March 7 marked two years since Roundhill Investments launched the first two zero-days-to-expiration (0DTE) covered call ETFs, the Roundhill S&P 500 0DTE Covered Call Strategy ETF (XDTE) and the Roundhill Innovation-100 0DTE Covered Call Strategy ETF (QDTE). (A third fund, the Roundhill Russell 2000 0DTE Covered Call Strategy ETF (RDTE), launched on September 9, 2024.) To mark the occasion, Roundhill has released some interesting data on the two ETFs.
The 0DTE options strategy involves selling call options in the morning that expire at the end of the same trading day. Options with daily expirations only trade on the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust ETF (QQQ) and the iShares Russell 2000 ETF (IWM).
Fund managers actively manage the 0DTE call option trading.
In a recent email communication, Roundhill shared this data about QDTE and XDTE:
QDTE:
● 77% win rate (% of trading days when sold 0DTE calls expired worthless)
● $294 billion cumulative option notional sold
● 39.89% total return since inception
XDTE:
● 76% win rate (% of trading days when sold 0DTE calls expired worthless)
● $132 billion cumulative option notional sold
● 33.98% total return since inception
Returns of 34% to 40% over two years from high-yield investments look very attractive. Remember that the markets went through a bear market from February to April 2025, and the indices have struggled since the end of October 2025.
Both ETFs pay weekly dividends, with payments on Fridays. QDTE has a current distribution yield of 47.1%. XDTE yields 21.6%.
The Roundhill email included this commentary:
As we cross the two-year mark, XDTE and QDTE continue to demonstrate how an actively managed covered call strategy selling 0DTE options can translate daily options activity into weekly income potential.
This milestone comes at a time when market volatility is picking up again, with geopolitical developments reminding investors how quickly conditions can shift. In environments like these, strategies designed to generate income from options premium can become particularly relevant for investors seeking income and diversification.
Since the launch of QDTE and XDTE, other ETF sponsor companies have launched their own 0DTE ETFs. I regularly compare returns across the comparable 0DTE ETFs to ensure the best-in-class are included in the recommended portfolio for our ETF Income Edge service.
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