Defiance Nasdaq 100 LightningSpread Income ETF

Key Statistics

Historical Performance

Total return including reinvested distributions, from adjusted closing prices.

Top Holdings

Top 6 holdings as of Feb 28, 2026 · source: SEC N-PORT. Full holdings & prospectus →

About QLDY

TheFund 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 designedto generate daily income that the Fund intends to distribute twice weekly. The Fund’s strategy also seeks to provide longexposure to the price return of the Nasdaq 100 index (the “Index”). To implement this strategy, the Fund will utilizeput and call options that reference the Index or on passively managed ETFs that seek to track the Index’s performance (“IndexETFs”). For simplicity, a reference to the “Index” includes Index ETFs. Additionally, the Fund will invest inshort-term U.S. Treasury securities and money market funds to enhance income from uninvested cash. LightningSpread™Strategy TheFund’s synthetic “LightningSpread™” strategy involves a combination of:    (i) buying long-dated, deep in-the-money (Deep-ITM) call options on the Index, and   (ii) writing (selling) put spreads on the Index with zero days to expiration (“0DTE”), meaning the put spread expires at the end of the same day it is sold. TheFund purchases long-dated, Deep-ITM call options on the Index to establish “synthetic” long exposure to the Index.Deep-ITM call options are those where the current Index level is substantially above the strike price, providing the Fund withprice exposure to the Index’s returns, similar to owning the Index’s securities directly. These options typicallyhave a high delta, meaning their value generally moves nearly one-for-one with changes in the Index. However, their price maynot always fully replicate the Index’s movement prior to expiration, which can result in tracking differences. The potentialupside of this synthetic long position is uncapped. TheFund aims to generate income by selling put spreads, which involve selling a put option at a higher strike price while simultaneouslypurchasing a put option at a lower strike price. Each business day, typically at market open or shortly thereafter, the Fund executesa put spread on the Index. As the seller of the put spread, the Fund receives a premium (payment from the buyer), contributingto its income. However, this strategy also exposes the Fund to increased downside risk if the Index price falls between thetwo strike prices of the put spread. For further details, refer to the section “Income and Indirect Participation inIndex Performance” below. Incomeand Indirect Participation in Index Performance TheFund primarily generates income by selling at- or near-the-money zero days-to-expiration (0DTE) put spreads on a daily basis.The premiums received from these transactions contribute to the Fund’s income, but the strategy also introduces downsiderisk. Specifically, if the Index price declines to a level between the strike prices of the sold put spread, the Fund incurs losses.When this occurs, the loss incurred in the Fund’s option strategy combined with the decline in the Fund’s long syntheticIndex exposure through its deep in-the-money (Deep-ITM) call options creates a leveraged downside exposure between the strikesof the sold put option. Forexample, excluding the premium received from the sold put spread:    ● Suppose the Fund holds a Deep-ITM call option and sells a put spread with strike prices 2% apart.   ● If the Index declines by 3% in a single day and trades at or below the lower strike of the put spread, the Fund’s net return will be -5%.   ○ This includes a 3% loss from its long call exposure.   ○ Additionally, the Fund incurs a 2% loss from the sold put spread, as the Fund is effectively exposed to twice the downside risk when the Index falls between the put spread’s strike prices. Ifthe Index price remains above the higher strike price of the put spread at expiration, the Fund retains the full premium fromselling the put spread. Additionally, the Fund benefits from the appreciation of its Deep-ITM call position, which closely tracksthe Index’s gains without an upside cap. However, because 0DTE options are highly sensitive to intraday market volatility,price swings during the trading day can cause sharp changes in the value of the put spread before it expires, increasing the potentialfor sudden losses. However,when the Index price falls within the strike price range of the put spread, the Fund’s losses are magnified. This occursbecause:    ● The sold put spread begins to lose value as the Index declines.   ● Simultaneously, the Fund’s Deep-ITM call position decreases in value, mirroring the Index’s decline. Ifthe Index price falls below the lower strike price of the put spread, the put spread reaches its maximum loss. Meanwhile, theDeep-ITM call position continues to decline, creating further losses in the Fund. While the premiums received from selling putspreads help offset some losses, the Fund remains significantly exposed to downside risk when the Index declines.  Pleasesee the prospectus section titled “Additional Information About the Funds” for more information about the Fund’soptions strategies. AdditionalFund Attributes TheFund will seek to provide income twice weekly in the form of cash distributions. TheFund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments (such asoptions contracts) that use the Index as the reference asset. TheFund is classified as a “non-diversified” investment company under the 1940 Act, which means that the Fund may investa high percentage of its assets in a fewer number of issuers. TheFund’s investment exposure will be concentrated in (or substantially exposed to) the same industry or group of industriesto the extent the Index is so concentrated. Thereis no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all ofits investment. Noneof the Fund, the Trust, the Adviser, or their respective affiliates makes any representation to you as to the performance of theIndex. THEFUND, TRUST, AND ADVISER ARE NOT AFFILIATED WITH, NOR ENDORSED BY, THE INDEX. IndexOverview: The Nasdaq 100 Index is a benchmark index that includes 100 of the largest non-financial companies listed on theNasdaq Stock Market, based on market capitalization. This makes it a large-cap index, meaning its constituents have a high marketvalue, often in the billions of dollars. TheIndex includes companies from various industries but is heavily weighted towards the technology sector. This reflects the Nasdaq’shistoric strength as a listing venue for tech companies. Other sectors represented include consumer discretionary, health care,communication services, and industrials, among others. Interms of volatility, like all stock indices, the Nasdaq 100 experiences daily price movements and can be significantly volatileat times. This is often driven by macroeconomic factors, market sentiment, and financial results or news from its large constituents.Historical periods of significant volatility include the dot-com bubble burst around 2000 and the global financial crisis of 2007-2008,among other events. However, the specific degree of volatility can vary and is subject to change based on market conditions.

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