There are high-yielding ETFs, and then there is the YieldMax Semiconductor Portfolio Options Income ETF (NYSEMKT: CHPY). The fund currently offers a jaw-dropping 40% yield based on its latest weekly distribution payment and current share price, which has tumbled nearly 20% from its recent peak.
Here's a look at whether you'd be missing out by not scooping up this ultra-high-yielding ETF while it's cheaper.
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The YieldMax Semiconductor Portfolio Options Income ETF is an actively managed fund with two mandates:
Generate current income: CHPY seeks to collect option premium income by selling call spreads on companies it holds. It aims to distribute this income weekly.
Provide capital appreciation potential: The fund holds a focused portfolio of 15 to 30 semiconductor stocks to capture upside.
The fund has achieved remarkable results with both objectives since its launch in April 2025. CHPY has made a distribution payment every week since its inception. It has grown its weekly payout from $0.362 to $0.5925 per share. However, its payout has been volatile, ranging from $0.3454 to $0.7743 per share.
Meanwhile, unlike many ultra-high-yielding ETFs, this fund has managed to grow its net asset value (NAV) per share. Despite the recent 20% drop, CHPY's share price is up over 57% since its inception. Add in the lucrative weekly options income stream, and this ETF's total return is a robust 165%.
The secret to CHPY's success lies in its portfolio. The ETF holds a concentrated portfolio of the largest semiconductor stocks. These companies are among the leaders in AI. For example, its top holding is Nvidia (NASDAQ: NVDA), which accounts for 5.9% of its net assets. Nvidia is growing briskly (85% revenue growth in its fiscal 2027 first quarter) due to robust demand for its AI chips by hyperscale data center operators. This robust growth is driving its share price up, which has surged nearly 19% over the past year. Meanwhile, other top holdings include Intel and Micron Technology, which have seen even bigger rallies of 325% and 680%, respectively. These monster gains are helping CHPY deliver meaningful NAV-per-share appreciation.
Semiconductor stocks are also highly volatile (nearly five times more than the S&P 500). As a result, their options have high premiums. CHPY is harvesting these high options premiums by selling call spreads (selling a call option above the underlying's current price and buying another one at an even higher price).
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