Roundhill's New ETFs Offer Weekly Income From Amazon, Meta, Netflix, And More

Roundhill Investments launched five new WeeklyPay ETFs, each aiming to deliver weekly dividends without sacrificing upside or using options.

The new additions include:

• Roundhill AMZN WeeklyPay ETF (BATS:AMZW), following Amazon (NASDAQ:AMZN),
• Roundhill BRKB WeeklyPay ETF (BATS:BRKW), following Berkshire Hathaway (NYSE:BRK),
• Roundhill HOOD WeeklyPay ETF (BATS:HOOW), following Robinhood (NASDAQ:HOOD)
• Roundhill META WeeklyPay ETF (BATS:METW), following Meta Platforms (NASDAQ:META)
• Roundhill NFLX WeeklyPay ETF (BATS:NFLW), following Netflix (NASDAQ:NFLX)

These launches bring the WeeklyPay family to 10 ETFs. Each fund aims to capture 120% of the aggregate return of its underlying security each calendar week, as well as a regular distribution.

That’s a clear divergence from the way most single-stock income ETFs operate, usually through selling covered calls, which exchange upside potential for option premiums. And with more than $15 billion flowing into such a strategy, the company obviously believes there is room for disruption.

Also Read: Global X’s New GXIG ETF Offers AI-Powered Bond ETF For Smarter Fixed Income Investing

A Different Kind Of Income ETF

Instead of depending on derivatives, Roundhill’s WeeklyPay ETFs employ leverage to enhance returns, aiming at 1.2x the performance of the underlying stock on a weekly basis. That multiplier, naturally, involves risk, particularly in downward environments, but it also avoids having investors forego gains in a bull market, as with covered call strategies.

The money also makes weekly payments, which might be enticing for income-oriented investors tired of the slow dribble of dividends.

From Tech Giants To Meme Stocks

Roundhill’s current roster already boasts single-stock ETFs tied to such names as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Tesla (NASDAQ:TSLA), and Palantir (NASDAQ:PLTR). But the company isn’t yet done.

It has applied for additional WeeklyPay ETFs tracking an eclectic roster: from blue chips such as Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL), to semicon-weighty names such as AMD (NASDAQ:AMD) and ASML Holding (NASDAQ:ASML), to speculative darlings such as Reddit (NYSE:RDDT), DraftKings (NASDAQ:DKNG), and MicroStrategy (NASDAQ:MSTR).

The message is plain: Roundhill is looking to track the entire gamut of investor demand—tech, momentum, income, and high-risk stocks—all under one umbrella.

What To Watch

While the structure has upside potential, it’s not without its cautionary tales. Leveraged exposure, even at a 1.2x rate, amplifies gains and losses as much as it amplifies the underlying. And while the absence of options sidesteps issues of premium decay and call-away risk, investors should still look at how distributions are made and what level of volatility to anticipate.

Read Next:

• Alibaba’s High-Speed Comeback: The AI-Commerce Cocktail Lifting ETF Hopes

Image: Shutterstock