Roundhill Launches Income ETFs Targeting AMZN, META, BRK.B
- Roundhill Investments has introduced five WeeklyPay ETFs targeting major tech stocks.
- The new funds aim to deliver weekly distributions while pursuing enhanced returns.
- The launch brings the total WeeklyPay suite to 10 funds across major companies.
Roundhill Investments launched five new "WeeklyPay" exchange-traded funds targeting companies including Amazon.com Inc. (AMZN), Meta Platforms Inc. (META) and several others, expanding the firm's strategy of combining weekly income distributions with leveraged exposure to individual stocks.
The new ETFs, which began trading June 18 according to a press release, also target Berkshire Hathaway Inc. (BRK.B), Robinhood Markets Inc. (HOOD), and Netflix Inc. (NFLX).
New Roundhill ETFs Target Big Tech
The new Roundhill funds include:
- Roundhill AMZN WeeklyPay ETF (AMZW)
- Roundhill BRK/B WeeklyPay ETF (BRKW)
- Roundhill HOOD WeeklyPay ETF (HOOW)
- Roundhill META WeeklyPay ETF (METW)
- Roundhill NFLX WeeklyPay ETF (NFLW)
The funds represent an alternative to traditional single-stock, covered-call ETFs, which have attracted over $15 billion in investor assets but cap upside potential through option premiums, according to the announcement. The WeeklyPay structure aims to deliver weekly distributions while targeting 120% of each underlying stock's weekly performance before fees and expenses.
"With WeeklyPay ETFs, investors don't have to choose between income and growth," Dave Mazza, Roundhill Investments CEO, said in the release. "Investors want income, but they also don't want to sacrifice growth potential."
Unlike covered-call strategies that sell options to generate income, WeeklyPay ETFs use swap agreements to achieve their exposure, according to the press release. This structure allows the funds to maintain upside participation while providing regular income distributions.
Each fund carries a 0.99% expense ratio and trades without ETF options, according to the fund fact sheets. The funds are actively-managed and distributed by Foreside Fund Services.
Enhanced Exposure Strategy
The funds employ actively managed strategies that seek to amplify returns through enhanced exposure to their respective underlying stocks, according to Roundhill.
The five new WeeklyPay ETFs join the existing suite of funds, including:
- Roundhill AAPL WeeklyPay ETF (AAPW)
- Roundhill COIN WeeklyPay ETF (COIW)
- Roundhill NVDA WeeklyPay ETF (NVDW)
- Roundhill PLTR WeeklyPay ETF (PLTW)
- Roundhill TSLA WeeklyPay ETF (TSLW)
Roundhill has filed for additional WeeklyPay ETFs targeting exposure to other major companies including Advanced Micro Devices Inc. (AMD), Advanced Research Management (ARM) and Uber Technologies Inc. (UBER), among others, according to the announcement.
