New ETF offers weekly income from Costco but caps gains and varies with market volatility

The Roundhill COST WeeklyPay ETF (COSW) launched in October 2025 to provide investors exposure to Costco with weekly income through an options-based strategy. It targets 120% of Costco's weekly total return but caps upside gains by selling call options, which can limit returns during Costco's stock rallies. The ETF's income depends on option premiums, which fluctuate with market volatility; low volatility reduces income, while high volatility boosts it. Investors should monitor Costco's fundamentals and option volatility closely, as the ETF's weekly payouts may vary and sometimes return principal rather than income, making it suitable for those comfortable with fluctuating distributions and understanding the trade-offs between income and capital gains.