RDTE offers a unique covered call strategy on the Russell 2000, capturing upside and generating high income with weekly payouts. Despite a 20% NAV drop since inception, RDTE maintains aggressive ~32% yield, blending option income with capital return for stable dividends. RDTE has outperformed both IWM and RYLD, thanks to its overnight naked position and effective option writing, especially in gradual small-cap markets.
RDTE's strategy of selling 0DTE options and offering high distributions has led to a significant decline in price, underperforming traditional small-cap ETFs. The current high-interest rate environment and market volatility have negatively impacted RDTE, making it difficult for the fund to generate sufficient income. Despite a high dividend yield, RDTE's distributions are entirely from return of capital, indicating the underlying strategy isn't sustainable.
RDTE offers high yield and outperformance of the Russell 2000 through a unique 0DTE covered call strategy, making it a compelling income vehicle. The fund's impressive 34% distribution rate, though volatile, provides favorable tax treatment through return-of-capital distributions, enhancing its appeal for income-focused investors. I recommend RDTE for aggressive income investors with up to a 5% allocation, and moderate to conservative investors with 3% and 2% allocations respectively.
RDTE RDTE In 1 month Estimated | Other | $0.27 Per Share |
RDTE RDTE 1 weeks ago Paid | Other | $0.27 Per Share |
RDTE RDTE 2 weeks ago Paid | Other | $0.26 Per Share |
RDTE RDTE 4 months ago | Other | $0.15 Per Share |
RDTE RDTE 4 months ago Paid | Other | $0.19 Per Share |
RDTE RDTE 5 months ago Paid | Other | $0.2 Per Share |
RDTE RDTE In 1 month Estimated | Other | $0.27 Per Share |
RDTE RDTE 1 weeks ago Paid | Other | $0.27 Per Share |
RDTE RDTE 2 weeks ago Paid | Other | $0.26 Per Share |
RDTE RDTE 4 months ago | Other | $0.15 Per Share |
RDTE RDTE 4 months ago Paid | Other | $0.19 Per Share |
RDTE RDTE 5 months ago Paid | Other | $0.2 Per Share |
BATS Exchange | US Country |