(XDTE) Roundhill Trust - Roundhill - Ratings and Ratios

The Roundhill S&P 500 0DTE Covered Call Strategy ETF (ticker XDTE) implements a covered-call overlay on the S&P 500 Index: it holds a full long exposure to SPX and simultaneously sells SPX call options that expire the same day (0-day-to-expiration). The premium collected from these daily options offsets equity exposure, generating income while capping upside potential. The fund is classified as a non-diversified, derivative-income ETF.

Key quantitative characteristics (as of the latest filing) include an expense ratio of roughly 0.70%, an average annualized premium yield of 7-9% (depending on VIX levels), and a correlation to the S&P 500 of about 0.65, reflecting the trade-off between equity performance and option income. The ETF’s implied-volatility exposure is high: a 1-point rise in the VIX typically adds ~0.15% to daily returns, while a steep market rally can truncate upside beyond the strike price of the sold calls.

Primary drivers of performance are (1) short-term market volatility, which inflates option premiums; (2) the directionality of the S&P 500, because the long position still captures broad market moves up to the call strike; and (3) sector composition, as the index’s heavy weighting in information-technology and consumer-discretionary stocks amplifies sensitivity to earnings cycles and monetary-policy shifts. Consequently, periods of elevated Fed rate uncertainty or earnings-season turbulence tend to boost the fund’s income generation, whereas sustained low-volatility trends compress premium income.

For a deeper, data-driven assessment of how XDTE’s risk-adjusted returns compare across similar 0-DTE strategies, you may find the analytics on ValueRay useful.