"The fund uses total return swap agreements and Microsoft stock, along with short-term U.S. Treasurys to achieve this structure. The expense ratio is 0.99%."
"Since its July 2025 launch, MSFW has experienced a 34% loss, a period during which Microsoft itself declined roughly 23% year-to-date through March 2026."
"Weekly payments ranged from $0.966 in September 2025 to $0.074 in February 2026, making cash flow planning nearly impossible for income-dependent investors."
The Roundhill MSFT WeeklyPay ETF, launched in July 2025, targets 1.2 times the total return of Microsoft shares while providing weekly income distributions. The fund employs total return swap agreements and Treasury collateral. However, since its launch, MSFW has faced a 34% loss, exacerbated by the leveraged structure. Weekly distributions have fluctuated significantly, complicating cash flow planning for investors. The disparity between the advertised yield and actual investor experience highlights the risks associated with leveraged income strategies.
Read at 24/7 Wall St.
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