At a glance
KONG charges 0.89% a year, above the 0.55% average of the 4 funds most like it (the most expensive of 5). It has $21.7M in assets, the 2nd largest of that group; it paid 0.33% of its price in distributions over the past 12 months, annual. Over the past year it returned +8.3% with distributions reinvested (S&P 500: +11.5%), 2nd of those 5 funds; over three years it returned +11.3% a year. At its worst it fell 17.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 13 months after the low. Its ten largest positions make up 41.8% of the fund, out of 34 in all.
The short version
Formidable Fortress ETF (KONG) is an actively managed portfolio of about 30 large and mid-sized companies chosen for low debt, steadier prices, dividends and high profitability. It adds options: calls written on some holdings bring in cash that helps pay for put options on an S&P 500 fund, which aim to cushion market drops. At 0.89% a year, it costs more than any of the similar funds compared here, which average 0.55%.
Price history
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KONG +8.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KONG official prospectus, to Dec 31, 2025 | — | +6.62% | — | — | — | +5.13% |
| KONG price data to Oct 27, 2026 | +8.0% | +8.3% | +11.3% | +6.4% | — | +5.7% |
- Over the year to Oct 27, 2026, KONG returned +8.3%, 2nd of 5 among similar funds.
- Its 5-year annualized return was +6.4%.
- Its worst full calendar year was 2022 (-9.6%); its best was 2023 (+12.7%).
- The deepest fall in its price history was 20% (Jul 30, 2021 to Jun 16, 2022), recovered by Feb 23, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.0% | — |
| 2025 | +6.5% | +6.62% |
| 2024 | +9.7% | +9.32% |
| 2023 | +12.7% | +12.76% |
| 2022 | -9.6% | -9.48% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14.6% over that stretch · deepest drop along the way 17%, back to its old high 13.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.1100 | -50.0% |
| 2024 | $0.2200 | +22.2% |
| 2023 | $0.1800 | +50.0% |
| 2022 | $0.1200 |
What's inside
As of Jun 30, 2026, the fund held 34 securities; the ten largest made up 41.76% of assets.
| Holding | Weight | |
|---|---|---|
| FASTENAL COMPANY | 5.24% | |
| SERVICENOW, INC. | 5.04% | |
| MICROSOFT CORPORATION | 4.77% | |
| META PLATFORMS, INC. | 4.41% | |
| F5, INC. | 4.21% | |
| TEXAS PACIFIC LAND CORPORATION | 3.78% | |
| SYNOPSYS, INC. | 3.65% | |
| EMCOR GROUP, INC. | 3.57% | |
| NVIDIA CORPORATION | 3.56% | |
| INTERACTIVE BROKERS GROUP, INC. | 3.53% | |
| SNAP-ON INCORPORATED | 3.53% | |
| PUBLIC STORAGE. | 3.02% | |
| PULTEGROUP, INC. | 3.02% | |
| ALPHABET INC. | 2.92% | |
| ARISTA NETWORKS, INC. | 2.85% |
By country
United States 97.25%By asset type
Stocks 97.25%By sector
Sectors of the companies held, for the 64.3% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +4.17%, +1.94%, -0.87%.
How it works
KONG is actively managed and tracks no index, so its managers decide what to own and how much. Formidable Asset Management and sub-adviser Tidal Investments combine number-based screens with company research. They look for companies worth over $10 billion that show one or more of four traits: lower debt; lower beta (smaller price swings than peers); a record of dividends, ideally rising; and quality, meaning higher return on equity, operating margins and earnings growth.
Because it is a non-diversified fund, it can hold fewer, larger positions. It targets about 30 stocks. As of June 30, 2026, it held 34, and the top 10 made up 41.8% of assets, led by Fastenal (5.2%), ServiceNow (5.0%) and Microsoft (4.8%). US stocks were 97% of assets. Portfolio turnover (the share of holdings replaced in a year) was 24.85%.
The fund may also write covered calls. That means it gives another investor the right to purchase a stock it owns at a set price, collecting cash called a premium but giving up gains above that price. It does this mostly when a stock's expected swings are high or the stock nears the managers' exit target. Premiums help pay for the hedge, usually put options on SPY, an S&P 500 fund. These puts gain value when SPY falls. Derivatives can create economic leverage, meaning exposure above the fund's assets.
