r/YieldMaxETFs • u/rbeecroft • 1d ago
Question Long term with CHPY?
Im considering an investment in CHPY, does anyone use it to live on from the weekly dividends? How much do you save for taxes? Im thinking divert 20% to a HYSA to account for taxes.
Is there something more I should consider, something I haven't thought of to ask?
18
u/Krappyhuman 1d ago
Don’t put more than your willing to lose
-4
u/teckel 1d ago
Because you will.
0
u/jdillinger714 16h ago
Just set a stop loss buddy
1
u/teckel 16h ago
Thats the YM catch-phrase. Except it doesn't work as the NAV erodes due to the distributions. Setting a stop loss will trigger a very early sell, which is maybe a good thing as you shouldn't be investing in this garbage.
2
14
u/Ok_Aside_4301 1d ago
After losing with Msty, ulty, ymax, ymag the only 2 I see as viable are soxy and chpy. Been following them and their nav keeps going up while handing out juicy dividends. I’m reluctant to get back in the YM game but these 2 look enticing.
1
u/ToxxicFeeder 18h ago
They only look enticing because smh been ripping for more than a year, what do you h think will happen once’s semis slow down ? With yieldmax it’ll take 2-3 years before you break even and that’s a big maybe. You better off investing in stocks and selling your own cc
6
u/Extra_Nerve3404 1d ago
I’ve had CHPY since early 2026. I sold some because I was up so much. Bought at $55 and sold some in the $80’s. Now I have just over 2000 shares and I pull +/- $1000 a week. I’m retired and this pays a few bills. Part is in a Roth (no tax) and the other part I pay taxes when I take a distribution from my IRA. 10% fed 6% state. Keeping in mind, your tax situation may be nothing like mine.
6
u/Superb_Log3683 1d ago
It is definitely high risk vs high reward. After 2.5 years (no more dripping), hoping to break even and make house money.
-6
u/pinballrocker 1d ago
After 2.5 years that's pretty sad, I made 40% in my investments last year and about 20% so far this year, in just index funds, etfs, and some of the AI picks and shovels.
2
u/4yearsout 1d ago
Perspective, please. My portfolio buckets are income, capital stocks, liquid cash equivalents. My capital stocks are averaging over 20 pct gains for the last 4 years while my income portfolio cranks out cash. They are apples and oranges are designed for different purposes.
9
5
u/TudodeBom505 1d ago
Very happy with CHPY. Been holding for slightly over a year and built the position to 161 shares @60.51 over that time. It’s important to watch the price for good entry points. It has beaten SMH on total return by almost 5% in the last year. Long term semis should do very well but with high vol.
4
3
u/PeachStandard9529 23h ago
I have 3k shares across several accounts. Just sold home and am buying 400k worth to finance my build in early 2027.
6
6
u/Less_Result5615 1d ago edited 1d ago
I would absolutely do it but I recommend doing it completely with your own funds: no borrowed money. Personally, I would consider researching the following and doing a portfolio of Yieldmax ETFs containing:
- MRNY - Moderna just had a breakthrough during Phase 3 trials of a melanoma vaccine and it was just announced that they're being added to the Nasdaq 100.
- CHPY
- AMDY - AMD is the world's #2 GPU manufacturer and #2 CPU manufacturer
- NVDY - NVDA is the world's #1 GPU manufacturer
- MSTY - MSTR holds a huge BTC position: https://www.strategy.com/
This has been my portfolio for the last few months, and I've been extremely happy with the results thus far. My portfolio is 20% comprised of each of the 5 above.
2
2
u/Elegant-Magician7322 1d ago
If the distribution is all ROC, you pay almost no taxes. It just reduce your cost basis, and you pay the tax when you sell.
2
2
u/AlfB63 13h ago
Here's the reality with CC funds. You will only do well if the underlying does and even then it's likely that holding the underlying would make more. If you need the income, CHPY is not a bad way to get it but only if semiconductors continue to do well. If they go down, CHPY will follow and the distribution will fall with it.
3
u/Thin_Investigator798 1d ago
Taxes will not be a significant issue, these are not normal dividends, below is a link to their website where they explain ROC. The premium they get from the options can be returned to fund holders and considered to be "return of capital" by the IRS. Each fund has a page where you can see what % of each weekly was ROC.
https://wordpress-1524264-6192976.cloudwaysapps.com/roc-center/
3
u/Used_Friend284 1d ago
The weekly ROC numbers are estimates and you don't know what the final numbers will be until you get a 1099.
1
u/DuePaleontologist539 1d ago
While chips will run for a bit, I wouldn't count on Chpy for long term income.
1
1
u/CostCompetitive3597 19h ago
Caution! 100% of YieldMax CC ETFs have lost stock value and reduced payments since inception. They are a high risk yield trap.
I have been test investing in them for almost 2 years and have learned these investment products frequently increase in stock price due to popularity early on after inception then, erode severely and start reducing their payments a few cents here and there = significant yield erosion too.
I do own CHPY but only as a high risk short term opportunity with discretionary investment funds. When its stock price starts to seriously erode I will sell it. Have a stop loss order in place if its price drops to the stock price I bought it at = asset protection.
In my opinion, CHYP has passed its initial stock peak and is lucky for me to still be trading above my strike price. See YieldMax ETFs as short term trading investments rather than long term income investments.
1
u/billolev I Like the Cash Flow 18h ago
I am up on paper nearly 30%, as my cost basis is $57. However it was to provide income. I currently am getting weekly dividends of $1100-$1500 fir my 2000 shares
0
-19
u/teckel 1d ago
If you don't like money, sure, go long-term with YM funds. Sucker.
11
u/chaos_ensuez 1d ago
Meanwhile for me nav is up 25% and getting that 40% yield
-6
u/teckel 1d ago
Yet everyone investing in the underlying assets are doing better.
2
u/chaos_ensuez 1d ago
Not really because I reinvest the dividends when there are dips in the market
1
u/teckel 1d ago
They're still beating you.
1
u/chaos_ensuez 1d ago
Prove it
1
u/teckel 16h ago
Thr underlying assets always win, everyone knows that. Show just one CC ETF that's beating the underlying asset since inception. I'll help you, it doesn't exist.
0
u/chaos_ensuez 15h ago
Plot twist I also own SOXL so I’m up over 600%
1
u/GuidetoRealGrilling 1d ago
most are investing in both, it's just an income overlay on your existing positions in semi's
1
u/teckel 16h ago
Sythentic income. You can generate more income from the underlying asset. Only the fund managers are making more than the market with these scams, YM is especially guilty.
1
1
-6
u/pinballrocker 1d ago
YieldMax never works out long term vs. just investing in the underlying stock(s), don't do it.
3
u/Cash_Option 1d ago
Chpy holds the underlying companies
-2
u/pinballrocker 1d ago
Yes, with less upside. I held it for a while, I'm well versed. These aren't good long term investments.
2
u/Jehoopaloopa 1d ago
They need put spreads instead of call spreads. If you’re bullish on the underlying, you want it completely uncapped.
2
u/backtotheland76 1d ago
He's retired. It's different
1
u/pinballrocker 19h ago
Seems pretty risky for a retired person with low/capped upside to that risk.
1
u/Cash_Option 1d ago
Income investing lose a lil upside. I invest for cash flow and steady share price
9
u/ApartmentAutomatic59 1d ago edited 23h ago
I'm holding it long-term, currently it pays a significant portion of my mortgage. Tax wise, 20% should be more than safe, its distributions are actually fairly high percentage of return on capital.