XDTE ETF

I am accumulating the Roundhill S&P 500 0DTE Covered Call Strategy ETF due to its high-yield and total return peer outperformance. XDTE outperforms SPY with a 16% yield, showing lower drawdowns and consistent performance. A 10-year projection model suggests reinvesting at least 33% of income to sustain capital and income growth in line with inflation, ideally 40% or more for aggressive income and capital growth.

XDTE offers a unique income strategy on the S&P 500, providing a 15.73% distribution rate by selling 0DTE options. The ETF's out-of-the-money calls leave room for appreciation. XDTE's performance has been strong, outperforming similar ETFs due to its flexible call option strategy.

Roundhill S&P 500 0DTE Covered Call Strategy ETF employs a daily call option strategy on the S&P 500, generating weekly income and offering frequent distributions, making it unique among covered call ETFs. XDTE's strategy involves purchasing deep-in-the-money calls and selling same-day options, allowing it to follow market movements and rebound from drawdowns. Risks include limited upside potential and potential underperformance in a bear market, as XDTE trades appreciation for immediate income.

The Global X S&P 500 Covered Call ETF systematically writes 1-month call options, leading to underperformance compared to actively managed peers like EOI, ETV, and XDTE. XYLD's strategy offers lower volatility and better downside protection, evident from its smaller loss in 2022 compared to the S&P 500. Actively managed funds, especially those using zero-day options like XDTE, outperform XYLD in bull markets by better monetizing short-term trends and events.

XDTE stands out by using zero days to expiration, or 0DTE, options, enabling weekly income distributions and active management to exploit market volatility. The fund's innovative structure allows it to outperform peers like XYLD, offering a 14.6% total return versus 13.2% for SPY. Despite its unique approach, XDTE has a downside risk profile similar to the S&P 500, with limited downside protection in bear markets.

Roundhill's XDTE ETF uses a unique 0DTE covered call strategy on the S&P 500, offering high current income with daily option premiums. The fund's weekly payouts and 25.93% distribution rate stand out, but the -0.46% 30-Day SEC Yield suggests potential return of investor capital. XDTE can hedge against market volatility, but its capped upside in bullish markets and complex strategy pose risks.