Roundhill S&P 500 Target 20 Managed Distribution ETF

XPAY

Market cap $52.3M

Today we'll compare the Defiance S&P 500 Income Target ETF (SPYT) and Roundhill S&P 500 Target 20 Managed Distribution ETF (XPAY), which both target a 20% annualized yield. SPYT uses a covered call spread strategy, capping upside and leading to NAV erosion, resulting in a Hold rating. XPAY buys deep in-the-money options, closely tracking S&P 500 returns and offering stable distributions, earning a Buy rating.

XPAY is a newer ETF offered by Roundhill, offering S&P 500 exposure through options and targeting a 20% annualized distribution rate, paid monthly. The fund's distributions are primarily return of capital, of which some portion will likely be destructive and erode NAV over time. With ROC distributions, though, that can be quite appealing for some investors as it can defer tax obligations.

NEW YORK , Nov. 5, 2024 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, has announced the following ETF distributions for the Roundhill S&P 500® Target 20 Managed Distribution ETF (XPAY). Based on the Fund's initial NAV and its 20% annualized distribution target, the Adviser has calculated a monthly distribution rate of $0.972333 for 2024.

On Thursday, Roundhill Investments launched its latest fund, the Roundhill S&P 500 Target 20 Managed Distribution ETF (XPAY).  The actively managed fund has a net expense ratio of 49 basis points.

XPAY seeks to pay monthly return of capital distributions at an annualized rate of 20%. NEW YORK , Oct. 31, 2024 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, is pleased to announce the launch of the Roundhill S&P 500® Target 20 Managed Distribution ETF (XPAY), which begins trading on NYSE Arca today.