CHPY Dividend: Next Ex-Date, History & Total Return

The YieldMax® Semiconductor Portfolio Option Income ETF (CHPY) is an actively managed ETF that owns U.S.-listed stocks of semiconductor companies and sells options on them. The prospectus describes these as companies involved in the design, manufacture, or sale of semiconductors or semiconductor equipment, and says the equity portfolio will generally hold between fifteen and thirty of them. The fund's primary objective is to seek current income, with capital appreciation from those stocks as a secondary goal.¹

CHPY generally writes (sells) options on some or all of its stocks, collecting premiums from buyers who pay for the right to buy or sell at a set price. The prospectus calls these premiums an important driver of the fund's distributions. Each week the adviser uses one or more options strategies to seek net premiums, meaning premiums received minus premiums paid.¹

The strategy CHPY uses most often is a covered call spread, which the prospectus classifies as a type of selling credit spread: it sells a call option and buys another call at a higher strike, with both profit and loss capped. Dividends, if any, from the stocks add to income, and so do the fund's cash and short-term U.S. Treasuries, which also serve as collateral for the options.¹

Tidal Investments, CHPY's adviser, selects the semiconductor stocks, evaluating the liquidity of each potential company's common stock and options contracts along with price level and implied volatility, a measure of how much the market believes a stock's price will move in the future. It monitors those two factors when deciding whether to add new companies or remove existing ones.¹

Depending on the adviser's assessment of a holding's options, for example if they are insufficiently liquid or too costly, CHPY may use its options strategies on a Semiconductor ETF, meaning a passively managed, U.S.-listed ETF that seeks to track an index made up primarily of semiconductor companies. YieldMax describes the fund as selling call spreads on its portfolio holdings while maintaining direct equity exposure to participate in the potential share price appreciation of those companies.^1,2

The fund may invest in companies of any market capitalization, and its holdings may include companies from foreign countries, including emerging markets, and depositary receipts such as American Depositary Receipts. Under normal circumstances it invests at least 80% of its assets, plus borrowings for investment purposes, in semiconductor companies and in options on them or on Semiconductor ETFs. For that policy, a semiconductor company is one that generates at least 50% of its revenue from the design, manufacture, or sale of semiconductors or semiconductor equipment.¹

CHPY concentrates in the semiconductor industry, so conditions that hurt that industry may affect it more than a fund spread across many industries. Semiconductor companies may face intense competition, may rely on a limited number of suppliers, and make products that may face obsolescence due to rapid technological developments. Because CHPY is non-diversified, it may invest a greater percentage of its assets in a single issuer or a smaller number of issuers.¹

Selling options may limit CHPY's upside gains or increase its downside risk. YieldMax says the fund will capture only a portion of the gains if its stocks rise, yet is subject to all potential losses if they fall, which may not be offset by the income it receives.^1,2

Under derivatives risk, the prospectus says derivatives may result in larger losses or smaller gains than directly investing in securities. Under counterparty risk, CHPY holds its cleared options through accounts at clearing members, and margin it deposits may, in certain circumstances, be used to satisfy losses of the clearing member's other clients.¹

CHPY seeks to pay weekly, with no assurance of a distribution in any given week, and amounts will likely vary greatly. Its NAV typically drops by the amount of each distribution on the ex-dividend date, and repeated distributions may significantly erode NAV and trading price over time.¹

Foreign securities may experience more rapid and extreme changes in value than securities of U.S. companies, and emerging markets can involve additional political, economic, currency, or regulatory risks. Currencies the fund is exposed to may decline against the U.S. dollar. When the fund holds depositary receipts in place of the underlying shares, their return may not correspond precisely with those shares.¹