NEW YORK, September 4, 2024 /PRNewswire/ — Roundhill Investments, an ETF sponsor focused on innovative financial products, today announced the following ETF distributions for XDTE and QDTE.
|
Name of the fund |
Heart |
Distribution Per share (%)* |
Distribution Per share |
SEC 30 days |
Date of ex |
Payment date |
|
Roundhill S&P 500 Index |
XDTE |
0.60 % |
$0.311931 |
-0.52 % |
5/9/24 |
6/9/24 |
|
Roundhill Innovation- |
QDTE |
0.77 % |
$0.329389 |
-0.46 % |
5/9/24 |
6/9/24 |
The 30-day SEC performance** (as of 7/31/24) for the Roundhill S&P 500® 0DTE Covered Call Strategy ETF and the Roundhill Innovation-100 0DTE Covered Call Strategy ETF are -0.52% and -0.46%, respectively.***
The gross expense ratio for XDTE and QDTE is 0.95%.
The performance data cited represents past performance. Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data cited. Investment performance and the 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 end-of-month performance, click here: XDTE, QDTE.
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' fiscal year. Distributions in excess of the Funds' current and accumulated earnings and gains will be considered a return of capital. Distribution rates caused by unusually favorable market conditions may not be sustainable. Such conditions may not continue to exist and there should be no expectation that this situation will recur in the future. Based on the funds' most recent distributions, the distribution composition was estimated to be 100% return of capital. Please see 19a-1 notices for more information.
*Distribution per share (%) is calculated by dividing the most recent distribution by the fund's net asset value at market close on 8/23/24.
**30-Day SEC Yield: A yield calculation that reflects dividends and interest earned during the period after fund expenses have been deducted. Also referred to as the “standardized yield.”
About Roundhill Investments:
Founded in 2018, Roundhill Investments is an SEC-registered investment advisory firm focusing on innovative exchange-traded funds. Roundhill’s ETF portfolio offers differentiated and distinctive exposures across thematic equities, options equities and trading vehicles. Roundhill offers deep ETF knowledge and expertise, with the team having collectively launched over 100 ETFs, including several first-to-market products. For more information about the firm, please visit roundhillinvestments.com.
This material must be preceded or accompanied by a prospectus.
Click here to view the XDTE prospectus.
Click here to view the QDTE prospectus.
All investing involves risk, including the risk of loss of principal. There is no guarantee that any investment strategy will be successful. The funds face numerous risks, including options risk, liquidity risk, market risk, futures investment cost risk, clearing agent risk, commodity regulatory risk, futures contract risk, active management risk, active market risk, clearing agent risk, credit risk, derivatives risk, regulatory and litigation risk, operational risk, business distress risk, valuation risk and lack of diversification risk. For a detailed list of the fund's risks, please refer to the prospectus.
Risk of the covered call strategy. A covered call strategy involves writing (selling) covered call options in exchange for receiving premiums. The option seller gives up the opportunity to profit from price increases of the underlying instrument above the options' strike price, but still bears the risk that the price of the underlying instrument will decline. The premiums received from the options may not be sufficient to offset losses incurred from price declines of the underlying instrument 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 trading in options during periods of abnormal market volatility. The suspension of trading may mean that an option seller is unable to sell options at a time when it may be convenient or advantageous to do so.
Flexible options risk. The Fund will use FLEX Options written 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. In addition, FLEX Options may be less liquid than standard options. In a less liquid market for FLEX Options, the Fund may have difficulty closing out certain FLEX Options positions at the desired times and prices. FLEX Options values do not increase or decrease at the same rate as the reference asset and may vary due to factors other than the price of the reference asset.
0DTE Options Risk.*** The Fund's use of zero-day expiration options, known as “0DTE,” presents additional risks. Because of the short time to expiration, 0DTE options are more sensitive to sudden price movements and market volatility than options with longer time to expiration. Because of this, the timing of transactions using 0DTE options becomes more critical. Although the Fund intends to enter into transactions in 0DTE options at the market open, or shortly thereafter, even a slight delay in the execution of these transactions can significantly impact the outcome of the transaction. Such options may also suffer from low liquidity, making it more difficult for the Fund to enter into its positions each morning at the desired prices. Bid-ask spreads on 0DTE options may be wider than on traditional options, which increases the Fund's transaction costs and negatively impacts its returns. In addition, the proliferation of 0DTE options is relatively new and therefore may be subject to rule changes and operational frictions. To the extent the OCC promulgates new rules relating to 0DTE options that make it impractical or impossible for the Fund to use 0DTE options to carry out its investment strategy, it may instead use options with the shortest remaining maturity available or may use swap agreements to provide the desired exposure.
Roundhill Financial Inc. acts as investment advisor. Funds are distributed by Foreside Fund Services, LLC, which is not affiliated with Roundhill Financial Inc., US Bank or any of their affiliates.
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