Generated July 2026 from current fund data.
Overview
Both CHPY and ULTY are covered-call ETFs from YieldMax that sell weekly call options on baskets of stocks to generate income. The key distinction is their underlying universe: CHPY focuses on semiconductor companies with a stated distribution rate of 40.95%, while ULTY targets high-volatility stocks broadly with a 61.35% distribution rate. Both use derivative overlays to amplify yield, but ULTY's higher payout and broader asset base reflect a materially different risk profile.
How they differ
ULTY's 61.35% distribution rate dwarfs CHPY's 40.95%, a spread that reflects both higher option premium capture from volatility and a greater reliance on return-of-capital treatment to sustain payouts. CHPY's beta of 1.86 signals amplified downside swings relative to the broader market, whereas ULTY's 1.36 beta suggests lower systematic leverage despite its higher yield. CHPY is also newer, having launched in April 2025, while ULTY has operated since February 2024, giving ULTY a longer track record through recent market cycles. Expense ratios are similar (CHPY at 1.03% versus ULTY at 1.14%), and AUM is comparable ($1.11B versus $914M), so the difference is structural, not operational cost.
Who each is best for
CHPY: Fits investors drawn to the semiconductor sector who seek elevated income within a covered-call framework but prefer lower yield exposure than ultra-income strategies. The 40.95% payout reduces reliance on return-of-capital treatment compared to strategies targeting 60%+ yields.
ULTY: Designed for income-focused investors with high risk tolerance who can absorb volatility and are willing to accept material NAV decay in exchange for yield substantially above equity market returns. Works for those explicitly seeking option-income strategies unconstrained by sector focus.
Key risks to know
* NAV erosion at extreme distribution yields. ULTY's 61.35% annualized payout is likely unsustainable from underlying price appreciation and dividends alone, implying substantial reliance on return-of-capital treatment and principal decay. CHPY's 40.95% yield also carries meaningful erosion risk, though less acute than ULTY's.
* Semiconductor cyclicality and concentration. CHPY's basket is limited to a single sector. Semiconductor downturns compress both underlying valuations and option premium, potentially collapsing both price support and income in tandem.
* Call assignment and upside capture. Covered-call structures systematically forfeit rallies beyond the strike price. ULTY's broader, higher-volatility mandate likely captures more premium but also caps gains more severely during strong market runs.
* Beta amplification. CHPY's beta of 1.86 means a 10% market decline could translate to an 18.6% fund decline, compounding losses when option income cannot offset equity depreciation. ULTY's 1.36 beta is lower but still elevated versus broad equity benchmarks.
* Early performance window. CHPY's April 2025 inception is extremely recent, leaving no real performance history through market stress. ULTY has been live since early 2024, but even that window is narrow for assessing multi-cycle sustainability.
Bottom line
If you prioritize sector focus and moderate yield within an income-overlay structure, CHPY's semiconductor basket and 40.95% distribution involve a narrower bet than ULTY. If you're seeking maximum current income and can tolerate both broad-market volatility and likely principal erosion, ULTY's 61.35% distribution stands out—but both funds' extreme payouts depend critically on option premium and return-of-capital mechanics that may not hold during market dislocations. Past performance does not guarantee future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
