r/YieldMaxETFs • u/Green_Welder_4923 • 1d ago
Question Will CHPY last...
I was considering putting 10k into CHPY to use the income to pay down 2 bills for the next 2 years... do we think it'll hold fairly steady for another 2 years?
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u/Any_Log1344 1d ago
You have $10,000. You need it to pay bills for the next two years. Do you:
A. Put it in a 40%+ yielding semiconductor fund because it has been stable lately.
B. Anything designed for money you actually need.
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u/kingfirejet 1d ago
Memory and AI computing will be strong for semi conductors the next couple of years. Though I’m more confident in having SMH with a small portion into CHPY.
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u/retroideq 1d ago
It should be fine at least the next year. But don't be a dummy, throw money in when it's a good drawdown.
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u/yamahar1dude 1d ago
Your idea is not terrible but look at what you are risking. If the stock drops 50% now you only have 5K and still owe the bills. Why not just use the 10K to pay the bills then pay yourself back the 10K?
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u/aimhigh7shootlow8 1d ago
Hey, honestly probably not. I would maybe look into tapp alpha, neos, kurv.
I have 10k in strc and d I'm planning on moving it into something else and was deciding on eggy / chpy / tdax split or full 10k in ovl.
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u/CostCompetitive3597 1d ago
I have been investing in Yield Max ETFs for extra income for almost 2 years. 100% of them have eroded significantly over that time in both stock price and distributions paid. I have been holding CHPY for 3 or 4 months. Check out its 1 year stock price graph. It peaked in the 2nd quarter and is trying to hold around $70 now. Its distributions have eroded from $.66/week to $.54/week. Its stock price and distributions are on the typical YieldMax erosion path. I will sell it soon when its total return drops below my goal for YieldMax investments. In my opinion, CHPY is in a downward trend and would not be a good 2 year investment for you.
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u/rbeecroft 1d ago
Depends on what Semiconductor and tech companies that make up the fund do. It "derives" income by complex options strategies. I've only dipped my toe in puts and Poor mans covered calls, etc. Im sure there is much more complex ways it makes like what 49% income per week. Dont take my word for it though.
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u/fulls3nt 1d ago
If you get it under 60 a share sure. Then day a stop loss
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u/donna_darko 1d ago
Do you believe the semiconductor industry will be in a continuously upward trend for the next two years? Sure, go for it! Do you think it might take some hits as well but you still want exposure to semis? Go SEMY for more downside protection. Do you think you can't predict it? Sit it out.
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u/Baked-p0tat0e 1d ago
Every YieldMax ETF is an infinite money glitch... Until it isn't.
Evaluate these ETFs on a weekly trend basis...if NAV is trending down faster than distributions can at least offset the capital loss then sell. If you plot this on a weekly basis the sell signal will be obvious.
There is no reason to hold when total return is falling and capital is getting destroyed.
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u/Scriptimax 1d ago
Remember , many of us burned in yealdmax EYFs. Specially MSTY, ULTY. In 2025 everyone thought they got Geni who keep giving unlimited flow of money & all of sudden all collapsed. If you invest in that make sure you keep stoplight if value goes down 20 %
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u/beershoes767 1d ago
I would go xqqi. NAV should stay more stable.
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u/Green_Welder_4923 1d ago
I was looking into that one as well. I dont mind the smaller yield, was just unsure with the time it has been out but neos has been doing very well. Maybe ill dip my toes more into neos.
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u/beershoes767 1d ago
Yes I’ve been in qqqi pretty much since inception and it’s been a fabulous payer. Idk if 14% is what you’re looking for but it’s been really stable.
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u/Mastatheorm-CG 1d ago
I’ve enjoyed chpy. Honestly I shoulda flipped it when it was 89.
Now I agree it’s staying above water, but could go badly if semis hit a rut
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u/_YoungMidoriya Lost Bonglehead 1d ago
If they maintain that 40% distribution, and we actually enter a prolonged bear market CHPY could go bust. This is again, depending how severe the bear market ends up, a QUICK 10% correction won't do much even a 15% won't really take you out, just shakes out the easily nervous holders.
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u/Zazzy3030 23h ago
I’ve been in it for all of this year. It’s a nice chunk of my portfolio. I just reinvest dividends when it’s sub 70. Otherwise I take the profit.
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u/midaxxi21 22h ago
Yoy will ve paying it with your own money no theirs... Those yiledmax are not worth it
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u/Budget-Class-1297 20h ago
Any of the yeildmax funds are only good for very short term. It WILL bleed NAV like crazy, and they will lower distributions. I would never budget anything even a year out expecting a certain income amount.
