The Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE) is an exchange-traded fund designed to generate income through an options strategy applied to U.S. small-cap equities. The ETF is managed by Roundhill Investments and trades under the ticker RDTE on the Cboe BZX Exchange.

Classified as an options-income ETF, the fund combines exposure to U.S. small-cap stocks with a covered call strategy using zero-days-to-expiration (0DTE) options. Its objective is to generate recurring income from option premiums while maintaining exposure to the small-cap equity market.

The ETF follows an active management approach, holding a diversified portfolio of U.S. small-cap stocks while systematically writing short-term covered call options to balance income generation with participation in the underlying equity market.

Diversification and sector exposure

RDTE provides exposure primarily associated with:

• U.S. small-cap stocks.

• Covered call strategies.

• 0DTE options.

• Income generation.

• U.S. equity market.

• Industrials.

• Consumer sectors.

• Technology.

The portfolio includes small-cap companies across multiple sectors of the U.S. economy, while the options overlay seeks to generate additional income through option premiums.

The ETF's performance depends both on the returns of the underlying equity portfolio and the results of its options strategy, which may limit upside participation during periods of strong market appreciation.

Structure and costs

RDTE shares trade on the secondary market on the Cboe BZX Exchange during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

Because the fund is actively managed, portfolio managers continuously adjust both the equity holdings and options positions in response to changing market conditions and the fund's income objective.

The ETF charges a management fee as outlined in its prospectus and does not apply a performance fee. Option premiums generated by the strategy may be distributed periodically to shareholders in accordance with the fund's distribution policy.

History and evolution of the ETF

The Roundhill Small Cap 0DTE Covered Call Strategy ETF was launched in 2024 as part of Roundhill's lineup of income-focused ETFs utilizing same-day expiration options strategies.

Since inception, the fund has offered investors a combination of exposure to U.S. small-cap equities and an actively managed options overlay designed to generate recurring cash flow.

In recent years, the rapid growth of the 0DTE options market and increasing investor demand for options-based income strategies have contributed to the expansion of ETFs employing this investment approach.

Additional Information

Roundhill Small Cap 0DTE Covered Call Strategy ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $174.75 million.

Over the past 12 months, Roundhill Small Cap 0DTE Covered Call Strategy ETF recorded a return of 30.50%, with its price trading between $26.40 and $34.21 during the same period.

The ETF is traded under the ticker RDTE.