Roundhill Investments, a New York-based ETF sponsor known for innovative financial products, has announced ETF distributions for three of its funds: XDTE, QDTE, and RDTE, set for November 8, 2024. The 30-Day SEC Yield, as of October 31, 2024, for these funds is reported at -0.51% for both the Roundhill S&P 500 0DTE Covered Call Strategy ETF and the Roundhill Innovation-100 0DTE Covered Call Strategy ETF, and -0.49% for the Roundhill Small Cap 0DTE Covered Call Strategy ETF. Each of these ETFs carries a gross expense ratio of 0.95%.
Past performance of these ETFs does not guarantee future results, and the current performance might vary from the quoted data. Since investment returns and principal values fluctuate, an investor's shares may be valued higher or lower than their original purchase price upon redemption. Always refer to the most recent performance data to make informed decisions. Moreover, the funds plan to make weekly distributions, though such distributions might exceed each fund's income and gains for the taxable year. Any distribution beyond current earnings is treated as a return of capital, and while favorable market conditions might boost distribution rates, these conditions are not expected to persist indefinitely.
Check the Supplemental Tax Information for details on distribution composition. Roundhill Investments, established in 2018, is registered with the SEC and focuses on unique exchange-traded funds (ETFs). The company has launched over 100 ETFs with distinctive exposures across thematic equity and options income. For more about their offerings, visit roundhillinvestments.com. Potential investors should read the prospectus carefully before investing, as all investments, including those in ETFs, contain risks such as options, liquidity, market, and non-diversification risks, among others.
Each fund employs a covered call strategy by writing options in exchange for premiums, which might not sufficiently hedge against underlying asset depreciation. FLEX Options, used by the fund, may face reduced liquidity and depend on the Options Clearing Corporation for settlement guarantees. The 0DTE options strategy poses additional risks due to its sensitivity to price fluctuations and market volatility; quick execution is crucial. Low liquidity and wide bid-ask spreads could further affect returns and increase transaction costs.
Changes in regulations affecting 0DTE options might require strategic adjustments. Foreside Fund Services, not affiliated with Roundhill Financial Inc. or U.S. Bank, distributes these funds. For more detailed risk information, refer to the prospectus.
