Roundhill Investments Launches S&P 500® Target 20 Managed Distribution ETF (XPAY)
Roundhill Investments has launched the S&P 500® Target 20 Managed Distribution ETF (XPAY) on NYSE Arca. The ETF aims to provide monthly return of capital distributions at an annualized rate of 20% while maintaining exposure to the S&P 500. XPAY targets 100% return of capital distributions, which may offer tax advantages compared to capital gains or dividend income, as these distributions are not taxable in the year received. The fund is designed for income-oriented investors seeking tax-efficient monthly distributions without sacrificing exposure to U.S. equity growth potential.
Roundhill Investments ha lanciato l'S&P 500® Target 20 Managed Distribution ETF (XPAY) su NYSE Arca. L'ETF mira a fornire un ritorno mensile di distribuzioni di capitale con un tasso annualizzato del 20%, mantenendo nel contempo l'esposizione all'S&P 500. XPAY è progettato per un ritorno del 100% delle distribuzioni di capitale, che possono offrire vantaggi fiscali rispetto ai guadagni patrimoniali o ai proventi da dividendi, poiché queste distribuzioni non sono tassabili nell'anno in cui vengono ricevute. Il fondo è progettato per investitori orientati al reddito che cercano distribuzioni mensili fiscali efficienti senza rinunciare all'opportunità di crescita del capitale azionario statunitense.
Roundhill Investments ha lanzado el S&P 500® Target 20 Managed Distribution ETF (XPAY) en NYSE Arca. El ETF busca proporcionar retornos mensuales de distribuciones de capital a una tasa anualizada del 20%, manteniendo la exposición al S&P 500. XPAY tiene como objetivo un retorno del 100% de las distribuciones de capital, que pueden ofrecer ventajas fiscales en comparación con las ganancias de capital o los ingresos por dividendos, ya que estas distribuciones no son imponibles en el año en que se reciben. El fondo está diseñado para inversores orientados a los ingresos que buscan distribuciones mensuales eficientes desde el punto de vista fiscal sin sacrificar la exposición al potencial de crecimiento del capital accionario en EE. UU.
라운드힐 인베스트먼트가 NYSE Arca에 S&P 500® 타겟 20 관리 배당 ETF (XPAY)를 출시했습니다. 이 ETF는 S&P 500에 대한 노출을 유지하면서 연율 20%의 자본 배당 월별 수익을 제공하는 것을 목표로 하고 있습니다. XPAY는 자본 배당의 100% 회수를 목표로 하며, 이는 자본 이득이나 배당 소득에 비해 세금 혜택을 제공할 수 있으며, 이러한 분배는 수령한 해에 세금이 부과되지 않습니다. 이 펀드는 미국 주식 성장 잠재력에 대한 노출을 희생하지 않으면서 세금 효율적인 월별 배당을 추구하는 소득 지향 투자자를 위해 설계되었습니다.
Roundhill Investments a lancé l'S&P 500® Target 20 Managed Distribution ETF (XPAY) sur NYSE Arca. L'ETF vise à fournir des distributions de capital mensuelles avec un taux annualisé de 20%, tout en maintenant une exposition au S&P 500. XPAY cible un retour de 100% des distributions de capital, ce qui peut offrir des avantages fiscaux par rapport aux gains en capital ou aux revenus de dividendes, car ces distributions ne sont pas imposables l'année où elles sont reçues. Le fonds est conçu pour les investisseurs orientés vers le revenu cherchant des distributions mensuelles fiscalement efficaces sans sacrifier leur exposition au potentiel de croissance des actions américaines.
Roundhill Investments hat den S&P 500® Target 20 Managed Distribution ETF (XPAY) an der NYSE Arca eingeführt. Der ETF zielt darauf ab, monatliche Rückflüsse aus Kapitalverteilungen mit einer annualisierten Rate von 20% zu bieten, während er die Exposition gegenüber dem S&P 500 aufrechterhält. XPAY strebt eine Rückführung von 100% der Kapitalverteilungen an, die im Vergleich zu Kapitalgewinnen oder Dividendeneinkommen steuerliche Vorteile bieten können, da diese Verteilungen im Jahr des Erhalts nicht steuerpflichtig sind. Der Fonds ist für einkommensorientierte Anleger konzipiert, die steuerlich effiziente monatliche Auszahlungen suchen, ohne auf das Wachstums- potenzial von US-Aktien zu verzichten.
- Monthly return of capital distributions at 20% annualized rate
- Tax-efficient structure with non-taxable distributions in the year received
- Maintains exposure to S&P 500 while providing regular income
- No guarantee that distributions will be return of capital
- High distribution rate of 20% may impact long-term capital preservation
Insights
This innovative ETF launch represents a significant development in income-focused investment products. The 20% annualized distribution rate through return of capital (ROC) structure offers a tax-efficient alternative to traditional income strategies. The key differentiator is the combination of S&P 500 exposure with high monthly distributions, addressing both growth and income needs.
However, investors should carefully consider the implications. ROC distributions reduce the investment cost basis, effectively deferring taxes until the eventual sale of shares. While tax-efficient, the 20% annual distribution rate is notably aggressive and may erode capital faster than traditional income strategies. The fund's ability to sustain such high distributions while maintaining S&P 500 exposure will be important for long-term viability.
