of selling and purchasing call options on the Index or on one or more Index ETFs. Each businessday, typically at market open or shortly thereafter, the Fund sells out-of-the-money (OTM) call options on the Index (or Index ETFs) with zero days to expiration (“0DTE”) meaning these options expire at the end of the same day they are sold.OTM options are those with a strike price above the current value of the Index.

The Fund, as the option seller, receives a premium(payment from the buyer) in exchange for the option. When the Fund sells call options, it receives a premium, but limits its potential upside from increases in the market value of the underlying asset to the sum of the option’s exercise price and the premium received. Accordingly, the Fund’s strategy is designed to generate consistent cash distributions, but with a cap on the Fund’sability to fully participate in market gains above the exercise price.

To establish synthetic long exposure to the Index, the Fund also purchases deep-in-the-money (ITM) call options on the Index (or Index ETFs). Deep-ITM call options are those where the current Index level is substantially above the strike price, providing the Fund with price exposure to the Index’s returns, similar to owning the Index’s securities directly. This is because Deep-ITM options have a price that moves nearly one-for-one with the Index due to their high intrinsic value, effectively mirroring the Index’s performance.This synthetic structure—combining sold call options for options premiums with purchased calls for Index exposure—characterizes the strategy as a “synthetic covered call,” as opposed to a traditional covered call, where a security is owned outright.

Options Premiums and Indirect Participation in Index Performance The Fund’s cash distributions are primarily generated by selling out-of-the-money 0DTE call options on a daily basis. The premium received from these call options is intended to contribute to the Fund’s income objective, but this approach may cap the Fund’s participation in potential Index gains. Specifically, if the Index appreciates beyond the strike price of the sold call options, the positions will limit the Fund’s potential upside, offsetting the gains from its long Index exposure.

For example, excluding the premium from the sold call, if the Fund sells call options 1% out-of-the-money and the Index appreciates by 3% on a given day, the Fund’snet return will be 1%. This is equal to the 3% gain from its long call exposure, reduced by the 2% loss on its sold call options. This strategy effectively converts a portion of the potential growth in the Index’s price return into options premiums, balancing the income objective with limited exposure to the Index’s upside.

Conversely, if the Index declines, the premiums earned on sold call options may partially offset losses from the Fund’s synthetic long position. Distributions may include a significant portion classified as return of capital (“ROC”). ROC generally represents a return of a shareholder’s invested capital rather than traditional income such as dividends or interest. See the prospectus section titled “Additional Information About the Funds” for more information about option premiums and ROC.

FLEX Options and European-Style Index Options The Fund’s investment in options includes both standard exchange-traded options and FLexible Exchange® options (“FLEX Options”), which allow for customization of key terms such as strike price, expiration date, and exercise style. Both exchange-traded options and FLEX Options are listed on regulated U.S. exchanges and are guaranteed for settlement by the Options Clearing Corporation (OCC), which mitigatescounterparty risk.

The options utilized by the Fund are index options and are cash-settled, “European-style” options,meaning they can only be exercised at expiration (in contrast to “American-style” options, which can be exercised at any time before expiration). Distribution Policy The Fund will seek to provide weekly cash distributions. The Fund will seek to generate such distributions in the following two ways: ● Writing (selling) call option contracts on the Index (or Index ETFs) as described above. ● Investing in short-term U.S. Treasury securities.

The income generated by these securities will be influenced by interest rates at the time of investment. Additional Fund Attributes The Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in 0DTE options contracts that use the Index as the reference asset. The Fund is classified as a “non-diversified”investment company under the 1940 Act, which means that the Fund may invest a high percentage of its assets in a fewer number ofissuers.

The Fund’s investment exposure will be concentrated in (or substantially exposed to) the same industry or group of industries to the extent the Index is so concentrated. There is no guarantee that the Fund’sinvestment strategy will be properly implemented, and an investor may lose some or all of its investment. None of the Fund, the Trust, the Adviser,or their respective affiliates makes any representation to you as to the performance of the Index. THE FUND, TRUST AND ADVISER, ARE NOT AFFILIATED WITH, NOR ENDORSED BY, THE INDEX.

Index Overview: The Russell 2000Index is a widely recognized benchmark index that tracks the performance of approximately 2000 small-cap companies in the United States. These are the smallest companies listed in the Russell 3000 Index, representing approximately 5% of that index’stotal market capitalization. The Russell 2000 is diversified and includes companies from various sectors such as financial services, healthcare, technology, consumer discretionary, indus trials, and others.The exact distribution can fluctuate over time due to market conditions.

In terms of volatility, the Russell 2000,being a small-cap index, tends to be more volatile than large-cap indices like the S&P 500 or the Nasdaq 100. Small-cap stocks can be more sensitive to changes in the economic climate and can experience larger price swings. Notable periods of volatility have included the dot-com bubble burst in 2000, the financial crisis in 2008, and the market turmoil caused by the COVID-19 pandemic in 2020. However, as with any index, the specific level of volatility can change based on broader market conditions.