22H·

ETF with a 40% payout

Hello, everyone,

The following ETF $CHPY (-0.9%) caught my eye with its currently extremely high dividend yield of 40% per year. I understand how the product works with the options that this ETF actively trades in AI stocks.

What do you think of this product as a small addition to a portfolio? Is it still too speculative? Will the price be eroded too much by the monthly distributions? Any other constructive thoughts on this?

Thanks, everyone!

11 Comments

NichtRelevant@NichtRelevant

21H

Haha, I checked that one out too. Unfortunately, I still need to finish building out the existing positions in my portfolio, but I think this one is seriously intense.
I’d really like to build a position in it—maybe I’ll go for it. Is it speculative? Yes. But you probably wouldn’t make it the core of your portfolio, after all. 😏

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Cut@Aktienliebe77

20H

@NichtRelevant Exactly, maybe 1–2% of the portfolio. I think it's extreme, too—especially since the AI is following that exact path... It's also questionable whether the dividends will stay that way. What's been holding you back so far, aside from your open positions?

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NichtRelevant@NichtRelevant

20H

@Aktienliebe77 Actually, really just the unfinished positions😅.
I always try to "finish building" what I've started first, so I don't end up with a jumble of tiny positions. I think that by the end of the year, I’ll have built up all the positions in my portfolio to their respective target sizes, and then I’ll add 1–2 new stocks—probably as part of a savings plan. The $CHPY is a strong candidate.

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Solitair@Solitair

21H

It has fallen from 66 to 50 since June, while virtually everything else has risen during that time. I think that really shows where things are headed.

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NichtRelevant@NichtRelevant

20H

I watched a video review of that ETF the other day. I just found the link again:
https://www.youtube.com/watch?v=Gv7fJ_zAEhw

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Cut@Aktienliebe77

20H

@NichtRelevant danke

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Smudo@Smudeo

21H

GQ shows a dividend of 9.5 euros
So about 10%, since the ETF's value is 50

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Cut@Aktienliebe77

21H

@Smudeo That's just the total paid out so far; the ETF is still pretty new... Check out Divvy Diary... The annual distribution is €20 🫣

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Chris@Psychedelic_Sunflower

20H

I don’t understand the product, but I’d say that sooner or later it’s going to be a money pit. Feel free to explain the product to me, though. A dividend yield that high is always a red flag and carries massive risk. Otherwise, everyone would be doing it—everyone could sell their global ETFs, and I could retire in my mid-30s.

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Kai@Dividenden-Sammler

14H

What's the difference between a dividend and a distribution? You should know!

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asset_sage_smmad@asset_sage_smmad

I think it's good we are going to have a market crash - I think it's healthy 🤣

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