XDTE and QDTE: 0DTE Option Income ETFs With WEEKLY Distributions! From Roundhill Investments.
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- เผยแพร่เมื่อ 15 ก.ค. 2024
- #incomeinvesting #retirementstrategy #optionincome
This is a review of XDTE and QDTE from Roundhill. These ETFs are the first to offer weekly distributions. They sell daily options against their respective indexes to generate income. Lets take a look!
Thanks for watching! Have fun and keep investing!
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0:00 Intro
0:48 XDTE and QDTE First Look
1:48 Long Leg using Index Options
3:24 Short 0DTE OTM Call Options
4:04 Best vs Worst and NAV Erosion
5:39 Distribution History
7:39 Expense Ratio and Dist Rate
8:32 Performance so far
9:40 Summary
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Additional Tags:
Option Income ETFs. ETF investing in retirement. Income investing in retirement. Passive income.
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I’ve worked hard to save about $500,000 for retirement, and now I’m ready to turn my savings into a paycheck. But how much can I afford to withdraw from savings and spend is what I don’t know. If I spend too much, I risk being left with a shortfall later in retirement. But if I spend too little, I may not enjoy the retirement I envisioned. What’s your advice on this please?
I'd highly recommend using the 4% rule, maybe you'd know just how much to spend after retirement
stay flexible - If the market performs poorly, you may not be comfortable increasing your spending at all. If the market does well, you may be more inclined to spend more on some ''nice to haves''
Personally, I used the 4% rule as a guideline, didn't follow it precisely. For greater level of confidence around portfolio longevity and ability to meet my goals, I use a well experienced advisor from Montana. In a nutshell, I'm semi-retired and only work 7.5 hours weekly since getting fully invested in the markets for 5 years now, amassing about $1.3m so far, after subsequent investments.
@@Lindsay-jy such an eye opener! never heard or used the 4% rule, I spend what I want and when I want, however i'm interested in supplementing my streams of income by investing, mind if i look up your advisor please?
Katherine Nance Dietz is the licensed FA I use. Just google the name. You’d find necessary details to work with and set up an appointment. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
The main thing with these particular etfs that I pay attention to is the fund amount wether its increasing or not. So far its looking good
I can not express, enough, how grateful I am for your deep dives into ETF's that I otherwise wouldn't give a second look. I don't know if any of these ETF are/will be good long term but they are definitely fun to look at in terms of how will owning some of them assist in my long term investing plans. Thanks for the information. Have a great week.
Thanks! Appreciate it!
These are are awesome working on getting as many shares as possible . Weekly payments. That stuff compound fast
Same here, loading up weekly
If you want it to compound you shouldn't have distributions, right?
Excellent summary. I hope you do an update in the future when we have more info..
Thanks, will do!
👍#130 I always appreciate the period about the options strategy (in a lot of your videos), particularly sharing your trading experience as well as the example when Roundhill's strategy didn't work. Great stuff. Many thx! 🎉
Thanks!
I own xdte aad qdte. There is something to look forward to each week. I love the weekly cash. I may loose, but I'll feel like a winner until then, HA, HA.
Ha!
I been watching these for a few weeks and really was surprised to see how well they've kept up with their respective indexes. I ended up starting a position on both just 1% allocation for now. I probably wouldn't go more than 2% just because the expense ratio and I also not a big fan of synthetic positions. I'd rather own the underlying stocks in the indexes. But I do like these so far so making an exception until I have a reason to dump them I'll hang on to them
Been in QDTE for a few weeks now and I’m really happy with it so far. I do like the weekly distribution as my wife and I start moving toward retirement.
Nice! Good luck.
XDTE and QDTE were not the first to offer weekly dividend ETFs.
The first to offer weekly dividend payouts was SOFI with their 2 ETFs: TGIF and WKLY back in 2020. Unfortunately for them, both were closed and liquidated earlier this year (2024) due to lack of investor interest.
That sofi fund sucks it was like 5 cents spending $80 a share
Weekly distribution is definitely a buy 👍…
Have them both and weekly paid around 10 bucks a week and the stock itself is in the plus in my traditional account. Holding what I have for now and 40 dollars a month is not bad at all. We shall see if I invest more.
I like to vary indexes and strategies, so I have QDTE, but went with SPYT for the S&P and a call spread strategy. I focus mostly on the major indexes with smaller positions in other funds...well, YMAX is a pretty large position too, maybe getting a bit greedy, lol.
I want daily income. Waiting for $DALY to come out.
That would be interesting with a huge cost for the fund managers... and forget margin. It just would be too expensive to do. Maybe robots soon?
Thank u sir
I bought a couple lots of each, going to build it to 1k a week and see what happens.
