Roundhill Investments Announces XDTE and QDTE Distributions for August 16, 2024

Rhea-AI Summary

Roundhill Investments has announced ETF distributions for XDTE and QDTE, scheduled for August 16, 2024. The Roundhill S&P 500 0DTE Covered Call Strategy ETF (XDTE) will distribute $0.387328 per share (0.77%), while the Roundhill Innovation-100 0DTE Covered Call Strategy ETF (QDTE) will distribute $0.476485 per share (1.15%). Both distributions have an ex-date of August 15, 2024, and are made on a weekly basis.

The 30-Day SEC Yields as of July 31, 2024, for XDTE and QDTE are -0.52% and -0.46%, respectively. Both funds have a Gross Expense Ratio of 0.95%. Investors should note that distributions may exceed the Funds' income and gains, potentially resulting in a return of capital.

Positive

• Weekly distribution schedule for both XDTE and QDTE ETFs
• QDTE offers a higher distribution rate (1.15%) compared to XDTE (0.77%)

Negative

• Negative 30-Day SEC Yields for both XDTE (-0.52%) and QDTE (-0.46%)
• Distributions may exceed Funds' income and gains, potentially resulting in return of capital
• High Gross Expense Ratio of 0.95% for both funds

Financial Analyst

The announcement of weekly distributions for XDTE and QDTE ETFs is a routine update that doesn't significantly impact the overall market or investor sentiment. The distribution yields of 0.77% for XDTE and 1.15% for QDTE are within expected ranges for covered call strategy ETFs. However, it's important to note the negative 30-Day SEC Yields (-0.52% and -0.46% respectively) and the 0.95% expense ratio, which may erode returns over time.

The funds' strategy of making weekly distributions primarily from return of capital rather than income or gains is noteworthy. This approach can provide consistent cash flow but may not be sustainable long-term and could potentially deplete the funds' assets. Investors should be cautious and understand that these distributions might not reflect true fund performance or income generation.

NEW YORK, Aug. 14, 2024 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, has announced the following ETF distributions for XDTE and QDTE.

Fund Name	Ticker	Distribution Per Share (%)*	Distribution Per Share ($)	Ex-Date	Pay Date	Distribution Frequency
Roundhill S&P 500 0DTE Covered Call Strategy ETF	XDTE	0.77 %	$0.387328	8/15/24	8/16/24	Weekly
Roundhill Innovation- 100 0DTE Covered Call Strategy ETF	QDTE	1.15 %	$0.476485	8/15/24	8/16/24	Weekly

 

The 30-Day SEC Yield** (as of 7/31/24) for the Roundhill S&P 500® 0DTE Covered Call Strategy ETF and the Roundhill Innovation-100 0DTE Covered Call Strategy ETF are -0.52% and -0.46%, respectively.***

The Gross Expense Ratio for XDTE and QDTE is 0.95%.

The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. The investment 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. Returns less than one year are not annualized. For the most recent standardized and month-end performance, please click here: XDTE, QDTE.

The Funds currently expect, but do not guarantee, to make distributions on a weekly basis. Distributions may exceed the Funds' income and gains for the Funds' taxable year. Distributions in excess of the Funds' current and accumulated earnings and profits will be treated as a return of capital. Distributions may decrease a fund's NAV and trading price over time. As a result, an investor may suffer significant losses to their investment. Distribution rates caused by unusually favorable market conditions may not be sustainable. Such conditions might not continue to exist and there should be no expectation that this performance will be repeated in the future. As of the most recent distributions by the funds, the distribution composition was estimated to be 100% return of capital. Please see the 19a-1 notices for more information.

*The Distribution Per Share (%) is calculated by dividing the most recent distribution by the fund NAV as of market close on 8/2/24.

**30-Day SEC Yield: Yield calculation that reflects the dividends and interest earned during the period after the deduction of the fund's expenses. It is also referred to as the "standardized yield".

