Roundhill's LLM ETF registration takes effect at 0.65%

The effective prospectus for Roundhill LLM ETF LABZ identifies LLM companies as those with at least 50% of revenues or profits attributable to the development, training, maintenance, or sale of large-language-model products. Under normal circumstances the fund invests at least 80% of net assets, plus borrowings, in equity securities or in swap agreements and forward contracts that provide exposure to those companies, and it values those derivatives at notional for the test. How much of that 80% is stock that clears the screen, and how much is notional swaps and forwards, is not a question the paper answers.

This is a ticker change, not a second LLM fund. Roundhill ETF Trust first registered the series on June 2 as Roundhill LLM ETF under ticker AIMO. Friday's prospectus uses LABZ. The issuer still hosts a product page for AIMO that carries the same 80% policy, 50% screen, and notional clause. The prospectus states that the fund has not commenced operations and does not name a listing date.

Up to 20% of net assets may sit in companies below the cutoff, or in companies that own a substantial equity stake in an LLM company. The fund is classified as non-diversified. Roundhill Financial Inc. has agreed to a unitary management fee of 0.65% of average daily net assets. Distribution and estimated other expenses are shown at 0.00%, so total annual fund operating expenses are 0.65%. The prospectus names Nasdaq as the listing exchange.

Post-Effective Amendment No. 335 became effective immediately under Rule 485(b) and registers an unlimited number of shares. That filing is the step that lets the trust offer the shares.

A 50% revenue screen is a tight definition of who counts. An 80% policy that values swaps and forwards at notional is how that screen can still be met. Those two facts now sit in an effective prospectus. They do not yet describe a portfolio.