Roundhill Investments Launches Small Cap 0DTE Covered Call Strategy ETF (RDTE)
Roundhill Investments has launched the Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE), expanding its suite of weekly-pay income funds. RDTE, which began trading on Cboe BZX on September 10, 2024, joins existing funds XDTE and QDTE. The ETF employs a strategy of selling zero-days-to-expiry (0DTE) options daily to generate income, aiming to provide weekly distributions to shareholders.
This launch completes Roundhill's offering of 0DTE covered call strategies across all three major U.S. equity indices. CEO Dave Mazza cited significant investor demand for a small cap version, highlighting RDTE as a tool for investors seeking attractive weekly income potential alongside equity exposure in a broadening market where small caps are participating.
Roundhill Investments ha lanciato il Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE), ampliando la sua gamma di fondi a pagamento settimanale. RDTE, che ha iniziato a essere scambiato su Cboe BZX il 10 settembre 2024, si unisce ai fondi esistenti XDTE e QDTE. L'ETF adotta una strategia di vendita di opzioni a zero giorni dalla scadenza (0DTE) quotidianamente per generare reddito, con l'obiettivo di fornire distribuzioni settimanali agli azionisti.
Questo lancio completa l'offerta di Roundhill delle strategie di covered call 0DTE su tutti e tre i principali indici azionari statunitensi. Il CEO Dave Mazza ha citato una significativa domanda da parte degli investitori per una versione small cap, evidenziando RDTE come uno strumento per gli investitori in cerca di un potenziale reddito settimanale attraente insieme all'esposizione azionaria in un mercato in espansione in cui i small cap stanno partecipando.
Roundhill Investments ha lanzado el Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE), expandiendo su gama de fondos de ingresos de pago semanal. RDTE, que comenzó a cotizar en Cboe BZX el 10 de septiembre de 2024, se une a los fondos existentes XDTE y QDTE. El ETF emplea una estrategia de venta de opciones de cero días hasta el vencimiento (0DTE) diariamente para generar ingresos, con el objetivo de proporcionar distribuciones semanales a los accionistas.
Este lanzamiento completa la oferta de Roundhill de estrategias de llamadas cubiertas 0DTE en los tres principales índices de acciones de EE. UU. El CEO Dave Mazza citó una demanda significativa de los inversores por una versión de small cap, destacando a RDTE como una herramienta para los inversores que buscan un atractivo potencial de ingresos semanales junto con la exposición a acciones en un mercado en expansión donde los small caps están participando.
라운드힐 인베스트먼트가 Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE)를 출시하여 주간 수익 기금의 포트폴리오를 확장했습니다. RDTE는 2024년 9월 10일 Cboe BZX에서 거래를 시작하며, 기존 펀드인 XDTE 및 QDTE에 합류합니다. 이 ETF는 매일 만료일까지 0일 남은 옵션(0DTE)을 판매하는 전략을 사용하여 수익을 창출하고, 주주에게 주간 배당금을 제공하는 것을 목표로 하고 있습니다.
이번 출시는 라운드힐의 0DTE 커버드 콜 전략이 미국의 주요 3개 주식 지수 전반에 걸쳐 제공되도록 완성하는 것입니다. CEO인 데이브 마자(Dave Mazza)는 소형주 버전에 대한 투자자의 상당한 수요를 언급하며, RDTE를 넓어지는 시장에서 소형주가 참여하는 동시에 매력적인 주간 수익 잠재력을 추구하는 투자자에게 제안하는 도구로 강조했습니다.
Roundhill Investments a lancé le Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE), élargissant sa gamme de fonds de revenu à paiement hebdomadaire. RDTE, qui a commencé à être négocié sur Cboe BZX le 10 septembre 2024, rejoint les fonds existants XDTE et QDTE. L'ETF utilise une stratégie de vente quotidienne d'options à zéro jour de l'échéance (0DTE) pour générer des revenus, avec pour objectif de fournir des distributions hebdomadaires aux actionnaires.
Ce lancement complète l'offre de Roundhill en matière de stratégies de covered call 0DTE sur les trois principaux indices boursiers américains. Le PDG Dave Mazza a cité une demande significative des investisseurs pour une version à petite capitalisation, mettant en avant RDTE comme un outil pour les investisseurs cherchant un potentiel de revenu hebdomadaire attrayant tout en ayant une exposition aux actions dans un marché en expansion où les petites capitalisations participent.
Roundhill Investments hat den Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE) gestartet und sein Angebot an wöchentlichen Einkommenfonds erweitert. RDTE, das am 10. September 2024 an der Cboe BZX gehandelt wurde, reiht sich in die bestehenden Fonds XDTE und QDTE ein. Der ETF verfolgt eine Strategie, bei der täglich Optionen mit null Tagen bis zum Ablauf (0DTE) verkauft werden, um Einkommen zu generieren und zielt darauf ab, wöchentliche Ausschüttungen an Aktionäre bereitzustellen.
Dieser Launch vervollständigt das Angebot von Roundhill an 0DTE Covered Call Strategien über alle drei großen US-Aktienindizes. CEO Dave Mazza verwies auf eine erheblichen Nachfrage von Investoren nach einer Small-Cap-Version und hob RDTE als ein Werkzeug für Investoren hervor, die eine attraktive wöchentliche Einkommensmöglichkeit neben der Aktienexposition in einem wachsenden Markt suchen, in dem die Small Caps teilnehmen.