The tax structure of XPAY offers significant planning opportunities. Return of capital distributions receive preferential tax treatment compared to dividends or capital gains, as they're not immediately taxable. This creates a powerful tax deferral mechanism for income-focused investors. However, the reduced cost basis from ROC distributions means larger potential capital gains upon eventual sale.
The 100% ROC target is particularly attractive for high-tax-bracket investors seeking current income. The strategy could be especially valuable in tax-loss harvesting scenarios or for estate planning, though investors must carefully monitor their adjusted cost basis to avoid unexpected tax consequences.
XPAY seeks to pay monthly return of capital distributions at an annualized rate of
XPAY is specifically designed to meet the needs of income-oriented investors. By providing exposure to the S&P 500, the fund may serve as an alternative for financial advisors and investors who otherwise may opt to sell equity holdings, and therefore incur capital gains, to meet their monthly financial needs.
XPAY aims to provide shareholders with monthly distribution payments at an annualized rate of
"XPAY is designed and seeks to offer a steady tax-efficient distribution stream without sacrificing their exposure to the growth potential of
For further information on the mechanics of these innovative ETFs, please read our blog to learn more.
There is no guarantee that the Fund will be able to manage its income so that all or a majority of its distributions will be return of capital.
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, risk, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information please call 1-855-561-5728 or visit the website at https:// www.roundhillinvestments.com/etf/XPAY. Read the prospectus or summary prospectus carefully before investing.
Return of capital represents a return of a portion of a Fund shareholder's invested capital and is not taxable in the year it is received unless the distribution exceeds a shareholder's basis in the Fund. However, a return of capital may result in an increase in a later gain on a sale of Fund Shares or a reduction of a loss.
The strategy targets those investors who seek monthly income from their investment but wish to retain exposure to the return of the S&P 500® Index. Because a significant portion of the Fund's distributions will consist of return of capital, the Fund may not be an appropriate investment for investors who do not want their principal investment in the Fund to decrease over time or who do not wish to receive return of capital in a given period.
Distribution Tax Risk. The Fund currently expects to make distributions on a monthly basis. These distributions are expected and designed to 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. The Fund seeks to be managed such that the entirety of the Fund's distributions will be treated as a return of capital. A return of capital distribution generally will not be taxable but currently will reduce the shareholder's cost basis and will result in a higher capital gain or lower capital loss when those Fund Shares on which the distribution was received are sold. Once a Fund shareholder's cost basis is reduced to zero, further distributions will be treated as capital gain if the Fund shareholder holds Fund Shares as capital assets. Additionally, any capital returned through distributions will be distributed after payment of Fund fees and expenses. Because a significant portion of the Fund's distributions will consist of return of capital, the Fund may not be an appropriate investment for investors who do not want their principal investment in the Fund to decrease over time or who do not wish to receive return of capital in a given period.
Market Risk. Market risk is the risk that a particular security, or shares of the Fund ("Fund Shares") in general, may fall in value. Securities are subject to market fluctuations caused by such factors as economic, political, regulatory or market developments, changes in interest rates and perceived trends in securities prices.
Managed Payout Risk. The Fund intends to pay monthly distributions to shareholders based upon based on the NAV of the Fund on the final business day of December each calendar year. Distributions will be paid from Fund assets regardless of the Fund's performance or the level of dividends, income and capital gains earned by the Fund, and will reduce the amount of assets available for investment by the Fund. If distributions paid by the Fund exceed the Fund's earnings and profits, distributions of that excess will be treated as a return of capital to the extent of your tax basis in your Fund Shares.
The targeted annual distribution rate to be paid by the Fund each year is based on the NAV of the Fund on the final business day of December of the prior year. The targeted annual distribution rate is not guaranteed and may be decreased or increased in the future. The actual annual distribution rate paid by the Fund each month or year may be higher or lower than the targeted rate.
SPY ETF Risks. The Fund will have significant exposure to the S&P 500 Index and the SPY ETF through its investments in the SPY FLEX Options. Accordingly, the Fund will subject to the risks of the SPY ETF.
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. In the event that trading in the FLEX Options is limited or absent, the value of the Fund's FLEX Options may decrease.
Active Management Risk. The Fund is actively-managed and its performance reflects investment decisions that the Adviser and/or Sub-Adviser makes for the Fund. Such judgments about the Fund's investments may prove to be incorrect.
Active Market Risk. Although Fund Shares are listed for trading on the Exchange, there can be no assurance that an active trading market for Fund Shares will develop or be maintained.
Concentration Risk. The Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund's investments more than the market as a whole, to the extent that the Fund's investments are concentrated in the securities and/or other assets of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector, market segment or asset class.
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. These risks include: (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset.
New Fund Risk. The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision.
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
S&P 500 Index (S&P 500®): The S&P 500 Index is a measure of large-cap
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SOURCE Roundhill Investments
FAQ
What is the distribution rate for Roundhill's XPAY ETF?
Are XPAY ETF distributions taxable?
When did XPAY start trading on NYSE Arca?
What index does the XPAY ETF track?
