Defiance Nasdaq 100 LightningSpread Income ETF

Frequently Asked Questions About QLDY

What does QLDY invest in?

The fund is an actively managed exchange-traded fund (“ETF”) that seeks current income and, secondarily, capital appreciation. The fund seeks to achieve its investment objectives by employing a “LightningSpread" strategy, which is designed to generate daily income that the fund manager intends to distribute twice weekly. The fund’s strategy also seeks to provide long exposure to the price return of the Nasdaq 100 index (the “index”). The fund is non-diversified.

What is the expense ratio of QLDY?

Defiance Nasdaq 100 LightningSpread Income ETF (QLDY) charges an expense ratio of 1.04%. This is the annual fee deducted from fund assets to cover management and operations.

What is QLDY's distribution yield?

QLDY's trailing-twelve-month yield is 22.85%, calculated from the sum of distributions over the past year divided by the current price.

How does QLDY's covered-call strategy work?

QLDY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is QLDY?

Defiance Nasdaq 100 LightningSpread Income ETF (QLDY) manages $56.6M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is QLDY actively managed or an index fund?

QLDY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.