- Launch of new ETF (RDTE) expanding product lineup
- Potential for weekly income generation for investors
- Addresses investor demand for small cap 0DTE strategy
- Completes coverage of major U.S. equity indices in Roundhill's 0DTE offerings
- None.
Insights
The launch of RDTE by Roundhill Investments marks a significant expansion in the 0DTE (zero-days-to-expiry) options ETF space, particularly targeting the small-cap segment. This move is strategically timed with the broadening market participation of small-caps, potentially offering investors a new avenue for income generation.
The ETF's structure, focusing on daily sales of 0DTE options with weekly distributions, aims to capitalize on the growing trend of short-term options trading. This approach could appeal to investors seeking regular income streams in a low-yield environment. However, it's important to note that while this strategy may generate attractive yields, it also carries inherent risks associated with options trading and small-cap volatility.
The expansion of Roundhill's 0DTE covered call strategy across all three major U.S. equity indices demonstrates the market demand for such products. This could potentially lead to increased competition in this niche ETF segment, benefiting investors through lower fees and product innovation.
The introduction of RDTE reflects a growing trend in the ETF market towards more specialized and complex strategies. This product caters to a specific investor demographic seeking high-frequency income generation from small-cap exposure, a niche that has been relatively underserved.
The timing of this launch is noteworthy, coinciding with increased interest in small-cap stocks as the market rally broadens. This could potentially attract investors looking to diversify their income sources beyond traditional large-cap dividend stocks or bonds.
However, it's important to consider the risk profile of such a product. Small-cap stocks are inherently more volatile and combining this with daily options trading could lead to significant fluctuations in returns. The success of RDTE will likely depend on market conditions and investor appetite for risk, which could vary greatly in different economic scenarios.
RDTE sells zero-days-to-expiry ("0DTE") options each day to seek income generation. The fund seeks to pay weekly distributions to fund shareholders.
RDTE joins Roundhill's growing suite of weekly-pay income funds, including the Roundhill S&P® 500 0DTE Covered Call Strategy ETF (XDTE) and the Roundhill Innovation-100 0DTE Covered Call Strategy ETF (QDTE). Following the introduction of RDTE, Roundhill now offers its innovative 0DTE covered call strategy across all three major
"Following the successful launches of QDTE and XDTE, we've received significant demand from investors for a small cap version," said Dave Mazza, Chief Executive Officer at Roundhill Investments. "As the market broadens out and small caps continue to participate, RDTE provides a tool for investors looking to generate attractive weekly income potential alongside their equity exposure."
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.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus or summary prospectus, if available, with this and other information about the Fund, please call 1-855-561-5728 or visit our website at https://www.roundhillinvestments.com/etf/RDTE. Read the prospectus or summary prospectus carefully before investing.
All investing involves risk, including the risk of loss of principal. There is no guarantee the investment strategy will be successful. 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. 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 so.
Additionally, the Fund is a "synthetic" covered call strategy, meaning that it derives its long exposure to the Small Cap Index from options that utilize the Small Cap Index as the reference asset. This synthetic exposure increases the likelihood that the Fund's returns may not always precisely align with the returns of the Small Cap Index.
Options Risk. The use of options involves investment strategies and risks different from those associated with ordinary portfolio securities transactions and depends on the ability of the Fund's portfolio managers to forecast market movements correctly. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, or in interest or currency exchange rates, including the anticipated volatility, which in turn are affected by fiscal and monetary policies and by national and international political and economic events. The effective use of options also depends on the Fund's ability to terminate option positions at times deemed desirable to do so. There is no assurance that the Fund will be able to effect closing transactions at any particular time or at an acceptable price. In addition, there may at times be an imperfect correlation between the movement in values of options and their underlying securities and there may at times not be a liquid secondary market for certain options. Lastly, the trading of options is subject to transaction costs that may impact the Fund's returns.
FLEX Options Risk. Trading FLEX Options involves risks different from, or possibly greater than, the risks associated with investing directly in securities. The Fund may experience losses from specific FLEX Option positions and certain FLEX Option positions may expire worthless. The FLEX Options are listed on an exchange; however, no one can guarantee that a liquid secondary trading market will exist for the FLEX Options.
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.
New Fund Risk. The fund is new and has a limited operating history.
Derivatives Risk. The use of derivative instruments (i.e. options contracts) involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments.
Distribution Tax Risk. The Fund currently expects to make distributions on a weekly basis. These distributions may exceed the Fund's income and gains for the Fund's taxable year. Distributions in excess of the Fund's current and accumulated earnings and profits will be treated as a return of capital.
Small Cap Index Risks. The Fund will have significant exposure to the Small Cap Index through its investments in options that utilize the Small Cap Index as the reference asset.
Small Capitalization Companies Risk. Small and/or mid capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than larger, more established companies as a result of several factors, including limited trading volumes, fewer products or financial resources, management inexperience and less publicly available information. Accordingly, such companies are generally subject to greater market risk than larger, more established companies.
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.,
Glossary
Options: An option is a contract sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed upon price within a certain period or on a specific date.
Covered Call Strategy: 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.
Out-of-the-Money Options: Out-of-the-money options are options whose strike price is above the market price of the underlying asset.
0DTE Options: 0DTE (zero days to expiration) are options that are set to expire at the end of the trading day on which they are written.
Strike: Price at which the option holder may buy or sell the underlying security, as defined in the terms of the option contract.
Small Cap Index: The Small Cap Index is a measure of the performance of the small-capitalization sector of the
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SOURCE Roundhill Investments
FAQ
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