XDTE and QDTE are the first ever ETFs to sell
zero-days-to-expiry (0DTE) options to generate income, and the only
U.S. ETFs that pay weekly distributions to shareholders.
NEW
YORK, July 23, 2024 /PRNewswire/ -- Roundhill
Investments, an ETF sponsor focused on innovative financial
products, is pleased to announce that its suite of weekly pay
options 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),
have surpassed $100 million in
combined assets under management (AUM).1
"Early interest in our options income ETFs highlights their
appeal to investors seeking the potential for high income with
weekly distributions," said Dave
Mazza, Chief Executive Officer at Roundhill Investments.
"Our 0DTE Covered Call Strategy ETFs provide innovative solutions
that are designed to meet the specific needs of today's market
participants."
In addition to XDTE and QDTE, Roundhill has recently filed for
RDTE, the Roundhill Small Cap 0DTE Covered Call Strategy ETF.
Roundhill plans to list RDTE for trading in the third quarter of
2024.2
The Funds currently expect, but does not guarantee, 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.
1 Source: Bloomberg as of July
9, 2024.
2 INFORMATION CONTAINED HEREIN IS SUBJECT TO
COMPLETION OR AMENDMENT. A REGISTRATION STATEMENT RELATING TO THESE
SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION BUT HAS NOT YET BECOME EFFECTIVE. THESE SECURITIES MAY
NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE
REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS COMMUNICATION SHALL
NOT CONSTITUTE AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO
BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY STATE IN
WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO
REGISTRATION OR QUALIFICATION UNDER SECURITIES LAWS OF ANY SUCH
STATE.
AN INDICATION OF INTEREST IN RESPONSE TO THIS ADVERTISEMENT
WILL INVOLVE NO OBLIGATION OR COMMITMENT OF ANY KIND.
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.
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.
QDTE & XDTE
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.
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