As of about a month ago, I have about 40% of my portfolio in a combination of QDTE, XDTE, and SVOL, and the rest is in more traditional SPY / QQQ / sector-specific ETFs with some option hedges on SPY. Too early to tell who's going to come out on top, but so far, the traditional portfolio is up 1.5% and the income-oriented portfolio is up 2%. In my ideal world, the income portfolio will pay the bills while the other one can just sit there getting fatter than a Thanksgiving turkey. It's a nice thought, anyway. Ask me in a year if I've gone broke. 🙀
I think it's a good strategy, I have a slightly similar one. Have you looked at DIVO and IDVO as well?
TGIF was paying weekly dividends but they went under in Feb of this year. I've never heard of Roundhill so I'm automatically skeptical of this one.
true!!
Yes. There were 2 that closed up shop.
Great explanation ! Sounds too good to be true 😀 but I gave it shot and bought 100 shares. So far so good, that Friday paycheck is nice.What will happen if market corrects 20-80% ?! Will QDTE still pay out dividends or it will go to $0 dividends ?! Will this strategy perform better in correction bearish market or bullish?
Being 0 dte... they get most of the upside vs others that do monthly.. compounding weekly beats everything else.
@@KentuckyHillbilly yup and use those dividends to buy dividend growth stocks
Been holding 2 shares as an experiment since week 2 for 1 yr until dumping into it
It's certain that this year will bring more challenging challenges. Looking back, I realized that I spent the entire previous year making expensive financial blunders because I was so consumed with worrying about my portfolio. I was forced to decide between raising my investments and purchasing a home. I discovered that the property I had bought needed more work than I had anticipated after deciding to sell my investments. It's becoming more difficult to determine how much longer I can take this.
I like ISPY
I will be reviewing it!
If market tanks this will quickly go to zero because of that deep in the money call, I am sure they will roll it before it is too late but still this seems like a good product for melt-up scenario
Nasdaq/QQQ move too much, but S&P could work
These are on my watch list too. What would be your criteria to buy?
For me, NAV stability and distribution history will be two key things to consider.
I don't really need the income yet. I'm more focused on growth. I do like products that offer some growth and income. These 2 are not a great fit for me but perhaps down the line they would make more sense in my portfolio. I would also need to see them hold up against other similar products during different market cycles since some alternatives (JEPI, JEPQ, GPIX, BALI, DIVO) that I own have lower expenses.
What happens when that March 2025 option expires? Will the NAV crash? Do we know anything about NAV erosion on these?
Buy for me
I am new in your channel. Can you make a video about Strike price and break even price? Thanks
This should cover it well:
th-cam.com/video/-ZrZoeIs8yU/w-d-xo.html
I'm all in on NVDY at the moment and this is would be a nice 2nd holding to my portfolio
First buy will be tomorrow morning.
👍good luck!
Darn, weekly distribution. I guess they wrote weekly options then? Thanks DAVE.
Daily! 0DTE.
I had both but sold them as they didnt pay enough
Wow! What would be enough?
@@wealthadventures -i'm getting more with Ymag and Ymax
I bought 1 share of QDTE just to tap into that weekly dividend coolness. Collected my first dividend last week. Not quite at the point where I need the dividends to fund my retirement, but this was just interesting enough to start a test on. If it works out over the next 16 months, QDTE may just have a spot in my retirement income portfolio.
Sounds like a plan!
Can you check out MDST?
Hey Karl. I own 3 of the top 5 holdings directly (ET, KMI, EPD). You could use this ETF but with an expense ratio of 0.8%, I prefer to buy my favorites and give up some diversification. The MLP's will also send you a K-1 at year end. Some people don't want to mess with that but I don't mind.
If market crash, as they are holding call option there won’t be much affect correct?
The way I understand it, they hold 100% in the nasdaq and sell calls on 100% of that during the day... so during the day your at the whims of the sold call contract but overnight your riding the nasdaq
Sofi was first, but sadly both are gone
I am building a small position in QDTE. The weekly distribution is not really important, but I'll take it. At some point adjustments in the option world might have to occur as the 0 DTE volumes get really crazy.
Yes they do! Quick search says 43% of SPX options are 0DTE in 2023 and growing...
The fisrt ETF that offers weekly distributions has been dead half years ago.
SPYT better
These things aren't going to 0. We got consensus on that.
You have my vote!
@@wealthadventures Would they do a reverse stock split and you are totally screwed?
@@Chewie576 It still boils down to total return. Split or reverse split doesn't change anything. If they are stripping off too much income, the fund will go down... but you have the income.
They're not the first weekly distributing ETFs. You've been misinformed.
I'm aware of WKLY and TGIF but those were both closed. Are there others now besides these 2?
@@wealthadventures No. Just saying they weren't first. But they're certainly all we got as far as weeklies. (FYI - More are coming.)
Is it safe to get in this early ?
Safe? I think so. Just my personal view!
Need daily distribution
Buy on XDTE
A must! Lol.
What a garbage etf 😂
So what do you like?