"MSFW's 1.2x leverage means every down week in Microsoft hits the fund harder than the stock itself. Microsoft is down 24% year-to-date in 2026. MSFW is down 28.6% over the same period."
"Weekly distributions paid out of a shrinking asset base reduce the dollars generating future income. MSFW launched at $40.10 per share and now trades near $26.37."
"Roundhill's own prospectus acknowledges this: distributions may exceed the fund's income and gains and will be treated as a return of capital in that case."
MSFW targets 120% of Microsoft's weekly total return through leveraged exposure and weekly distributions. It has a 0.99% expense ratio and $30.7 million in assets. The fund's leverage amplifies losses, with MSFW down 28.6% in 2026 compared to Microsoft's 24% decline. Distributions are paid from a shrinking asset base, leading to NAV erosion. The fund's structure risks compounding losses, as distributions may exceed income, treated as a return of capital. Microsoft's significant price range adds to the drawdown potential for this leveraged fund.
Read at 24/7 Wall St.
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