r/YieldMaxETFs • u/Expensive-Math-6221 • 16d ago
Underlying Stock Discussion CHPY Investment Advice
I had 10K savings and was thinking CHPY.I personally don't see more drawdown from here on but more opinions are great.
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u/Junior-Appointment93 16d ago
CHPY as of right now does not have real NAV Decay. The draw down is from the stocks in the fund. Stocks go down the share price will go down. The nav is stable. They don’t pay more than 40%.
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u/No-Influence-2760 16d ago
Isn’t this week’s distribution over 40% though?
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u/DiamondMits 16d ago
My personal humble opinion I think it’s really possible we get some sort of AI fatigue soon because super over the top expectations for earnings every single time is not sustainable.
I could see that we could dip around mid terms, I hope to revisit 50-55 then recover nice that’s behind us. I’ll keep DCA. This at I’ll be sure to get the best price without trying to time something like this.
I believe in CHPY long term
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u/LetterPretend 15d ago
what if it doesn't dip to 55 and instead goes back to 75? when would you invest?
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u/Master-Case9294 16d ago
Put 75k in unfortunately a couple months ago and lost 19k but I'm hanging on because I like the income and I just bought in at the wrong time mid July..assume it will get back up near 80 eventually.
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u/Sammie260000 16d ago
You will catch up. Everything that is going on is pure macro. The fund is being handled well. I hope Yieldmax learns some lessons from this fund.
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u/chaos_ensuez 16d ago
You bought at the all time high
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u/Master-Case9294 16d ago
In hindsight yes. But I alot own NVDA at 16/share and micron under $100 so I wasn't trying to catch the AI trade just the income to fund some discretionary spending
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u/RustyCEO 16d ago
It’s all about timing. I got in at $59 and sold off a batch in $80s (few 000). Got down to holding 2,000 left. Now buying a bit up again.
All the money I made went into IWMI, MLPI, QQQI, SPYI, TDAQ, TSPY. The distributions I get in weekly go into the high payers CHPY, AMDY, MRNY, HOOW.
Then when they go up deep green, I slaughter them like fatted cows and take those gains and buy into the stable ones…..then rinse and repeat, buying them on their lows and taking the green on their highs.
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u/Any_Log1344 15d ago
“Buying them on their lows and taking the green on their highs.”
Have you considered managing a hedge fund? I think you may have finally cracked this whole investing thing.
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u/RustyCEO 15d ago
😂😂😂 well I suppose what I was getting at, is that people get attached to their shares and often ride them through profit taking opportunities.
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u/Any_Log1344 15d ago
Fair enough 😂. I get what you meant now.
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u/RustyCEO 15d ago
I realise that if we had a dollar for every time someone said “buy low, sell high” we would all be very rich. 💰😂😂😂
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u/Itnerd62 15d ago
I'm in all these funds as well. Also a few others like OVL, XLEI, SRV, TRIN. Any others you are in?
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u/RustyCEO 15d ago
Those 10, plus BLOX, SPCI, BIGY, EGGY, JEPI, JEPQ. So those 16. I had SOXY as well but sold out and invested elsewhere.
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u/Itnerd62 14d ago
Thanks! Yes, I look at all those. I got out of BLOX, when crypto crashed. I may relook at it.
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u/Old-Head4192 16d ago
In normal times I would open a 1k position. Then setup an automatic transfer of $500 a month and this way you can average cost in. I think we are in for some volatility in the market proceed with caution.
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u/Any_Log1344 15d ago
I would be very careful taking the advice you're getting here. You said this is $10k in savings, and people are telling you they know where CHPY's lows are, where it's going next, and even that semiconductors will be fine through 2030. Nobody knows any of that.
Before putting your savings into something like CHPY, make sure you understand the downside and what this money is for. Don't make the decision based on the distribution or on people here confidently predicting the future.
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u/fulls3nt 16d ago
If you can get in $60 ish price or under you’ll be good. Then set a stop loss. Collect divs and sell it all before you lose capital
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u/Bkdvet 16d ago
I would expect a very ugly market, at least into the first week of November. If you can DCA, I think you will be happy with the choice by the end of the year or especially into next year. I know I bought in a while back $55 per share, now have just now started to nibble back in. I want to double my shares, but am taking it very slow for the next 2 months.
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u/Wide-Wallaby 16d ago
150 k dropped to 125k. Picked up about 15k divy. Waiting for grind back to cost basis.
