MSFO vs. RDTE

Last updated Jun 14, 2026

MSFO (YieldMax MSFT Option Income Strategy ETF ) and RDTE (Roundhill Small Cap 0DTE Covered Call Strategy ETF) are both exchange-traded funds - MSFO is a Options Trading fund actively managed by YieldMax, while RDTE is a Derivative Income fund actively managed by Roundhill. Both are actively managed. Over the past year, MSFO returned -13.71% vs 29.53% for RDTE. At a 0.31 correlation, their price movements are largely independent. MSFO charges 0.99%/yr vs 0.95%/yr for RDTE.

Performance

MSFO vs. RDTE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in YieldMax MSFT Option Income Strategy ETF (MSFO) and Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSFO achieves a -16.15% return, which is significantly lower than RDTE's 14.54% return.

MSFO

• 1D: 0.02%
• 1M: -7.72%
• YTD: -16.15%
• 6M: -15.35%
• 1Y: -13.71%
• 3Y*: —
• 5Y*: —
• 10Y*: —

RDTE

• 1D: 0.98%
• 1M: 3.69%
• YTD: 14.54%
• 6M: 12.22%
• 1Y: 29.53%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

MSFO vs. RDTE - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSFO YieldMax MSFT Option Income Strategy ETF	-16.15%	15.69%	2.09%
RDTE Roundhill Small Cap 0DTE Covered Call Strategy ETF	14.54%	9.46%	8.32%

Correlation

The correlation between MSFO and RDTE is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (All Time) Calculated using the full available price history since Sep 10, 2024	0.31

The correlation between MSFO and RDTE shifts across timeframes, from 0.18 (1 year) to 0.31 (all time), reflecting how their relationship changes across market environments.

Return for Risk

MSFO vs. RDTE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MSFO

MSFO Risk / Return Rank: 5
MSFO Sharpe Ratio Rank: 4
MSFO Sortino Ratio Rank: 4
MSFO Omega Ratio Rank: 4
MSFO Calmar Ratio Rank: 6
MSFO Martin Ratio Rank: 5

RDTE

RDTE Risk / Return Rank: 57
RDTE Sharpe Ratio Rank: 53
RDTE Sortino Ratio Rank: 50
RDTE Omega Ratio Rank: 48
RDTE Calmar Ratio Rank: 68
RDTE Martin Ratio Rank: 65

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MSFO vs. RDTE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for YieldMax MSFT Option Income Strategy ETF (MSFO) and Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MSFO	RDTE	Difference
Sharpe ratio: Return per unit of total volatility	-0.64	1.59	-2.22
Sortino ratio: Return per unit of downside risk	-0.75	2.18	-2.94
Omega ratio: Gain probability vs. loss probability	0.90	1.27	-0.37
Calmar ratio: Return relative to maximum drawdown	-0.47	2.98	-3.46
Martin ratio: Return relative to average drawdown	-1.02	10.33	-11.35

MSFO vs. RDTE - Sharpe Ratio Comparison

The current MSFO Sharpe Ratio is -0.64, which is lower than the RDTE Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of MSFO and RDTE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MSFO vs. RDTE - Drawdown Comparison

The maximum MSFO drawdown since its inception was -29.29%, which is greater than RDTE's maximum drawdown of -24.32%. Use the drawdown chart below to compare losses from any high point for MSFO and RDTE.

Drawdown Indicators

	MSFO	RDTE	Difference
Max Drawdown Largest peak-to-trough decline	-29.29%	-24.32%	-4.97%
Max Drawdown (1Y) Largest decline over 1 year	-29.29%	-9.17%	-20.12%
Current Drawdown Current decline from peak	-23.17%	0.00%	-23.17%
Average Drawdown Average peak-to-trough decline	-6.69%	-4.61%	-2.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	13.60%	2.65%	+10.95%

Volatility

MSFO vs. RDTE - Volatility Comparison

YieldMax MSFT Option Income Strategy ETF (MSFO) has a higher volatility of 8.81% compared to Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE) at 6.32%. This indicates that MSFO's price experiences larger fluctuations and is considered to be riskier than RDTE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFO	RDTE	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.81%	6.32%	+2.49%
Volatility (6M) Calculated over the trailing 6-month period	19.32%	13.06%	+6.26%
Volatility (1Y) Calculated over the trailing 1-year period	21.81%	17.22%	+4.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.81%	19.32%	+0.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.81%	19.32%	+0.49%

MSFO vs. RDTE - Expense Ratio Comparison

MSFO has a 0.99% expense ratio, which is higher than RDTE's 0.95% expense ratio.

Dividends

MSFO vs. RDTE - Dividend Comparison

MSFO's dividend yield for the trailing twelve months is around 44.05%, less than RDTE's 45.06% yield.

Position	TTM	2025	2024	2023
MSFO YieldMax MSFT Option Income Strategy ETF	44.05%	33.91%	35.15%	6.44%
RDTE Roundhill Small Cap 0DTE Covered Call Strategy ETF	45.06%	50.16%	10.70%	0.00%

Frequently Asked Questions

Can I hold both MSFO and RDTE in my portfolio?

MSFO and RDTE have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSFO or RDTE?

MSFO has higher volatility (8.81%) compared to RDTE (6.32%). In terms of maximum drawdown, MSFO dropped -29.29% vs RDTE's -24.32%.

Which ETF is better, MSFO or RDTE?

On 1-year performance, RDTE leads with 29.53% vs -13.71% for MSFO. On fees, RDTE is cheaper at 0.95% per year. On volatility, RDTE has been the lower-risk option at 6.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSFO or RDTE?

Over the 1-year period, RDTE has performed better with a 29.53% return vs -13.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSFO or RDTE?

RDTE is cheaper with a 0.95% expense ratio, compared with 0.99% for MSFO.

Which ETF pays a higher dividend yield, MSFO or RDTE?

RDTE has the higher dividend yield at 45.06%, compared with 44.05% for MSFO.

What is the main difference between MSFO and RDTE?

MSFO is categorized as Options Trading, while RDTE is Derivative Income. They also come from different issuers: YieldMax and Roundhill. Their fees differ too: 0.99% for MSFO and 0.95% for RDTE.

Which has better risk-adjusted returns?

RDTE currently has the higher Sharpe Ratio (1.59 vs -0.64), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.