QDTE: The High Yield Is An Illusion

Summary

• The Roundhill Innovation-100 0DTE Covered Call Strategy ETF is among the highest-yielding covered call ETFs out there.
• Seeking Alpha Quant says that it yields 43%, and the fund's dividend history backs that up.
• However, it turns out that much of QDTE's apparent yield comes from returns of capital. Such returns eat away at NAV and arguably are not "true" yields.
• Additionally, the fund has a very short track record, having been launched in 2024.
• I make the case that QDTE is not the best covered call ETF on the market.

option traders

Scott Olson

The Roundhill Innovation-100 0DTE Covered Call Strategy ETF (BATS:QDTE) is among the highest-yielding covered call ETFs out there. Based on what it calls the Innovation-100 Index (really the NASDAQ-100), the fund writes out-of-the-money options with 0

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