Roll Yield

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Dictionary Says

Definition of 'Roll Yield'

The amount of return generated in a backwardated futures market that is achieved by rolling a short-term contract into a longer-term contract and profiting from the convergence toward a higher spot price. Profiting from roll yield is a common goal for many strategies used by traders in the futures market.
Investopedia Says

Investopedia explains 'Roll Yield'

Backwardation occurs when a futures contract will trade at a higher price as it approaches expiration compared to when the contract is farther away from expiration. Rolling into less expensive futures contracts allows the trader to consistently profit from the rise in a futures' price as it nears expiration.

The biggest risk to this strategy is that the market will shift to contango (opposite as backwardation). This type of changing market has led to major losses by various hedge funds in the past and is the reason why it should only be attempted by experienced traders.

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'Roll Yield'

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    http://www.investopedia.com/articles/optioninvestor/07/energy-ETF.asp
    ... When an ETF systematically rolls backwardated contracts, it can add small increments
    of return called "roll yield," because it is rolling into less expensive ...

  • ETFs Provide Easy Access To Energy Commodities

    http://www.investopedia.com/articles/optioninvestor/07/energy-etf.asp
    ... When an ETF systematically rolls backwardated contracts, it can add small increments
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    ... Because there is an insurance premium in longer-dated contracts, the VXX experiences
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  • 4 Ways To Trade The VIX

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    ... Because there is an insurance premium in longer-dated contracts, the VXX experiences
    a negative roll yield (basically, that means long-term holders will see a ...

  • 4 Ways To Trade The VIX

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    ... Because there is an insurance premium in longer-dated contracts, the VXX experiences
    a negative roll yield (basically, that means long-term holders will see a ...

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    ... Because there is an insurance premium in longer-dated contracts, the VXX experiences
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  • Can VIX Fix Your Returns?

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    ... Because there is an insurance premium in longer-dated contracts, the VXX experiences
    a negative roll yield (basically, that means long-term holders will see a ...

  • 4 Ways To Trade The VIX

    http://stocks.investopedia.com/stock-analysis/2011/4-Ways-To-Trade-The-VIX-VXX-VXZ-TVIX-XXV-XIV0517.aspx
    ... Because there is an insurance premium in longer-dated contracts, the VXX experiences
    a negative roll yield (basically, that means long-term holders will see a ...

  • Shake, Rattle and Roll: 3 Transport Stocks On The Move

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    ... Shake, Rattle and Roll: 3 Transport Stocks On The Move. ... GATX pays investors an annual
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  • Playing The Oil Rally With Funds

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    ... what they call the optimum yield strategy, which seeks to minimize contango by looking
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