Roundhill ETF Trust - Roundhill Ultra Short Duration No Dividend Target ETF

Frequently Asked Questions About XBOX

What does XBOX invest in?

XBOX uses a market-neutral options strategy built around box spreads, which combines synthetic long and short positions to create a defined payoff at expiration. These positions are constructed using exchange-listed options, typically on broad equity ETFs or indices, and are designed to lock in a fixed return based on the difference between strike prices. The portfolio holds multiple box spreads with maturities generally ranging from one to six months, with positions added, rolled, or replaced over time to reflect changing market conditions and implied rates. Because the long and short components offset each other, returns are largely independent of equity market direction and instead reflect prevailing short-term financing conditions and pricing in options markets. Collateral may be held in cash, cash equivalents, or US government securities, and the strategy is managed with the intention of avoiding regular income distributions.

What is the expense ratio of XBOX?

Roundhill ETF Trust - Roundhill Ultra Short Duration No Dividend Target ETF (XBOX) charges an expense ratio of 0.19%. This is the annual fee deducted from fund assets to cover management and operations.

Is XBOX a good long-term hold?

XBOX is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does XBOX's daily reset work?

XBOX rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is XBOX?

Roundhill ETF Trust - Roundhill Ultra Short Duration No Dividend Target ETF (XBOX) manages $286.7M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is XBOX actively managed or an index fund?

XBOX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.