Generated June 2026 from current fund data.
Overview
CHPY and ULTY are both YieldMax weekly-distribution covered-call ETFs that sell options against diversified baskets of stocks to generate income. The key difference is asset composition: CHPY focuses on semiconductor companies and targets a moderate-volatility basket, while ULTY targets high-volatility stocks across broader sectors and employs explicit hedging to dampen portfolio swings.
How they differ
CHPY's 49.58% distribution rate versus ULTY's 68.64% reflects the underlying volatility profiles and hedging strategy. ULTY's higher yield comes from writing calls against a high-volatility basket with an added hedging layer, which allows for more aggressive option premiums; CHPY captures call premiums from a sector-focused, lower-volatility group of semiconductors. Second, beta tells the structural story: CHPY has a beta of 1.86, meaning it amplifies broad market moves, while ULTY's 1.36 beta shows the hedging is dampening downside swings relative to the market. Third, AUM and inception dates reflect different trajectories—CHPY launched in April 2025 with $1.11B in assets, while ULTY has been operating since February 2024 with $914M, suggesting CHPY attracted rapid inflows as a newer entrant to the semiconductor-covered-call space.
Who each is best for
CHPY: Fits investors who are comfortable with sector concentration and want to harvest call premiums from semiconductor volatility while accepting above-market sensitivity to broad equity swings. The weekly distribution suits income-focused investors with shorter rebalancing horizons and moderate loss tolerance.
ULTY: Designed for income investors who prioritize downside cushion and are willing to accept a lower (but still elevated) distribution yield in exchange for a hedged structure that moderates portfolio swings. Weekly distributions appeal to those seeking frequent reinvestment opportunities across a broader set of high-volatility names.
Key risks to know
- NAV erosion at extreme distribution yields. Both funds distribute far above historical stock returns; ULTY's 68.64% annual rate is particularly susceptible to NAV decay if underlying volatility or call premiums compress. Even CHPY's 49.58% leaves little room for capital appreciation before distributions begin to rely on return-of-capital treatment.
- Concentrated sector exposure in CHPY. Semiconductors are cyclical and capital-intensive; a downturn in chip demand or geopolitical supply-chain disruption could hurt the entire basket simultaneously, whereas ULTY's high-volatility basket spans more sectors and offers greater diversification.
- Hedging cost drag in ULTY. The protective hedges that lower beta also consume a portion of option premiums, reducing gross yield relative to an unhedged strategy. If volatility stays elevated, hedges may be expensive insurance; if volatility drops sharply, the hedge locks in opportunity cost.
- Options market liquidity and call strikes. Both funds depend on liquid options markets to execute their weekly calls. Widening bid-ask spreads or limited strike availability during market stress could impair the fund's ability to achieve its target premium or rebalance efficiently.
Bottom line
CHPY offers higher nominal yield and pure semiconductor exposure for investors accepting elevated portfolio volatility; ULTY trades some yield for explicit downside protection and sector diversification. Both carry meaningful NAV erosion risk at their stated distribution rates and depend on sustained options market liquidity. Your choice hinges on whether you prioritize maximum current income and sector focus (CHPY) or prefer a modest yield cushion and hedged volatility profile (ULTY). Neither offers traditional capital appreciation—both are income vehicles that may erode principal over time.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
