At a glance
XPAY charges 0.49% a year. It has $155.4M in assets; it paid 21.18% of its price in distributions over the past 12 months, monthly. Over the past year it returned +12.7% with distributions reinvested (S&P 500: +11.5%).
The short version
Roundhill S&P 500 Target 20 Managed Distribution ETF (XPAY) seeks S&P 500 returns without owning the stocks. Instead, it holds deep in-the-money FLEX call options on the State Street SPDR S&P 500 ETF Trust (SPY). What sets it apart is a monthly payout targeted at 20% a year. The fund aims to have that payout treated as return of capital, which means much of each payment is investors' own money handed back. It costs 0.49% a year.
Price history
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XPAY +12.7% 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 | |
|---|---|---|---|---|---|---|
| XPAY official prospectus, to Dec 31, 2025 | — | +16.71% | — | — | — | +15.35% |
| Index9 index, same period | — | +22.52% | — | — | — | +18.69% |
| XPAY price data to Oct 27, 2026 | +13.3% | +12.7% | — | — | — | +16.8% |
- Over the year to Oct 27, 2026, XPAY returned +12.7%.
- Its worst full calendar year was 2025 (+16.5%); its best was 2025 (+16.5%).
- The deepest fall in its price history was 18.2% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 26, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +13.3% | — |
| 2025 | +16.5% | +16.71% |
| 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) | $8.9995 | |
| 2025 | $11.4345 |
What's inside
As of Jun 30, 2026, the fund held 0 securities; the ten largest made up 0% of assets, and 4.86% sat in cash and money-market holdings.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jun 30, 2026, investors added a net $22.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +10.58%, +5.16%, -1.15%.
How it works
Roundhill Investments manages XPAY actively. It doesn't own the 500 stocks in the S&P 500. Instead, it puts at least 80% of net assets into FLEX options on the State Street SPDR S&P 500 ETF Trust (SPY). FLEX options are exchange-listed options with customizable terms. The fund buys deep in-the-money calls. These are contracts giving the right to buy SPY at a price far below its market price, so their value moves nearly in step with SPY. As of June 30, 2026, 14 option positions made up about 95% of the fund. The largest was about 15%, and about 5% sat in cash.
Each year the fund takes its net asset value (NAV, the per-share value of its holdings) on the last day of December. It sets the annual payout at 20% of that figure and pays one-twelfth each month. Payments come out of fund assets whether the fund gains or loses. To raise cash, the adviser uses cash on hand or sells positions. It favors tax-sensitive methods such as tax-loss harvesting, which means selling holdings at a loss to offset gains. If the fund earns net investment income, it pays an extra distribution, pushing the rate above 20%.
The fund is non-diversified. It is concentrated in whatever sectors dominate the S&P 500, which as of March 31, 2026, meant information technology. Its options are cleared through a clearinghouse such as the OCC, which adds a layer of operational risk.
What it really costs
- XPAY charges 0.49% a year.
- Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $616 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XPAY | $50 | $157 | $274 | $616 |
In a retirement portfolio
It offers S&P 500-like exposure with a large fixed monthly payout, but that payout is mostly principal returned, the fund relies on options, and its record covers only about two years.
XPAY turns S&P 500 exposure into a fixed monthly payment. Its trailing 12-month yield was 21.18% as of October 27, 2026. Much of that is designed to be return of capital, not earnings. The payment is set from the December NAV, so it keeps coming in a falling market and is drawn from fund assets. That works much like selling shares at low prices. The fund launched in October 2024, so it has no record in the 2008, 2020 or 2022 sell-offs. Its only full calendar year, 2025, returned 16.71%. Its deepest drop was 18.2%, from February 19 to April 8, 2025. It recovered by June 26, 2025, about 2.6 months later. It costs 0.49% a year, or $616 over 10 years in the SEC's standard $10,000 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
- Retirees who want a fixed monthly payment, set once a year, and understand much of it is their own money returned.
- Taxable-account investors who value tax deferral: return of capital lowers cost basis instead of being taxed when paid, though this isn't guaranteed.
- Investors comfortable with S&P 500-like swings (one-year beta of 0.99 through October 27, 2026), delivered through SPY options for 0.49% a year.
Look elsewhere if
- Anyone who wants principal to hold steady: if the S&P 500 earns less than the 20% payout plus costs, share value shrinks.
- Investors who want a long record: launched in October 2024, it has not been through a full bear market like 2008 or 2022.
- Those preferring direct stock ownership: it holds 14 SPY option positions plus cash, and trailed its prospectus comparison index in 2025, 16.71% versus 22.52%.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Does XPAY pay monthly dividends?
Yes, XPAY pays every month, but most of the payments aren't dividends in the usual sense. The fund sets a yearly payout equal to 20% of its net asset value on the last day of December, then pays one-twelfth each month. In the 12 months to October 27, 2026, it paid about $10.91 per share, a trailing yield of 21.18%. The adviser aims to have the payments treated as return of capital, meaning investors' own money handed back.
Is XPAY's 20% yield sustainable?
Not from earnings alone. The 20% payout comes from fund assets whatever the market does. In any year the fund returns less than the payout, its share value shrinks. Through December 31, 2025, its return since inception was 15.35% a year, below the 20% rate. Each year's payment is reset from the December net asset value, so a shrinking fund also means smaller dollar payments the following year.
How are XPAY distributions taxed?
The adviser aims to have all of XPAY's distributions treated as return of capital. That money isn't taxed in the year you receive it unless it exceeds your cost basis, which is what you paid for your shares. Instead, it lowers your basis, which can mean a bigger taxable gain when you sell. There's no guarantee. Depending on conditions, some payments may be taxed as ordinary income, qualified dividends or capital gains.
What's the difference between XPAY and SPY?
SPY, the State Street SPDR S&P 500 ETF Trust, owns S&P 500 stocks. XPAY owns deep in-the-money FLEX call options on SPY, which move closely with it, plus some cash. It also pays out 20% of its value each year. XPAY charges 0.49% a year. In 2025 it returned 16.71%, versus 22.52% for the comparison index in its prospectus. The prospectus warns that the options can cause the fund to trail the S&P 500 by varying degrees.
Is XPAY good for retirement income?
It depends on what a retiree needs. XPAY may suit someone who wants a fixed monthly payment tied to the S&P 500 and accepts that much of it is principal returned. The drawbacks are real. Share value shrinks when returns trail the 20% payout. The fund launched in October 2024, so it has no bear-market record. It fell 18.2% from February to April 2025 before recovering by late June. It costs 0.49% a year.