Roundhill Investments announced the launch of the first five of its new WeeklyPay ETF suite on the Cboe Exchange on Wednesday, February 19, 2025. The funds offer weekly distributions with leveraged exposure to specific single stocks, expanding the income playing field.
The WeeklyPay ETFs combine weekly income with leveraged exposure to stocks that include Nvidia, Tesla, Apple, Coinbase, and Palantir Technologies. Each ETF focuses on one stock and seeks to generate weekly returns of 120% of the performance of the underlying company. The funds include:
- The Roundhill NVDA WeeklyPay ETF (NVW)
- The Roundhill TSLA WeeklyPay ETF (TSW)
- The Roundhill AAPL WeeklyPay ETF (AAPW)
- The Roundhill COIN WeeklyPay ETF (COIW)
- The Roundhill PLTR WeeklyPay ETF (PLTW)
“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,” Dave Mazza, CEO at Roundhill Investments, explained in the press release. “WeeklyPay ETFs allow investors to benefit from amplified weekly returns while enjoying the potential for high income.”
Under the Hood of the WeeklyPay ETF Suite Strategy
The ETFs are actively managed and seek to generate 1.2 times the calendar weekly returns (Friday close to Friday close) of a company. They do so by investing primarily in swap agreements, and also invest in the company’s stock. A swap is a type of derivative that trades on the over-the-counter market. Swaps happen between two counterparties where assets, payments, or cash flows are exchanged over a set period of time.
As with all strategies that use leverage, the ETFs carry heightened risks for investors. In weeks where the underlying stock gains, it’s expected that the relevant ETF will generate returns 20% over the gains of the stock. This also means that when the stock declines, the fund will reflect losses 20% greater than the underlying.
Income distributed by the WeeklyPay ETF suite is impacted by the recent total returns of the stock as well as implied volatility of the stock. The strategy seeks to distribute weekly income largely as return of capital, which offers tax advantages. Return of capital occurs when the distribution paid back is part of the investor’s original capital. RoC distributions are not taxed until the investor sells their shares of the fund.
The ETFs also invest in short-term Treasuries, short-term U.S. Treasury ETFs, and money market funds for collateral purposes. Investment into one of the WeeklyPay ETFs does not equate to investment in the underlying stock.
Roundhill a Pioneer in ETFs
Roundhill remains a pioneer within income strategies for its weekly payment approach. Funds like the Roundhill S&P 500 0DTE Covered Call Strategy ETF (XDTE) and the Roundhill Bitcoin Covered Call strategy ETF (YBTC) pay income on a weekly basis, as do many of the firm’s other ETFs. The team at Roundhill is no stranger to innovation, having launched numerous first-to-market products that include the recent WeeklyPay ETFs. Collectively, the team has brought more than 100 ETFs to market.
Roundhill also recently filed to expand on the WeeklyPay ETF suite with five additional companies. These include Microsoft, Meta, Google, Amazon, and Advanced Micro Devices.
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