Roundhill WeeklyPay Universe ETF

WPAY

Market cap $454M

I expect S&P 500 and tech-driven indexes to trend higher into 2026, though volatility will persist due to elevated valuations. Index-linked option ETFs with OTM strategies and sustainable yields offer the best balance of income, capital preservation, and upside capture. Single-stock and leveraged high-yield option ETFs risk severe capital erosion and unsustainable payouts, underperforming in both rallies and drawdowns.

WPAY offers weekly payments, with a more balanced risk profile than its competitor YMAX. You will learn the 3 key differences between these ETFs that drove my decision to favor WPAY. WPAY's use of weekly option resets allows for better trend capture and NAV protection compared to YMAX's capped upside issues.

Roundhill WeeklyPay Universe ETF targets high-yield investors, offering an eye-catching annualized yield of approximately 55% with weekly distributions. It differentiates itself from other high-yield ETFs like YMAX and NEOS, providing innovation in both yield structure and payment frequency. However, the innovation here comes with hidden risks, which might not be acceptable for sustainable income investors.

YieldMax Universe Fund of Option Income ETF and Roundhill WeeklyPay Universe ETF both target high income but use distinct strategies. YMAX employs covered call options on a diverse, growth-oriented portfolio, offering robust upside and defensive qualities in flat or correcting markets. WPAY uses 120% weekly leverage on 15 single-stock ETFs, making it more sensitive to market cycles and potentially riskier in downturns than YMAX.

Roundhill WeeklyPay Universe ETF offers unique weekly distributions and a fund-of-funds structure, appealing to income-focused investors. WPAY's diversified ETF holdings and monthly rebalancing help mitigate volatility, but leverage increases the risk of NAV erosion and amplified losses. With only a month of operating history, the fund has outperformed peers and the S&P 500 in total returns while maintaining a lower expense ratio.

The Roundhill WeeklyPay Universe ETF offers high-yield, income-focused exposure to technology and the Magnificent 7 stocks via a fund-of-funds structure. WPAY stands out by not writing covered calls, allowing for uncapped upside compared to traditional covered call ETFs that make up YMAX's portfolio. The fund has an estimated forward yield of ~50%, based off of the last weekly (annualized) distribution.

Roundhill WeeklyPay™ Universe ETF (WPAY) is rated Sell as few people would want equal-weight exposure to all their underlying leveraged single-ticker funds. WPAY's holdings are not option-based but use total return swaps to deliver 1.2x exposure, resulting in variable weekly distributions tied to asset performance. Equal-weighting across diverse assets in WPAY lacks a coherent investment theme, making it less attractive than selecting individual WeeklyPay ETFs with strong conviction.

Roundhill WeeklyPay Universe ETF (WPAY) offers an estimated 50.5% annual yield, paying distributions weekly, and is rated a buy for income-focused investors. WPAY's unique structure holds common shares and writes covered calls, combining leverage and tax-efficient return of capital distributions for enhanced income. Compared to YMAX, WPAY's structure may outperform in bull markets but carries higher downside risk and payout variability due to leverage and short operating history.

WPAY offers equal weight exposure to the entire suite of single stock WeeklyPay™ ETFs . NEW YORK , Sept.