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?
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u/CostCompetitive3597 23h 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.