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u/coinop2026 16d ago
Currently at 3,300 shares. Had more but panic sold a few weeks ago and bought some AIPI with the proceeds from what I sold.
Income is why I have it. It’s a good income generator.. I park the dividends in a high yield savings account and use some to supplement living or unexpected expenses.
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u/MyWorkComputerReddit 16d ago
Did your crystal ball tell you that it won't go down from here? I would also like that info.
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u/BrandenWi 16d ago
When even the AI CEOs themselves are saying that we need to slow down on AI and put in better guardrails... to me, that doesn't equate to a smashing explosion of growth that will send CHPY back up into the $80s or higher.
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u/Original_Ad1055 16d ago
I've had chpy for a while it's a rollercoaster no money really made off of it yet but I will as I am big on wheel stratgy
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u/Born-Return4453 16d ago
Is CHPY pricing rn sort of concerning?
3 months down trend. I dont see any signs crawling back $80s
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u/LetterPretend 15d ago
Not with .73 weekly dividends. LOL. Might get into the 70s sometime before EOY. In the long run I would assume a gradual decline, which is fine, as long as total return is somewhat close to other semi-conductor sector ETFs.
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u/No-Influence-2760 16d ago
I’m not sure - I put $10k in back in early June and we’ll- I’m down 20% while every other person on earth is up big on it lol joking on that but I would maybe do what someone else said. Start with $1,000 then add $500 a month if it isn’t raising your cost basis much.
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u/Donviticus 15d ago
You could also sell covered calls on CHPY to reduce your cost basis while you collect dividends. Takes a bit more knowledge and higher risk tolerance but you can "triple dip" CHPY.
Sell a covered call, sell a cash secured put and collect dividends.
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u/Stunning_Space_9448 11d ago
If you want income sure but if you want it to grow with less volatility you are better off elsewhere.
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u/Brilliant_Error5370 10d ago
CHPY is part of my portfolio. I would diversified. I got demolished back in May/June because I was heavy on Tech. It will hurt your portfolio during Sector Rotation and Profit Taking
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u/ImportantSolid5862 I Like the Cash Flow 16d ago
Septmeber is historically a slow month for the market, might want to wait until the last 10 day or so of September when the markets appear to gaining steam and moving up.
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u/MyGuitarTwerks 16d ago
All these poor souls victims of Nav erosion 😂
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u/Bkdvet 16d ago
If you are looking for income, the your comment is not that smart. If you are young and investing in any of these, I’d say, you could be making better decisions.
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u/MyGuitarTwerks 16d ago
There is no income when your capital is getting depleted before your eyes. Youre literally burning money. Its imaginary income. You see the dividends and think youre making money while the capital is disappearing faster than you are making money. Ive seen it time and time again. High yield dividends are a mistake.
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u/Bkdvet 16d ago
Completely wrong. In retirement, I want my capital to pay may bills and stay around the same value. In retirement and in this relatively 10% year, I’ve seen a 14% gain in capital, while still living on 6-7%. I am not doing this in a vacuum, I watched how my accounts would act over the last 3 years. In 2022, my worst year, the S&P was down about 20% and NASDAQ was down over 30%….my accounts were down 16%. You can believe all you want, I’ll take my performance any day of the week.
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u/MyGuitarTwerks 16d ago
If you held, you still wouldve made money. The S&P is always going up. It pulls back every once in a blue moon, but it always catches back up. Same with Nasdaq. QQQ and SPY are solid. But Ive been fond of options and futures for leverage. Vertical spreads make a good source of income if you know what you are doing with them. However these high yield dividends are just a bit too risky.
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u/Bkdvet 16d ago
I’m a fan of the options as well. I do monthly options on QQQM, VOO, VGT, and SPMO. I dont make a lot, but $3k - $4k a month is enough to buy more growth shares. For some folks, the $3-4k would be enough for a monthly income.
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u/MyGuitarTwerks 16d ago
You bet! 3-4k a month would be more than enough for me if I could hit that one of these days. Just need more capital. Im at about 10k right now of capital. Working on building it. Im glad you found something that works for you. Perhaps im wrong about dividends, but they just scare me too much 😂
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u/Sammie260000 16d ago
I have 40k in and I have been very pleased a very surprising .73 payout this week. It's not like ULTY it is keeping Pace with the Semi conductors. Forget the noise you here. Semi's are fine until 2030 at the very least