Defiance ETFs, a leading provider of options income exchange-traded
funds, is excited to announce the launch of QQQT. QQQT's pioneering
strategy aims to achieve a target annual income of 20% in the
NASDAQ 100 using options. The fund aims for consistent monthly
distributions.
Strategy Overview:QQQT's strategy revolves
around holding shares of ETFs tracking the NASDAQ 100's performance
while simultaneously engaging in the selling of daily credit call
spreads on the Index. This innovative approach is designed to
maximize income potential while retaining upside growth
opportunities for investors.
Enhanced Potential Yield:QQQT's core strategy
includes the selling of call options paired with the purchase of
call options at higher strike prices. Leveraging short-term
options, QQQT aims to provide investors with an “enhanced” yield
compared to traditional option-based strategies.
Consistent Income Generation:QQQT's investment
approach is dedicated to generating income through option premiums
derived from selling Index call spreads. This income generation
strategy serves as the primary driver of the Fund's yield, with a
specific target of achieving an annualized income level of 20%.
Trading:On a daily basis, QQQT actively sells
credit call spreads on the NASDAQ 100, with a focus on options with
near-term expiration dates. This entails selling call options at or
near the money strike prices while simultaneously purchasing call
options above that strike price. In the event that the NASDAQ 100
value surpasses the upper strike price, QQQT stands to profit from
further upside appreciation in the Index's value.
QQQT's innovative approach to income generation through options
trading offers investors a distinct opportunity to participate in
the potential upside of the NASDAQ 100 while aiming to receive
attractive yet consistent monthly income payouts.
About Defiance ETFs
Founded in 2018, Defiance stands as a leading ETF issuer
dedicated to income and thematic investing.
Our suite of first-mover leveraged & thematic ETFs empowers
investors to express targeted views on disruptive innovations,
including artificial intelligence, machine learning, and quantum
computing, while our actively managed options ETFs are designed to
seek high income with lower volatility.
Important Disclosures
QQQT Disclosure: Defiance ETFs LLC is the ETF sponsor. The
Fund’s investment adviser is Tidal Investments, LLC (“Tidal” or the
“Adviser”). The investment sub-adviser is ZEGA Financial, LLC
(“ZEGA” or the “Sub-Adviser”).
Fund holdings and sector allocations are subject to change at
any time and should not be considered recommendations to buy or
sell any security.
The Funds' investment objectives, risks, charges, and expenses
must be considered carefully before investing. The prospectus
contains this and other important information about the investment
company. Please read carefully before investing. A hard copy of the
prospectuses can be requested by calling 833.333.9383.
Past performance is no guarantee of future results. High ratings
does not assure favorable performance.
Investing involves risk. Principal loss is possible. As
an ETF, the funds may trade at a premium or discount to NAV. Shares
of any ETF are bought and sold at market price (not NAV) and are
not individually redeemed from the Fund. A portfolio concentrated
in a single industry or country, may be subject to a higher degree
of risk.
Index Overview: The NASDAQ 100 Index is a
benchmark index that includes 100 of the largest non-financial
companies listed on the NASDAQ Stock Market, based on market
capitalization. This makes it a large-cap index, meaning its
constituents have a high market value, often in the billions of
dollars.
Indirect Investment Risk. The Index is not
affiliated with the Trust, the Fund, the Adviser, the Sub-Adviser,
or their respective affiliates and is not involved with this
offering in any way. Investors in the Fund will not have the right
to receive dividends or other distributions or any other rights
with respect to the companies that comprise the Index but will be
subject to declines in the performance of the Index.
Index Trading Risk. The trading price of the
Index may be highly volatile and could continue to be subject to
wide fluctuations in response to various factors. The stock market
in general has experienced extreme price and volume fluctuations
that have often been unrelated or disproportionate to the operating
performance of companies.
NASDAQ 100 Index Risks: The Index’s major
risks stem from its high concentration in the technology sector and
significant exposure to high-growth, high-valuation companies. A
downturn in the tech industry, whether from regulatory changes,
shifts in technology, or competitive pressures, can greatly impact
the index. It’s also vulnerable to geopolitical risks due to many
constituent companies having substantial international operations.
Since many of these tech companies often trade at high valuations,
a shift in investor sentiment could lead to significant price
declines.
Derivatives Risk. Derivatives are financial
instruments that derive value from the underlying reference asset
or assets, such as stocks, bonds, or funds (including ETFs),
interest rates or indexes. The Fund’s investments in derivatives
may pose risks in addition to, and greater than, those associated
with directly investing in securities or other ordinary
investments, including risk related to the market, imperfect
correlation with underlying investments, higher price volatility,
lack of availability, counterparty risk, liquidity, valuation and
legal restrictions.
Counterparty Risk. The Fund is subject to
counterparty risk by virtue of its investments in options
contracts. Transactions in some types of derivatives, including
options, are required to be centrally cleared (“cleared
derivatives”).
Options Contracts. The use of options contracts
involves investment strategies and risks different from those
associated with ordinary portfolio securities transactions. The
prices of options are volatile and are influenced by, among other
things, actual and anticipated changes in the value of the
underlying instrument, including the anticipated volatility, which
are affected by fiscal and monetary policies and by national and
international political, changes in the actual or implied
volatility or the reference asset, the time remaining until the
expiration of the option contract and economic events.
Distribution Risk. As part of the Fund's
investment objective, the Fund seeks to provide current monthly
income. There is no assurance that the Fund will make a
distribution in any given month. If the Fund does make
distributions, the amounts of such distributions will likely vary
greatly from one distribution to the next. Additionally, the
monthly distributions, if any, may consist of returns of capital,
which would decrease the Fund's NAV and trading price over time. As
a result, an investor may suffer significant losses to their
investment.
There is no guarantee that the Fund’s investment strategy will
be properly implemented, and an investor may lose some or all of
its investment.
None of the Fund, the Trust, the Adviser, the Sub-Adviser, or
their respective affiliates makes any representation to you as to
the performance of the Index. THE FUND, TRUST, ADVISER, AND
SUB-ADVISER ARE NOT AFFILIATED WITH, NOR ENDORSED BY, THE
INDEX.
New Fund Risk: The Fund is a recently organized
management investment company with no operating history. As a
result, prospective investors do not have a track record or history
on which to base their investment decisions.
A credit call spread is an options trading
strategy where an investor simultaneously sells a call option and
buys another call option with the same expiration date but at a
higher strike price. The premium received from selling the call
option is higher than the premium paid for buying the call option,
resulting in a net credit to the investor's account. This strategy
is used when the investor expects the price of the underlying asset
to either decrease or remain below the lower strike price by
expiration, allowing them to keep the net credit as profit. It
limits potential losses because the purchased call option provides
protection if the price of the underlying asset rises
significantly.
A call option gives the buyer the right, but
not the obligation, to buy an asset at a set price within a
specified time.
Selling call options at or near the money
strike prices involves offering call options with strike prices
close to the current market price of the underlying asset.
Diversification does not ensure a profit nor protect against
loss in a declining market.
Commissions may be charged on trades.
QQQT is distributed by Foreside Fund Services, LLC.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/afb441f2-e531-4011-b537-00ad6d31a752
Contact Data
David Hanono
Defiance ETFs
+1 833-333-9383