new york, July 10, 2024 LONDON, Oct 23, 2020 /PRNewswire/ — Roundhill Investments, an ETF sponsor focused on innovative financial products, has announced the following weekly ETF distributions for the Roundhill S&P 500 0DTE Covered Call Strategy ETF (XDTE) and the Roundhill N-100 0DTE Covered Call Strategy ETF (QDTE):
|
Fund Name |
Ticker |
distribution Per share (%)* |
distribution Per share (dollars) |
ship date |
Date of payment |
Distribution frequency |
|
Round Hill S&P 500 0DTE Covered Call Strategy ETF |
translation |
0.45% |
$0.237370 |
7/11/24 |
7/12/24 |
Every week |
|
Round Hill N-100 0DTE Covered Call Strategy ETF |
question |
0.75% |
$0.346492 |
7/11/24 |
7/12/24 |
Every week |
The 30-day SEC yields** for the Roundhill S&P 500® 0DTE Covered Call Strategy ETF and the Roundhill N-100 0DTE Covered Call Strategy ETF are -0.54% and -0.46%, respectively, as of June 30, 2024.***
The total expense ratio for XDTE and QDTE is 0.95%.
Performance data quoted represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost when sold or redeemed. Returns less than one year are not annualized. Click here for the most recent standardized month-end performance. translation, question.
The Fund currently expects, but does not guarantee, to make weekly distributions. Distributions may exceed the Fund’s income and gains for the taxable year. Distributions in excess of the Fund’s current and accumulated income and gains will be treated as a return of capital.
As of the Fund’s most recent distribution, the distribution composition is estimated to be a 100% return of capital. Please see Notice 19a-1 for more information.
*Dividend per share (%) is calculated by dividing the most recent dividend by the fund’s net asset value at the close of the market. July 5, 2024.
**30-Day SEC Yield: A yield calculation that reflects the dividends and interest earned during a period less a fund’s expenses. Also known as the “normalized yield.”
About Round Hill Investments:
Founded in 2018, Roundhill Investments is an SEC registered investment adviser focused on innovative exchange-traded funds. Roundhill’s ETF suite provides unique and differentiated exposure across thematic equities, option income and trading vehicles. Roundhill offers deep ETF knowledge and experience as the team has collectively launched over 100 ETFs, including several first-to-market products. To learn more about the firm, visit roundhillinvestments.com.
This document must be preceded by or accompanied by a prospectus.
Click here for XDTE’s prospectus.
Click here for the QDTE prospectus.
All investments involve risks, including the risk of loss of principal. There is no guarantee that any investment strategy will be successful. The Fund faces a number of risks, including but not limited to options risk, liquidity risk, market risk, futures investment cost risk, clearing broker risk, product regulatory risk, futures contract risk, active management risk, active market risk, clearing broker risk, credit risk, derivatives risk, legislative and litigation risk, operational risk, trading issues risk, valuation risk and non-diversification risk. Please see the Prospectus for a detailed list of Fund risks.
Risks of Covered Call Strategies. In a covered call strategy, in exchange for receiving a premium, a covered call option is sold. The option seller gives up the opportunity to profit if the price of the underlying asset rises above the option’s strike price, but still bears the risk that the price of the underlying asset will fall. The premium received from the option may not be sufficient to offset losses incurred as the price of the underlying asset declines over time. As a result, the risks associated with selling a covered call option may be similar to the risks associated with selling a put option. Exchanges may suspend trading in options during periods of unusual market volatility. When trading is halted, option sellers may not be able to sell options at desirable or advantageous times.
Flex Option Risk. The Fund utilizes FLEX options that are issued and guaranteed for settlement by the Options Clearing Corporation (OCC). In the unlikely event that the OCC becomes insolvent or is unable to meet its settlement obligations, the Fund could suffer significant losses. FLEX options may also be less liquid than standard options. In a illiquid market for FLEX options, the Fund may have difficulty closing out certain FLEX option positions at the desired time and price. The value of FLEX options may not increase or decrease at the same rate as the reference asset and may fluctuate due to factors other than the price of the reference asset.
0DTE Option Risk.*** The Fund’s use of zero-day to maturity options (“0DTE” options) creates additional risks. Due to the short time to maturity, 0DTE options are more susceptible to sudden price movements and market volatility than options with longer times to maturity. For this reason, the timing of transactions utilizing 0DTE options is more important. Although the Fund intends to enter into 0DTE option transactions at or shortly after the market open, any delay in the execution of these transactions could materially affect the outcome of the transactions. In addition, such options may be less liquid, making it more difficult for the Fund to take a position at the desired price each morning. Bid-ask spreads for 0DTE options may be wider than for traditional options, increasing the Fund’s transaction costs and negatively impacting returns. In addition, the popularity of 0DTE options is relatively new and may be subject to rule changes and operational frictions. If the OCC enacts new rules regarding 0DTE options that make it impractical or impossible for a Fund to implement its investment strategy using 0DTE options, the Fund may instead utilize options with the shortest remaining maturities available or may utilize swap agreements to provide the required exposure.
Roundhill Financial Inc. is acting as investment adviser. The Fund is distributed by Foreside Fund Services, LLC, which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of their affiliates.
SOURCE Round Hill Investments