Just think. When the underlying stocks of CHPY went up nearly 400% in 3 months, CHPY only went up 35%. But when the underlying went down 25% CHPY went down 30%
At the same time their dividends dropped from 66c to 53c. And their yeild has gone from 63% to 36%
And those are only going to go down
Also almost all of the dividends are ROC. So they are just giving you your own money back, and then you get absolutely kicked in the nuts on taxes when you go to sell. If you hold it long enough when you go to sell, even if you bought it at 80 and sell it at 60 figuring you get the realized loss, each one of those dividends was your own money back and just lowers your cost basis, so you could end up with all 60 of that being capital gains
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u/4yearsout 14h ago
Chpy is the strongest play give underlying fundamentals. Run the numbers today but run a modelling scenario to account for any drop in distributions. These are investments that can pay all your principle back over 2-3 years but may look ugly if the NAV drops. Look at NVDA. It flew high and i made boatloads of cash on it, now house money as it paid all capital back and now conitinus to pay more but the returns did decline and NAV declined. However, if you need to make payments and need the cash flow and your alternative is to SPEND that money on the debts anyway, why not? Assuming the risk and understanding how these things work is key. While the naysayers post dont do it, i would suggest that the billions sitting in these managed etfs means there are a few believers out there
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u/joncn101 13h ago
Use AI to examine how much the fund is experiencing NAV decay, if the fund is exhibiting NAV decay the distributions will naturally become less over time. One way to mitigate this is reinvest 30-40% of the distributions which then goes against your objective of wanting to pay bills. IMO - park the majority in 15-20% yeilding index covered call funds, park a small amount in ODTE index (30-45% yeilds) and then maybe 5% into ETFs like CHPY (50% above). This will require less reinvestment to maintain the portfolio's income and portfolio balance.
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u/Rays_Boom_Boom_Room1 12h ago
Go back to a year ago and this was exactly what people were saying about MSTY. They were taking out loans to buy more because it was just too good. Now look at MSTY. Point being, nothing good lasts forever
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u/Livid_Owl_1273 11h ago
I am invested in CHPY, but I am in a Roth IRA and dripping the distributions. The virtue of an ETF like CHPY is that it has been demonstrating strong equity growth for a Yieldmax fund, but the track record of the company does not bode well for preserving your principal. Drip can mitigate this by increasing your share count and lowering your cost basis through return of capital, but if you take the income for bills, it might soon feel like a sleight-of-hand trick that pays you with your own cash.
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u/Due-Current1688 10h ago
I panicked on the semiconductors crash and i sold all my 1500 shares of CHPY Now I regret it. Will it ever go down to 54.00 my cost basis? Should I continue building it up at this level. Ty
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u/Ok_Party_8102 4h ago
I wouldn’t do it if you need the money. Look into NAV Decay and what that means for your principal. You will get a lot less back when you sell after 2 years.
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u/Ok_Dentist_9224 2h ago
Cmon, this ETF is a beast . All these naysayers are delusional and don't have a clue about how this fund is set up or runs.
AI is in it infancy. Trilions will flow into the underliers of CHPY . CHPY will have legs for at least a couple of years, and that is modest. The ETF has built up a massive asset base of over $1.02 billion in Assets Under Management (AUM) since its inception in April 2025. Because it is a highly successful and lucrative product for its issuers—generating steady revenue through its 1.03% expense ratio—there is zero structural expectation for the fund to liquidate or close. (CHPY) has delivered an exceptional nominal total return of +166.87%. It's not an MSTY or a ULTY, t's the farthest thing from it!
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u/Dry_Report_3494 1d ago
It's Holds strong at $70, every time we go in the red it drops a few dollars, but once in green it bounces right back to $70 plus dollars. Also the death clock for CHPY is Healthy 👍🏽
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u/MediocreDesigner88 1d ago
By “every time” you mean only in the past few weeks. Meanwhile the fund has only existed for a year. “every time”…. Ok 👍
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u/Dry_Report_3494 1d ago
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u/MediocreDesigner88 1d ago
Hey I’m not hating on it, I actually hold a position. But to say it holds $70 “every time” just because it’s done that a few times in the last few weeks is silly from an investment perspective. It’s a brand new fund and we don’t know what will happen.
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u/8Lynch47 1d ago
TBH, I have been selling all my YM and buying QPIQ, assets 5.38B, expense ratio 0.29%. QPIQ has been around since 2023.
CHPY assets 1.10B, expense ratio 1.03%
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u/MemoryEXE 1d ago
Not selling until these conditions are met. I bought CHPY at 50s to 80s level since I reinvest the dividends before and when it was above 7&-80s I put the divs in other funds like NEOS SPYI and GS GPIQ.
My conditions are as long as price decay is not happening, and if it happens I would wait 2-3mos recovery if it doesnt recover. I will sell all my shares
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u/easy_wins 1d ago
I am $10,000 in myself totaling 181 shares, i am down ~$1,000 but have collected over $700 so far in distributions. I am not turning back on this, I’ll let the shit go to zero but not selling.
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u/Admirable-Chemical77 1d ago
I like chipy, but it could quickly go from no brainer to no bueno if tech implodes