Roundhill Investments Announces XDTE, QDTE and RDTE Distributions for November 15, 2024

Rhea-AI Summary

Roundhill Investments has announced ETF distributions for three funds: XDTE, QDTE, and RDTE. The distributions per share are $0.274052 (0.53%), $0.252937 (0.61%), and $0.334341 (0.78%) respectively, with a pay date of November 15, 2024. All three funds show negative 30-Day SEC yields as of October 31, 2024: -0.51% for XDTE and QDTE, and -0.49% for RDTE. Each fund carries a Gross Expense Ratio of 0.95%. The funds aim to make weekly distributions, though this is not guaranteed, and distributions may exceed the funds' income and gains.

Positive

• Weekly distribution schedule provides regular income to investors
• RDTE offers the highest distribution rate at 0.78%

Negative

• All funds show negative 30-Day SEC yields (-0.51% for XDTE/QDTE, -0.49% for RDTE)
• High expense ratio of 0.95% for all funds
• Distributions may exceed funds' earnings, potentially resulting in return of capital

Insights

Financial Analyst

The announcement of ETF distributions provides key insights into these 0DTE (zero days to expiration) covered call strategy funds. The distributions show relatively modest yields, with RDTE leading at 0.78%, followed by QDTE at 0.61% and XDTE at 0.53%. However, all three funds currently display negative 30-day SEC yields around -0.5%, suggesting potential challenges in maintaining distribution levels.

The 0.95% expense ratio across all funds is notably high compared to traditional index ETFs, reflecting the complexity of managing daily options strategies. Investors should carefully consider how these costs impact total returns, especially given the negative SEC yields. The weekly distribution schedule, while attractive for income-focused investors, carries sustainability risks in less favorable market conditions.

NEW YORK, Nov. 13, 2024 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, has announced the following ETF distributions for XDTE, QDTE, and RDTE.

Fund Name	Ticker	Distribution Per Share (%)*	Distribution Per Share	30-Day SEC Yield**	Ex-Date	Pay Date
Roundhill S&P 500 0DTE Covered Call Strategy ETF	XDTE	0.53 %	$0.274052	-0.51 %	11/14/24	11/15/24
Roundhill Innovation-100 0DTE Covered Call Strategy ETF	QDTE	0.61 %	$0.252937	-0.51 %	11/14/24	11/15/24
Roundhill Small Cap 0DTE Covered Call Strategy ETF	RDTE	0.78 %	$0.334341	-0.49 %	11/14/24	11/15/24

 

The 30-Day SEC Yield** (as of 10/31/24) for the Roundhill S&P 500® 0DTE Covered Call Strategy ETF, the Roundhill Innovation-100 0DTE Covered Call Strategy ETF and the Roundhill Small Cap 0DTE Covered Call Strategy ETF are -0.51%, -0.51%, and -0.49%, respectively.***

The Gross Expense Ratio for XDTE, QDTE and RDTE 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, RDTE.

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. 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. Please see the Supplemental Tax Information section of the webpage for more information on the distribution composition including the estimated return of capital.

*The Distribution Per Share (%) is calculated by dividing the most recent distribution by the fund NAV as of market close on 11/1/24.

**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 distinct 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 QDTE prospectus. 
Click here for the XDTE prospectus. 
Click here for the RDTE 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 is the distribution amount for QDTE in November 2024?

QDTE's distribution amount for November 15, 2024, is $0.252937 per share, representing a 0.61% distribution rate.

What is the 30-Day SEC yield for QDTE as of October 31, 2024?

The 30-Day SEC yield for QDTE as of October 31, 2024, is -0.51%.

What is the expense ratio for Roundhill's QDTE ETF?

The Gross Expense Ratio for QDTE is 0.95%.

When is the pay date for QDTE's November 2024 distribution?

The pay date for QDTE's distribution is November 15, 2024, with an ex-date of November 14, 2024.