About Roundhill Investments:

Founded in 2018, Roundhill Investments is an SEC-registered investment advisor focused on innovative exchange-traded funds. Roundhill's suite of ETFs offers unique and differentiated exposures across thematic equity, options income, and trading vehicles. Roundhill offers a depth of ETF knowledge and experience, as the team has collectively launched more than 100+ ETFs including several first-to-market products. To learn more about the company, please visit roundhillinvestments.com.

This material must be preceded or accompanied by a prospectus.

Click here for the XDTE prospectus.
Click here for the QDTE prospectus.

All investing involves risk, including the risk of loss of principal. There is no guarantee the investment strategy will be successful. The funds faces numerous risks, including options risk, liquidity risk, market risk, cost of futures investment risk, clearing broker risk, commodity regulatory risk, futures contract risk, active management risk, active market risk, clearing broker risk, credit risk, derivatives risk, legislation and litigation risk, operational risk, trading issues risk, valuation risk and non-diversification risk. For a detailed list of fund risks see the prospectus.

Covered Call Strategy Risk. A covered call strategy involves writing (selling) covered call options in return for the receipt of premiums. The seller of the option gives up the opportunity to benefit from price increases in the underlying instrument above the exercise price of the options, but continues to bear the risk of underlying instrument price declines. The premiums received from the options may not be sufficient to offset any losses sustained from underlying instrument price declines, over time. As a result, the risks associated with writing covered call options may be similar to the risks associated with writing put options. Exchanges may suspend the trading of options during periods of abnormal market volatility. Suspension of trading may mean that an option seller is unable to sell options at a time that may be desirable or advantageous to do.

Flex Options Risk. The Fund will utilize FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation (OCC). In the unlikely event that the OCC becomes insolvent or is otherwise unable to meet its settlement obligations, the Fund could suffer significant losses. Additionally, FLEX Options may be less liquid than standard options. In a less liquid market for the FLEX Options, the Fund may have difficulty closing out certain FLEX Options positions at desired times and prices. The values of FLEX Options do not increase or decrease at the same rate as the reference asset and may vary due to factors other than the price of reference asset.

0DTE Options Risk.*** The Fund's use of zero days to expiration, known as "0DTE" options, presents additional risks. Due to the short time until their expiration, 0DTE options are more sensitive to sudden price movements and market volatility than options with more time until expiration. Because of this, the timing of trades utilizing 0DTE options becomes more critical. Although the Fund intends to enter into 0DTE options trades on market open, or shortly thereafter, even a slight delay in the execution of these trades can significantly impact the outcome of the trade. Such options may also suffer from low liquidity, making it more difficult for the Fund to enter into its positions each morning at desired prices. The bid-ask spreads on 0DTE options can be wider than with traditional options, increasing the Fund's transaction costs and negatively affecting its returns. Additionally, the proliferation of 0DTE options is relatively new and may therefore be subject to rule changes and operational frictions. To the extent that the OCC enacts new rules relating to 0DTE options that make it impractical or impossible for the Fund to utilize 0DTE options to effectuate its investment strategy, it may instead utilize options with the shortest remaining maturity available or it may utilize swap agreements to provide the desired exposure.

Roundhill Financial Inc. serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of their affiliates.

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SOURCE Roundhill Investments

FAQ

What are the distribution amounts for XDTE and QDTE on August 16, 2024?

XDTE will distribute $0.387328 per share (0.77%), while QDTE will distribute $0.476485 per share (1.15%) on August 16, 2024.

What is the distribution frequency for Roundhill's XDTE and QDTE ETFs?

Both XDTE and QDTE ETFs have a weekly distribution frequency.

What are the 30-Day SEC Yields for XDTE and QDTE as of July 31, 2024?

The 30-Day SEC Yields as of July 31, 2024, are -0.52% for XDTE and -0.46% for QDTE.

What is the Gross Expense Ratio for Roundhill's XDTE and QDTE ETFs?

The Gross Expense Ratio for both XDTE and QDTE is 0.95%.