QQQY

The Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY) is an exchange-traded fund designed to generate current income through an options-based strategy combined with exposure to the Nasdaq-100 Index, which consists of 100 of the largest non-financial companies listed on the Nasdaq. 

The ETF is managed by Defiance Asset Management LLC and trades on NYSE Arca under the ticker QQQY.

Classified as a U.S. equity ETF employing an income-oriented options strategy, QQQY aims to reflect, before fees and expenses, the aggregated performance of the equities comprising the Nasdaq-100 while systematically capturing option premiums.

Rather than solely replicating the index, the fund implements an active covered call strategy on a portion of its Nasdaq-100 exposure, generating additional cash flow through premiums received from option contracts.

The Nasdaq-100 Index includes non-financial companies listed on the NASDAQ and is weighted by modified market capitalization. The index is reviewed periodically in accordance with the index provider’s methodology.

QQQY maintains exposure to Nasdaq-100 constituents while actively managing its options positions based on market conditions and predefined strategy parameters.

Diversification and sector exposure

QQQY provides exposure to the U.S. equity market, with a concentration in large-cap growth sectors, including:

• Information technology.

• Communication services.

• Consumer discretionary.

• Health care.

• Industrials.

Structure and costs

Shares of QQQY are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund charges a management fee and does not charge a performance fee. QQQY makes periodic income distributions, primarily derived from option premiums and, when applicable, dividends from the underlying equities. The ETF has a single share class and trades exclusively under the ticker QQQY.

History and evolution of the ETF

The Defiance Nasdaq 100 Enhanced Options Income ETF was launched in 2021, during a period of increasing investor interest in strategies combining equity exposure with derivative-based income generation.

Over time, QQQY has been incorporated into allocation strategies seeking to combine exposure to large-cap growth equities with income derived from options-based overlays.

Between 2021 and 2024, the ETF reflected periods of equity market volatility, shifts in monetary policy, and changing investor preferences between growth and income strategies, while maintaining liquidity consistent with its structure as a listed ETF.