Roundhill Launches WeeklyPay ETFs With 5 Funds Offering Enhanced Payouts

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Roundhill Investments has launched its WeeklyPay ETF suite with five single-stock ETFs on the Cboe Exchange.

The Roundhill NVDA WeeklyPay ETF NVW, Roundhill TSLA WeeklyPay ETF TSW, Roundhill AAPL WeeklyPay ETF AAPW, Roundhill COIN WeeklyPay ETF COIW, and Roundhill PLTR WeeklyPay ETF PLTW provide weekly distributions while offering 120% leveraged exposure to select stocks, appealing to income-focused investors.

"NVW, TSW, AAPW, COIW, and PLTW deliver a unique solution for income-focused investors by combining weekly distributions with enhanced exposure to some of the market's most dynamic and innovative companies," said Dave Mazza, CEO at Roundhill Investments. "WeeklyPay ETFs allow investors to benefit from amplified weekly returns while enjoying the potential for high income."

The actively managed ETFs use swap agreements and direct stock holdings to increase returns. They aim to achieve 1.2 times the calendar weekly returns (Friday close to Friday close) of their respective underlying stocks. There is one catch —while gains are increased by 20%, losses are also amplified by the same percentage.

Distributions are largely categorized as return of capital (RoC), offering potential tax advantages by deferring taxation until shares are sold.

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Additionally, these ETFs invest in short-term Treasuries, short-term U.S. Treasury ETFs, and money market funds as collateral.

Importantly, investing in a WeeklyPay ETF does not equate to direct ownership of the underlying stock.

Roundhill now plans to expand the WeeklyPay suite with ETFs for Microsoft, Meta, Google, Amazon, and Advanced Micro Devices.

By combining high-yield income with enhanced stock exposure, Roundhill is offering investors a new way to generate consistent returns while participating in the performance of high-growth companies.

As Mazza said, "The WeeklyPay ETFs represent the next generation of income-oriented strategies, combining weekly distributions with amplified exposure to select stocks."

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