Roundhill Magnificent Seven Covered Call ETF

MAGY

Market cap $209M

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Roundhill Magnificent Seven Covered Call ETF (MAGY) and YieldMax Magnificent 7 Fund of Option Income ETF (YMAG) both target high income from the 'Mag 7' tech stocks. Both funds offer massive weekly yields, but investors should expect potential NAV/share price erosion over time due to aggressive distribution policies. In general, valuations for the underlying tech giants are stretched, so some caution is warranted, but income-focused investors may still find some appeal for the long term.

Roundhill Magnificent Seven Covered Call ETF offers high weekly income by writing covered calls on mega-cap tech stocks via its MAGS ETF holding. MAGY currently yields an eye-catching 35.53%, but the payout has been sustained primarily thanks to the broader market recovery since April. Longer term, with such an elevated distribution rate, we likely would start to see NAV erosion.

Most dividend exchange-traded funds pay out every quarter.

YieldMax Magnificent 7 Fund of Option Income ETFs offers high weekly income via synthetic option writing, with a current yield over 45%. YMAG's synthetic structure leads to higher volatility and NAV decline, while Roundhill's MAGY provides more price stability and consistent payouts through direct equity exposure. YMAG outperformed MAGY in recent total returns, but its strategy limits upside participation and risks greater NAV erosion over time.

Roundhill Magnificent Seven Covered Call ETF (MAGY) offers weekly income by layering a covered call strategy on top of MAGS shares, targeting income-focused investors. MAGY delivers a high yield (12.7% on a TTM basis, as calculated by Seeking Alpha) and stable NAV, but sacrifices upside price appreciation due to its options strategy, with little downside protection. The fund's performance should be judged by its income generation and NAV stability, not by price or total return versus underlying assets or benchmarks.

YieldMax Magnificent 7 Fund remains a Hold, with strong income focus but limited capital appreciation due to its passive covered call strategy. YMAG lags MAGS in total return growth, while YMAX is preferred for long-term, market-agnostic investors due to better tracking of QQQ. Roundhill Magnificent Seven Covered Call ETF underperforms YMAG despite a more direct structure and lower yield, warranting a Hold and watch status.

Roundhill Magnificent Seven Covered Call ETF (MAGY) is rated Hold, offering high income via weekly covered calls on the Magnificent Seven stocks. MAGY boasts a 34.7% distribution rate, but investors sacrifice upside potential and face significant downside risk, especially in volatile markets. MAGY's strategy benefits from elevated implied volatility, yet long-term concerns remain about high fees and the sustainability of covered-call ETF outperformance.

YETH will seek to pay weekly distributions starting in July; YBTC and YETH will now trade ex-dividend each Wednesday and pay on Thursday.  NEW YORK , June 16, 2025 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, announced today that the Roundhill Ether Covered Call Strategy ETF (YETH) will transition from monthly to weekly distributions.

MAGY launch expands the firm's Magnificent Seven ETF lineup, which currently has over $1.7 billion in AUM.1 NEW YORK , April 23, 2025 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, is excited to announce the launch of the Roundhill Magnificent Seven Covered Call ETF (MAGY), which begins trading on Cboe BZX today. MAGY seeks to provide current income on a weekly basis by employing a covered call strategy on the Magnificent Seven, a group of stocks that collectively represent roughly 29% of the S&P 500.