Defiance Nasdaq 100 Enhanced Income ETF (QQQT)

Overview

The fund is an actively managed exchange-traded fund (ETF) with a primary aim of generating current income. Unlike traditional ETFs that directly invest in the securities of a specific index, this fund employs a more complex strategy. It primarily involves investing in unaffiliated passively managed ETFs, which are themselves designed to track the performance of a particular index. Additionally, the fund employs a derivative strategy by selling daily credit call spreads on the index. This method is aimed at enhancing the fund's income generation capabilities while managing risk. It's important to note that the fund is classified as non-diversified, meaning it may concentrate its investments in a smaller number of issuers than a diversified fund.

Products and Services

• Passively Managed ETF Holdings

This fund invests in shares of unaffiliated passively managed ETFs. These ETFs are selected based on their ability to track the performance of a specific index. This method allows investors to benefit from the broader market movements and sector-specific trends without directly investing in individual securities.

• Credit Call Spread Strategy

To enhance income generation, the fund implements a daily credit call spread strategy on the index. By selling call options at one strike price and purchasing calls at a higher strike price for the same index and expiration date, the fund aims to capture the premium between the two. This strategy can potentially generate income while managing upside market risk.