This Microsoft ETF Pays Weekly Income and Has Lost 34% Since Launch

1 hour ago 2

John Seetoo

Wed, April 22, 2026 astatine 10:26 AM CDT 5 min read

Roundhill MSFT WeeklyPay ETF (MSFW) has mislaid -36.21% since inception successful July 2025, astir treble the -16.15% diminution of Microsoft (MSFT) itself, owed to 1.2x leverage amplifying losses arsenic Microsoft faces declining expert projections amid dense AI-driven capex spending.
Microsoft’s AI infrastructure buildout has prompted Bank of America and Piper Sandler to revise net projections downward, with Seeking Alpha estimating the banal is overvalued by 30%, creating headwinds for leveraged MSFT vulnerability vehicles similar MSFW.
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The usage of leverage successful investments and trading is simply a double-edged sword. While leverage tin magnify gains erstwhile the marketplace is heading successful the absorption of choice, it tin besides magnify losses erstwhile the marketplace goes against that direction. This particularly applies to securities with a precocious grade of volatility, since their gains and losses tin easy autumn into the “easy come, casual go” category.

The Roundhill MSFT WeeklyPay ETF (CBOE: MSFW) is simply a azygous banal ETF that provides 1.2x leveraged vulnerability to tracking Microsoft (NASDAQ: MSFT) portion generating a play dividend income from a swaps strategy. Although the existent organisation output whitethorn beryllium an eyebrow raising 26.14% astatine the clip of this writing, the leverage is besides bringing it down significantly. Since its inception successful July, 2025, MSFW is down -36.21%, portion successful the aforesaid timeframe, MSFT is down -16.15%.

READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks

The letters 'ETF' successful large, glowing achromatic font are centered against a acheronian bluish background. Behind the substance are assorted fiscal charts, including reddish and greenish candlestick patterns representing marketplace fluctuations, and a salient bluish enactment graph showing an upward trend. A subtle integer web grid with connected dots overlays the full background, suggesting connectivity and data. The wide temper is analytical and forward-looking, related to fiscal investing.

In theory, MSFW attempts to boost MSFT gains by an other 20% portion besides generating play income payouts of 30%+ yield. When faced with reality, specified has not been the case.

MSFW generates play income via swaps agreements and Microsoft communal stock, on with US Treasuries. Its progressive absorption is the main crushed for its pricey 0.99% disbursal ratio. While the 26% output sounds attractive, a sizable information of it has really been instrumentality of capital, arsenic the income generated has been insufficient to wage for the dividend. In fact, erstwhile it debuted past year, MSFW started with a 30% yield, which has subsequently fluctuated arsenic in-house superior was drawn down to marque each play dividend remittance.

MSFW’s opening terms past twelvemonth was successful the mid 40s, got arsenic precocious arsenic the 50s, and past has steadily fallen to the $30 scope astatine present. This represents the -36.21% terms drop; the NAV has eroded proportionately.

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