YieldMax has expanded its ETF lineup with the launch of the YieldMax Semiconductor Portfolio Option Income ETF (CHPY).
Listed on the NYSE Arca, this actively managed fund has an expense ratio of 0.99%.
CHPY’s Investment Strategy
CHPY aims to deliver both current income and potential capital appreciation via exposure to stocks of companies in the semiconductor industry. To achieve these objectives, the fund invests in a carefully selected portfolio of 15 to 30 U.S.-listed semiconductor company equities.
The fund seeks to generate income through the premiums it receives from a variety of options strategies using contracts tied to its different equity holdings. Those strategies can include covered calls, credit spreads, diagonal call spreads, cash-secured put-selling, calendar call spreads and collars, according to CHPY’s prospectus.
Top equity holdings at launch include industry giants like NVIDIA Corp, Broadcom Inc., and QUALCOMM Inc.
See More: 2025 Semiconductor Outlook: Investor Roadmap
YieldMax explains that the fund’s managers assess the liquidity of potential companies, along with factors such as stock price and volatility, when making investment decisions. These factors help determine whether to add new stocks or remove existing ones from the portfolio.
The fund may also hold cash or short-term U.S. Treasury bills as collateral for its options strategy. The yield provided by the T-bills also contributes to the ETF’s income.
CHPY plans to distribute income, if any, on a weekly basis, with the first distribution scheduled for April 16, 2025.
Tidal Investments serves as the fund’s subadvisor, with Jay Pestrichelli, Qiao Duan, and Christopher P. Mullen acting as the portfolio managers.
The addition of CHPY brings the issuer’s total offering to YieldMax family to 47 ETFs listed in the U.S., collectively managing more than $8.9 billion in assets.
For more news, information, and analysis, visit ETFdb.
