Roundhill HOOD WeeklyPay ETF (HOOW US) – Portfolio Construction Methodology

The investment approach informing the actively managed Roundhill HOOD WeeklyPay ETF aims to pay weekly distributions while delivering approximately 1.2× the calendar-week total return of Robinhood Markets Inc. Class A shares through derivatives and cash instruments. The fund invests at least 80% of assets in total-return swaps referencing HOOD and in HOOD shares, resetting its leverage factor weekly; it also holds short-term U.S. Treasuries, Treasury ETFs, and money-market funds as collateral and liquidity in USD. Portfolio construction targets aggregate 1.2× weekly exposure, with notional adjusted each reset; the fund is non-diversified and industry-concentrated consistent with HOOD’s classification. Weekly distribution amounts are formulaic and incorporate recent underlying total return and implied volatility; a significant portion may be return of capital. The fund does not take defensive positions and seeks exposure over calendar weeks rather than daily compounding. Risk management centers on counterparty, concentration, and swap collateral controls; trims occur as leverage and swap notional are rebalanced at each weekly reset.

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