Roundhill Suite of 0DTE Covered Call ETFs Surpass $1 Billion in AUM

XDTE, QDTE and RDTE are the first-ever ETFs to sell zero-days-to-expiry (0DTE) options to generate income and provide weekly distributions to shareholders.

NEW YORK, Dec. 9, 2024 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, is pleased to announce that its suite of 0DTE covered call ETFs, including the Roundhill S&P 500® 0DTE Covered Call Strategy ETF (XDTE), the Roundhill Innovation-100 0DTE Covered Call Strategy ETF (QDTE), and the Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE), have surpassed $1 billion in combined assets under management (AUM).¹

In addition to providing weekly distributions, the suite has delivered strong total returns for shareholders. As of the most recent quarter end, all three ETFs had outperformed the underlying indices that they trade options on. This outperformance has been attributable to several factors, including the "night effect" captured via uncapped overnight market exposure, a unique feature of the suite when compared against other covered call strategies in the marketplace.

	Since Inception (3/7/2024)
XDTE Market Price	15.57 %
XDTE NAV	15.71 %
S&P 500 Index	13.76 %
	Since Inception (3/7/2024)
QDTE Market Price	13.59 %
QDTE NAV	13.58 %
Nasdaq-100 Index	11.85 %
	Since Inception (9/10/2024)
RDTE Market Price	7.44 %
RDTE NAV	7.28 %
Russell 2000 Index	6.30 %

Source: Index performance via Bloomberg, Fund performance via Roundhill Investments as of September 30, 2024.

The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. The investment return and 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 month-end performance, please click here: XDTE, QDTE, RDTE. The Gross Expense Ratio for XDTE, QDTE and RDTE is 0.95%.

Shares are bought and sold at market price (closing price), not net asset value (NAV), and are individually redeemed from the Fund. Market performance is determined using the Primary Exchange official closing price. Brokerage commissions will reduce returns.

¹Source: Bloomberg as of December 4, 2024.

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.

Glossary

S&P 500 Index: The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and covers approximately 80% of available market capitalization.

Innovation-100 Index: The Innovation-100 Index is a globally recognized index that tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq Stock Market®, encompassing a diverse range of industries and sectors. The components of the Innovation-100 Index are weighted pursuant to their market capitalization. The index is rebalanced quarterly and reconstituted annually.

Small Cap Index: The Small Cap Index is a measure of the performance of the small-capitalization sector of the U.S. equity market, as defined by FTSE Russell. The Small Cap Index is a subset of the Russell 3000® Index (the "Broad Market Index"), which measures the performance of the broad U.S. equity market, as defined by FTSE Russell. The Small Cap Index is a float-adjusted capitalization-weighted index of equity securities issued by the smallest issuers in the Broad Market Index.

Nasdaq-100 Index: The NASDAQ-100 Index is a modified capitalization-weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ. No security can have more than a 24% weighting. The index was developed with a base value of 125 as of February 1, 1985. Prior to December 21,1998 the Nasdaq 100 was a cap-weighted index.

Russell 2000 Index: The Russell 2000 Index is comprised of the smallest 2000 companies in the Russell 3000 Index, representing approximately 8% of the Russell 3000 total market capitalization. The real-time value is calculated with a base value of 135.00 as of December 31, 1986. The end-of-day value is calculated with a base value of 100.00 as of December 29, 1978.

 

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