This 40%-Yielding ETF Just Got 20% Cheaper -- Are You Missing Out?

3 hours ago 1

Matt DiLallo, The Motley Fool

Tue, July 21, 2026 astatine 9:35 AM CDT 4 min read

There are high-yielding ETFs, and past determination is the YieldMax Semiconductor Portfolio Options Income ETF (NYSEMKT: CHPY). The money presently offers a jaw-dropping 40% output based connected its latest play organisation outgo and existent stock price, which has tumbled astir 20% from its caller peak.

Here's a look astatine whether you'd beryllium missing retired by not scooping up this ultra-high-yielding ETF portion it's cheaper.

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An instauration to CHPY

The YieldMax Semiconductor Portfolio Options Income ETF is an actively managed money with 2 mandates:

Generate existent income: CHPY seeks to cod enactment premium income by selling telephone spreads connected companies it holds. It aims to administer this income weekly.
Provide superior appreciation potential: The money holds a focused portfolio of 15 to 30 semiconductor stocks to seizure upside.

The money has achieved singular results with some objectives since its motorboat successful April 2025. CHPY has made a organisation outgo each week since its inception. It has grown its play 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, dissimilar galore ultra-high-yielding ETFs, this money has managed to turn its nett plus worth (NAV) per share. Despite the caller 20% drop, CHPY's stock terms is up implicit 57% since its inception. Add successful the lucrative play options income stream, and this ETF's full instrumentality is simply a robust 165%.

How CHPY delivers specified robust returns

The concealed to CHPY's occurrence lies successful its portfolio. The ETF holds a concentrated portfolio of the largest semiconductor stocks. These companies are among the leaders successful AI. For example, its apical holding is Nvidia (NASDAQ: NVDA), which accounts for 5.9% of its nett assets. Nvidia is increasing briskly (85% gross maturation successful its fiscal 2027 archetypal quarter) owed to robust request for its AI chips by hyperscale information halfway operators. This robust maturation is driving its stock terms up, which has surged astir 19% implicit the past year. Meanwhile, different apical holdings see Intel and Micron Technology, which person seen adjacent bigger rallies of 325% and 680%, respectively. These monster gains are helping CHPY present meaningful NAV-per-share appreciation.

Semiconductor stocks are besides highly volatile (nearly 5 times much than the S&P 500). As a result, their options person precocious premiums. CHPY is harvesting these precocious options premiums by selling telephone spreads (selling a telephone enactment supra the underlying's existent terms and buying different 1 astatine an adjacent higher price).

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