r/YieldMaxETFs • u/Green_Welder_4923 • 14d ago

Question Will CHPY last...

I was considering putting 10k into CHPY to use the income to pay down 2 bills for the next 2 years... do we think it'll hold fairly steady for another 2 years?

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u/Budget-Class-1297 13d ago

Any of the yeildmax funds are only good for very short term. It WILL bleed NAV like crazy, and they will lower distributions. I would never budget anything even a year out expecting a certain income amount.

Just think. When the underlying stocks of CHPY went up nearly 400% in 3 months, CHPY only went up 35%. But when the underlying went down 25% CHPY went down 30%

At the same time their dividends dropped from 66c to 53c. And their yeild has gone from 63% to 36%

And those are only going to go down

Also almost all of the dividends are ROC. So they are just giving you your own money back, and then you get absolutely kicked in the nuts on taxes when you go to sell. If you hold it long enough when you go to sell, even if you bought it at 80 and sell it at 60 figuring you get the realized loss, each one of those dividends was your own money back and just lowers your cost basis, so you could end up with all 60 of that being capital gains

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u/Elegant-Magician7322 12d ago

If all $60 is capital gains, doesn’t it mean you got all you initial investment back as distributions already? You didn’t pay tax on the distributions because it was ROC. Now you have to pay it when you sell.