YETH underperformed compared to Ethereum's gains.

crypthub

3 days ago

Fund Objective and Structure

The Roundhill Ether Covered Call Strategy ETF (YETH) aims to provide exposure to ether and generate income through a synthetic long options strategy. It utilizes the ProShares Ether ETF (EETH) and iShares Ethereum Trust ETF (ETHA) as key components. However, the fund’s complex structure and reliance on futures contracts haven't successfully tracked ether's performance.

Performance Discrepancies

YETH’s performance has significantly underperformed compared to ETHA, which tracks spot ether. While ETHA has yielded an 83% return over the past year, YETH has only achieved 8.9%. The fund's high 0.95% expense ratio contributes to this poor result, leading to NAV erosion and misleadingly high distribution rates.

Recommended Action

Investors should avoid YETH and opt for ETHA to gain direct exposure to ether. An individual can create a preferred income stream by purchasing ETHA and periodically selling a portion of the holdings. The fund’s current structure is ineffective and does not justify its expense ratio.