YieldMax's New ETF Taps Into Semiconductor Power With Weekly Income Promise

YieldMax has introduced a new product to its expanding lineup of income-producing ETFs, but this time it’s aimed at the semiconductor industry.

What Happened: The YieldMax Semiconductor Portfolio Option Income ETF CHPY, shares exposure to stocks in the chip industry with a variety of options strategies to produce regular income. The fund is priced at an expense ratio of 0.99%.

CHPY is actively managed and maintains a portfolio of 15 to 30 U.S.-listed semiconductor stocks, such as widely recognized names as NVIDIA NVDA, Broadcom AVGO, and Qualcomm QCOM. The fund also attempts to profit from market volatility by executing options trades in the form of covered calls, put-selling, credit spreads, and collars. The fund can switch to employing options on semiconductor companies or ETFs when liquidity in individual stock options is minimal or cost of trading is excessive.

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Why It Matters: In contrast to conventional equity ETFs, CHPY seeks to provide weekly income distributions.

The first payment is due April 16.

The income comes not only from option premiums but also from dividends on underlying positions and interest on short-term U.S. Treasuries that serve as collateral.

YieldMax indicates that investment choices are based on considerations such as liquidity, volatility of stocks, and price—considerations that both affect stock selection and options positioning.

Although the semiconductor industry has experienced high growth and volatility, CHPY’s approach seems geared to attract income-seeking investors in a high-momentum segment of the market without being dependent on capital appreciation alone.

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