NEW YORK , Oct. 2, 2024 /PRNewswire/ — Roundhill Investments, an ETF sponsor focused on innovative financial products, announces the following ETF distributions for XDTE, QDTE, and RDTE.
Fund name
ticker
distribution
Per share (%)*
distribution
per share
30 day SEC
yield**
New Year’s Day
payment date
Round Hill S&P 500
0DTE covered call
Strategy ETF
XDTE
0.44%
$0.228813
-0.46%
10/3/24
10/4/24
round hill
Innovation-100
0DTE covered call
Strategy ETF
QDTE
0.52%
$0.217625
-0.40%
10/3/24
10/4/24
round hill small
Cap covers 0DTE
call strategy ETF
R.D.T.E.
0.86%
$0.386265
Not applicable
10/3/24
10/4/24
The Roundhill S&P 500® 0DTE Covered Call Strategy ETF and Roundhill Innovation-100 0DTE Covered Call Strategy ETF have 30-day SEC yields** (as of August 31, 2024) of -0.46% and -0.40%, respectively. ***
Roundhill Small Cap 0DTE Covered Call Strategy ETF’s 30-day SEC Yield** is not yet available.
The total expense ratio for XDTE, QDTE, and RDTE is 0.95%.
Performance data quoted represents historical performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. The return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Revenues less than one year are not annualized. Click here for the latest standardized month-end performance: XDTE, QDTE, RDTE.
Although the Fund currently intends to make weekly distributions, this is not guaranteed. Distributions may exceed the Fund’s income and profits for the Fund’s taxable year. Distributions in excess of the Fund’s current and cumulative income and profits will be treated as a return of capital. Distribution rates caused by unusually favorable market conditions may not be sustainable. This situation may not exist in the future, and we cannot expect a repeat of this performance in the future. For more information on the distribution structure, including estimated return on capital, please see the Supplemental Tax Information section of the web page.
*Dividend per share (%) is calculated by dividing the most recent distribution by the fund’s NAV as of market close on September 20, 2024.
**30-Day SEC Yield: A yield calculation that reflects the dividends and interest earned during the period after deducting the fund’s expenses. Also called “standardized yield.”
About Roundhill Investments:
Founded in 2018, Roundhill Investments is an SEC-registered investment advisor focused on innovative exchange-traded funds. Round Hill’s suite of ETFs provides clear and differentiated exposure across equity, option income and trading vehicle themes. Roundhill brings a wealth of ETF knowledge and experience, with the team having co-launched more than 100 ETFs, including several first-to-market products. For more information about the company, please visit roundhillinvestments.com.
This material must be preceded or accompanied by a prospectus.
Click here for the QDTE prospectus.
Click here for the XDTE prospectus.
Click here for the RDTE prospectus.
All investments involve risks, including the risk of loss of principal. There is no guarantee that any investment strategy will be successful. The Fund is subject to options risk, liquidity risk, market risk, futures investment cost risk, clearing broker risk, product regulatory risk, futures contract risk, active management risk, active market risk, clearing broker risk, credit risk, and derivatives. We face numerous risks. Risk, legal and litigation risk, operational risk, trading issue risk, valuation risk, non-diversification risk. Please see the prospectus for a detailed list of the Fund’s risks.
Covered call strategy risks. A covered call strategy involves writing (selling) covered call options in exchange for receiving a premium. The seller of an option gives up the opportunity to profit from an increase in the price of the underlying instrument above the option’s strike price, but continues to bear the risk of a decline in the price of the underlying instrument. The premium received from an option may not be sufficient to offset losses incurred due to declines in the price of the underlying instrument over time. As a result, the risk associated with writing a covered call option can be similar to the risk associated with writing a put option. Exchanges may suspend trading in options during periods of unusual market volatility. A trading halt may mean that the option seller is unable to sell the option at a desirable or advantageous time.
Flex Option Risks. The Fund utilizes FLEX options issued by an Options Clearing Company (OCC) with guaranteed settlement. In the unlikely event that OCC becomes insolvent or unable to meet its settlement obligations, the Fund could suffer significant losses. Additionally, FLEX options may be less liquid than standard options. In an illiquid market for FLEX options, a Fund may have difficulty closing a particular FLEX option position at a desired time and price. The value of a FLEX option does not increase or decrease at the same rate as the reference asset and may fluctuate due to factors other than the price of the reference asset.
0DTE Option Risks*** Zero days to expiration, known as a Fund’s “0DTE” option, poses additional risks. Because 0DTE options have short expiration times, they are more sensitive to sudden price changes and market fluctuations than options with longer expiration times. This makes the timing of trades using the 0DTE option even more important. Although the Fund intends to enter into 0DTE option trades during or shortly after the market is open, even small delays in the execution of these trades could significantly affect the outcome of the trades. Such options may also be less liquid, making it more difficult for the Fund to enter positions at the desired price each morning. The bid and ask price spreads for 0DTE options may be wider than for traditional options, which may increase the Fund’s trading costs and adversely affect its returns. Additionally, the proliferation of 0DTE options is relatively new, which could lead to rule changes and operational frictions. If the OCC enacts new rules regarding the 0DTE option that would make it impractical or impossible for a Fund to utilize the 0DTE option to implement its investment strategy, then They may take short options or use swap contracts. Provide the desired exposure.
Round Hill Financial Co., Ltd. is acting as investment advisor. The Funds are distributed by Foreside Fund Services, LLC, which is not affiliated with Roundhill Financial Inc., US Bank, or any of their affiliates.
Source Roundhill Investments
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