The Roundhill S&P 500 Target 20 Managed Distribution ETF is an actively managed ETF that pays monthly distributions at a target annualized rate of 20% while maintaining exposure to the S&P 500 Index. It does so by investing at least 80% of its net assets in FLEX Options (Flexible Exchange Options) that reference the SPDR S&P 500 ETF (NYSEARCA:SPY ) . These specialized options contracts allow the fund to replicate S&P 500 exposure while generating the cash flow needed for its high monthly distribution payments.
The STF Tactical Growth & Income ETF is an actively managed ETF that provides a very solid monthly yield while mitigating downside risk. It uses its own proprietary algorithmic model called the Tactical Unconstrained Growth (TUG) Model to do this. The fund invests across three main asset categories: U.S. equity securities or ETFs that replicate the NASDAQ-100 Index, long-duration U.S. Treasury securities, and short-term Treasury bills or cash equivalents.