# Roll Yield

*Derivatives & Options — Finicade finance glossary*

Roll yield is the gain or loss from replacing an expiring futures contract with a later-dated one. In contango the next contract costs more, so rolling bleeds value; in backwardation it costs less and rolling adds return. This is why commodity ETFs can fall for years while the spot price is flat — the fund is paying to roll every month, and that cost compounds far more than most holders expect.

**Also known as:** roll return, rolling futures

**Related terms:** [Contango](https://finicade.com/glossary/contango), [Backwardation](https://finicade.com/glossary/backwardation), [Futures Contract](https://finicade.com/glossary/futures-contract), [Commodities](https://finicade.com/glossary/commodities), [Cost of Carry](https://finicade.com/glossary/cost-of-carry)

Source: https://finicade.com/glossary/roll-yield