YieldMax lists an ETF on the LSE that actively trades in options income in the semiconductor sector

The ETF is issued by HANetf II ICAV, a vehicle domiciled in Ireland and authorised under the UCITS regulatory framework.

The YieldMax® Semiconductor Option Income UCITS ETF (ticker: CHPY) is an actively managed product that combines equity exposure to companies in the chip sector with a call option selling strategy to generate monthly tail income.

The strategy: income from options on a concentrated portfolio

CHPY invests in a selected portfolio of 15-30 listed companies active in the global semiconductor industry. Securities are selected based on criteria such as the liquidity of the shares and related options, price levels and implied volatility.

The fund’s primary objective is to generate current income. Income is derived primarily from the sale of call option contracts on the portfolio holdings, a technique that allows the fund to collect recurring premiums. The secondary objective is long-term capital appreciation through direct exposure to equities.

The mechanism of selling call options involves a trade-off: in exchange for premium income, the fund forgoes some of the potential growth of the underlying security if it exceeds certain price levels. Conversely, in the event of a market downturn, the equity exposure is full and the fund incurs losses like any traditional portfolio.

The management fee (TER) is set at 0.99% per annum. The ISIN code is IE000T8QD852.

A favourable market environment for semiconductors

The listing comes at a time of strong growth for the semiconductor industry. According to World Semiconductor Trade Statistics (WSTS) data, the global chip market is expected to close 2025 with an increase of 22.5%, exceeding £770 billion. Projections for 2026 indicate a further jump towards £1 trillion, driven by demand for artificial intelligence, data centres and memory chips.

Growth is concentrated in the logic and memory segments, which represent the core of high-performance computing and generative AI infrastructure.

The risk profile: high but volatile distributions

The latest monthly distribution, amounting to £0.5259 per share with an ex-date of 18 February 2026, was classified as 100% “return of capital” . This is a structural feature of many ETFs that use covered call strategies: a portion of distributions may consist of the return of invested capital, reducing the fund’s net asset value (NAV) over time. Investors should monitor this aspect because high distributions supported by return of capital may not be sustainable in the absence of corresponding growth in the securities in the portfolio.

HANetf consolidates its presence in Europe

The listing of CHPY strengthens the partnership between HANetf and YieldMax, which began in 2025 with the American company’s entry into the European UCITS market.