At a glance
RDTE charges 0.97% a year. It has $172.2M in assets; it paid 43.03% of its price in distributions over the past 12 months, monthly. Over the past year it returned +13.0% with distributions reinvested (S&P 500: +11.5%).
The short version
Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE) is an actively managed fund that tracks the price of the Russell 2000 small-company index through options. Every business day it also sells call options on that index that expire the same day, to collect income. Its trailing 12-month yield was 43.03% as of October 27, 2026. In exchange, it caps gains on strong days, keeps most of the losses and charges 0.97% a year.
Price history
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RDTE +13.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| RDTE official prospectus, to Dec 31, 2025 | — | +9.50% | — | — | — | +14.42% |
| Solactive GBS Global Markets All Cap USD Index TR (reflects no deduction for fees, expenses or taxes) index, same period | — | +22.52% | — | — | — | +20.75% |
| RDTE price data to Oct 27, 2026 | +15.1% | +13.0% | — | — | — | +16.0% |
- Over the year to Oct 27, 2026, RDTE returned +13.0%.
- Its worst full calendar year was 2025 (+9.6%); its best was 2025 (+9.6%).
- The deepest fall in its price history was 24.2% (Dec 2, 2024 to Apr 10, 2025), recovered by Sep 8, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +15.1% | — |
| 2025 | +9.6% | +9.50% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $7.6500 | |
| 2025 | $14.7200 |
What's inside
As of Jun 30, 2026, the fund held 1 securities; the ten largest made up 6.08% of assets, and 2.88% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| Roundhill Weekly T-Bill ETF | 6.08% |
By country
United States 6.08%By asset type
Stocks 6.08%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $7.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +10.44%, +1.25%, +5.78%.
How it works
Roundhill manages the fund actively. It must put at least 80% of net assets into instruments tied to the Russell 2000 Index, a benchmark of smaller US companies. The fund usually doesn't own the stocks directly. It gets "synthetic" exposure, meaning it copies the index's moves without holding the shares. It does this through a Russell 2000 ETF, such as the iShares Russell 2000 ETF (IWM), or through deep-in-the-money call options. These are options with a strike price well below the index level, so they rise and fall almost in step with it. As of June 30, 2026, two Russell 2000 call options made up about 48% and 43% of the fund. Roundhill Weekly T-Bill ETF was 6.1% and cash was 2.9%.
At or shortly after the market opens each business day, the fund sells out-of-the-money "0DTE" (zero days to expiration) calls. These have a strike price above the index level and expire that afternoon. The buyer pays the fund a premium. If the index rises past the strike, losses on those calls cancel the extra gain. In the prospectus example, the calls are sold 1% above the index and the index rises 2%, so the fund gains only about 1%. On down days, the premium softens the loss only partly.
Because the cap resets daily, a rally made of many strong days can leave the fund far behind the index. The fund uses exchange-listed and FLEX options and cleared them through a clearinghouse. Portfolio turnover was 74%.
What it really costs
- RDTE charges 0.97% a year.
- Of that, 0.95% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $97 in the first year and $1,166 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| RDTE | $97 | $303 | $525 | $1,166 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
It pays very large monthly income, but it holds volatile small-company stocks, caps their gains while keeping most of the losses, and has just over two years of history.
RDTE launched on September 10, 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its only full calendar year was 2025, when it returned 9.5%. Its deepest drop was 24.2%, from December 2, 2024 to April 10, 2025. It got back to its old high on September 8, 2025, about five months after the low. A retiree who sold shares or took income during that stretch would have done so at lower prices. The fund paid $11.12 per share over the 12 months to October 27, 2026, a 43.03% yield, paid monthly. That payout was much larger than the 13% one-year total return, so the share price shrank over that period. Option income is usually taxed as ordinary income. The fund costs 0.97% a year, or $97 in the first year on a $10,000 investment under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want large monthly payouts tied to small-company stocks and accept that the payouts come from giving up the index's strongest days.
- Holders who can keep RDTE in a tax-advantaged account, since its option income is usually taxed as ordinary income rather than qualified dividends.
- People using a small, higher-risk slice who can live with drops like its 24.2% decline from December 2024 to April 2025.
Look elsewhere if
- Long-term growth investors: the daily cap on gains can leave RDTE well behind the Russell 2000 in strong small-cap rallies.
- Cost-focused investors: the 0.97% expense ratio is high next to a plain Russell 2000 ETF such as IWM.
- Anyone wanting a long track record: RDTE launched in September 2024 and missed the 2008, 2020 and 2022 downturns.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Does RDTE pay monthly dividends?
Yes. RDTE has paid distributions monthly. Over the 12 months to October 27, 2026, it paid $11.12 per share, a trailing yield of 43.03%. Most of that money comes from premiums the fund collects by selling same-day call options on the Russell 2000 Index, not from company dividends. This income is usually taxed as ordinary income rather than at the lower qualified-dividend rate. Payouts change with market conditions and aren't guaranteed.
Why is RDTE's yield so high?
RDTE's yield is high because the fund sells call options on the Russell 2000 every business day and pays out the premiums. That turns much of the index's possible upside into cash income. A high yield is not the same as a high return, though. The trailing yield was 43.03% as of October 27, 2026, while the one-year total return, which counts distributions, was 13%. That gap means the share price fell over the period as the fund paid out more than it earned.
What's the difference between RDTE and IWM?
IWM, the iShares Russell 2000 ETF, simply holds small-company stocks, so it captures all of the index's gains and losses. RDTE gets similar exposure, often through deep-in-the-money options, and then sells same-day calls on the index for income. That caps RDTE's gains on strong days, while losses are only partly offset by the premiums. RDTE charges 0.97% a year and pays large monthly distributions. Its total return can trail IWM's in rising markets.
What is a 0DTE covered call ETF?
A 0DTE covered call ETF sells call options that expire the same day they are sold. 0DTE stands for zero days to expiration. Each morning RDTE sells Russell 2000 calls with a strike price above the index level and collects a premium. If the index stays below the strike by the close, the fund keeps the whole premium. If the index rises past the strike, gains above that level are given up. The prospectus warns that these options react strongly to sudden market moves.
Is RDTE good for retirement income?
RDTE produces a lot of monthly income, but the risks are serious for retirees. Its trailing yield was 43.03% as of October 27, 2026. It fell 24.2% between December 2024 and April 2025 and took until September 2025 to recover. It launched in September 2024, so it has never been through a long bear market. It costs 0.97% a year. Its income is usually taxed as ordinary income, and big payouts can shrink the share price over time.