PEPS vs XDTE

PEPSBParametric Equity Plus ETF

XDTECRoundhill S&P 500 0DTE Covered Call Strategy ETF

In short

PEPS Active management at index-fund pricing. PEPS holds a U.S. large-cap base, then writes S&P 500 calls against offsetting long exposure: a beta-neutral overlay built to add return rather than swap upside for income.

XDTE The original 0DTE covered call fund. It sells same-day S&P 500 calls each morning and lets them expire at the close, capping the trading session while leaving the overnight stretch uncapped. Pays weekly.

Stated mandate

PEPS The Fund seeks long-term capital appreciation. It is actively managed, using a U.S. large-cap equity base and beta-neutral call overwriting on the S&P 500 with offsetting long exposure to seek incremental total return.

XDTE The Fund's primary objective is current income and its secondary objective is capital appreciation. It uses a synthetic covered-call strategy to provide weekly income while maintaining exposure to the S&P 500 Index's price return.

Why people hold it

• PEPS 0.10% is index-fund pricing for an actively managed strategy. Even the cheap, well-regarded active peers cost more: DFAU at 0.12%, FELC at 0.18%.
• Not a covered-call fund. The sold S&P 500 calls are paired with offsetting long exposure, so the overlay seeks incremental total return instead of capping upside.
• Ordinary 1940 Act ETF wrapper, U.S. large-cap equity, distributions paid quarterly. The complexity lives in the overlay, not the tax paperwork.
• Cost is the standout: the typical active U.S. equity ETF in this group charges several times what PEPS does, and fee drag is the one input you know in advance.

• XDTE The first ETF built on zero-days-to-expiry options on the S&P 500, live since March 2024. Roundhill has since cloned the design onto Nasdaq and Russell 2000 versions.roundhillinvestments.comnasdaq.com
• The short calls are written at the open and expire that afternoon, so the fund carries the index overnight without a call sitting on top of it.roundhillinvestments.com
• Long exposure comes from a deep in-the-money FLEX call on the S&P 500 rather than a basket of stocks, a clean way to track the index's price return.roundhillinvestments.com
• Income lands weekly, not monthly or quarterly, and the payout cadence is baked into how the strategy is run rather than bolted on.roundhillinvestments.com

Worth knowing

• PEPS Launched in November 2024. The overlay has not yet run through a full market cycle, so there is limited history to judge it on.
• A small, thinly traded fund. Bid-ask spreads can run wider than a mega-cap index ETF's, which shows up most on larger orders.
• The options leg adds moving parts: short index calls lose value in a sharp rally, and the offsetting long exposure is what has to make that back.

• XDTE At 0.97% a year it runs well above the 0.60% median for S&P 500 options-income funds, and plain buy-write rivals like IVVW (0.25%) and GPIX (0.35%) charge far less.
• Roundhill discloses that distributions may exceed the fund's income and gains, with the excess treated as return of capital. Check the tax detail on the fund page.roundhillinvestments.comroundhillinvestments.com 2
• A covered call trades upside for premium: gains above the strike during the session belong to the option buyer, so big intraday rallies get clipped.roundhillinvestments.com

Full PEPS profile⁠

Full XDTE profile⁠