Roundhill Investments, based in New York, is pleased to announce ETF distributions for XDTE, QDTE, and RDTE effective November 1, 2024. Roundhill, known for its innovative financial products, provides unique opportunities through its various exchange-traded funds. The Roundhill S&P 500® 0DTE Covered Call Strategy ETF and the Roundhill Innovation-100 0DTE Covered Call Strategy ETF exhibited a 30-Day SEC Yield of -0.43% and -0.41%, respectively, as of September 30, 2024. However, the Roundhill Small Cap 0DTE Covered Call Strategy ETF's yield was not available at the time of reporting. The gross expense ratio stipulated for XDTE, QDTE, and RDTE is 0.95%, a reflection of the costs associated with these specialized investment vehicles. It's imperative for investors to note that past performance is not indicative of future results.
The investment value may rise or fall, with current performance potentially deviating from past results. Investors wishing to gauge recent standardized and month-end performance results for these funds can do so by examining Roundhill Investments' offerings for XDTE, QDTE, and RDTE on their website. These funds aim to provide weekly distributions, though conditions may cause actual distributions to vary from expected rates. Market conditions may lead to distributions surpassing the funds' annual income and gains, potentially resulting in a return of capital. This return should be closely examined for its implications regarding long-term sustainability.
Investors are encouraged to view the Supplemental Tax Information for comprehensive insights into the distribution components. Roundhill Investments, established in 2018, has made strides as an SEC-registered advisor by launching a range of thematic ETFs. The firm focuses on thematic equity, options income, and distinct trading vehicles, backed by a team with substantial ETF expertise. Pursuing informed investments also entails recognizing the inherent risks present. The funds carry risks such as options, liquidity, and market risks, alongside specific challenges posed by strategies like covered calls and 0DTE options.
Covered call strategies, while potentially lucrative through premium collection, involve surrendering upward gains beyond exercise prices and facing similar risks to writing put options in terms of price declines. Additionally, market volatility might disrupt options trading, a critical factor for options sellers aiming for strategic financial moves. The use of FLEX Options, which are customized option contracts, might pose risks if liquidity issues arise or if the Options Clearing Corporation (OCC) fails in its settlement obligations. The newly popularized 0DTE options carry particular sensitivities to market changes due to their shorter expiration periods, affecting their liquidity and trade timing.
Entering into 0DTE options immediately at market open is crucial since any delays could significantly alter trade outcomes. Roundhill Financial Inc. serves as the investment advisor, while Foreside Fund Services, LLC manages fund distributions. Stakeholders are urged to assess all aspects, associated risks, and market conditions while making strategic investment decisions in collaboration with Roundhill Investments.