What it really costs
- KONG charges 0.89% a year, versus an average of 0.55% for the similar funds below (5th of 5, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $91 in the first year and $1,096 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KONG | $91 | $284 | $493 | $1,096 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
Its beta of 0.69 over the year to October 27, 2026, shows it moved less than the market, but a concentrated portfolio of about 30 stocks and a 0.89% fee fit a small slice better than a core position.
KONG, launched in July 2021, offers hedged stock exposure but has no record in the 2008 or 2020 crashes. In the 2022 bear market it fell 17% from January 3 to June 16, 2022, then took about 13 months to recover. Its deepest drop, 20% from its July 2021 high, wasn't made up until February 23, 2024, about 20 months after the low. Its worst calendar year was 2022, at -9.48%. Withdrawals in that stretch would have meant cashing in shares below their earlier high.
It pays little income: the yield was 0.33% as of October 27, 2026, paid once a year. It's also pricey at 0.89% a year, versus a 0.55% average for similar funds. In the SEC's standard $10,000 example, costs reach $1,096 over 10 years. Past results don't predict future ones, and a plan needs to consider the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a hand-picked mix of about 30 large and mid-sized, mostly US companies screened for low debt, steadier prices and strong profitability.
- Those wanting stock exposure with an SPY-put hedge; its beta (market sensitivity) was 0.69 over the year to October 27, 2026.
- Investors focused on long-term growth rather than income, who can accept drops like the 20% decline that took about 20 months to recover.
Look elsewhere if
- Cost-conscious investors: the 0.89% expense ratio is the highest among the similar funds compared here, which average 0.55%.
- Anyone needing steady income: the yield was 0.33% as of October 27, 2026, and the fund pays just once a year.
- Those wanting broad diversification or a larger fund: it held just 34 stocks and $21.7 million in net assets as of June 30, 2026.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| KONG this fund | — | 0.89% | $21.7M | +8.3% | +11.3% |
| QHDG Innovator Hedged Nasdaq-100 ETF | 18% | 0.79% | $3.0M | +1.1% | — |
| QRMI Global X NASDAQ 100 Risk Managed Income ETF | 17% | 0.6% | $14.3M | +5.1% | +9.2% |
| QCLR Global X NASDAQ 100 Collar 95-110 ETF | 17% | 0.25% | $3.3M | -0.6% | +15.2% |
| IQQQ ProShares Nasdaq-100 High Income ETF | 16% | 0.55% | $406.8M | +9.8% | — |
Questions investors ask
What does KONG ETF invest in?
KONG invests in about 30 large and mid-sized companies, defined as those worth over $10 billion. They are chosen for traits such as lower debt, steadier prices, dividends and high profitability. As of June 30, 2026, it held 34 stocks, with 97% of assets in US companies. The largest were Fastenal (5.2%), ServiceNow (5.0%), Microsoft (4.8%), Meta Platforms (4.4%) and F5 (4.2%). It also held 16 derivative positions, including put options on SPY and calls written on Meta.
Does KONG pay monthly dividends like covered call ETFs?
No. KONG pays once a year, and the payout is small: the trailing yield, based on the past year's payouts, was 0.33%, or $0.11 per share, as of October 27, 2026. Its goal is long-term capital appreciation, not income. It writes covered calls (trading away some upside for cash) only selectively, and those premiums help offset the cost of its SPY put hedge. Option-related payouts are usually taxed as ordinary income, not as qualified dividends.
What is KONG's expense ratio?
KONG's expense ratio, the yearly cost taken from fund assets, is 0.89%, per its prospectus filed July 29, 2026. All of it is management fee, with no waiver. That's the highest among the similar funds compared here, which average 0.55%; QCLR, for example, charges 0.25%. In the SEC's standard example, $10,000 invested with a 5% yearly return would cost about $91 after one year, $284 after three, $493 after five and $1,096 after 10, with shares cashed in at the end of each period.
How has KONG performed since launch?
KONG has produced moderate returns, and 2022 was its only losing full calendar year. Per its prospectus, it returned 5.13% a year from its July 2021 launch through December 31, 2025. Yearly results were -9.48% in 2022, 12.76% in 2023, 9.32% in 2024 and 6.62% in 2025. Measured from market prices, it returned 11.3% a year over three years and 6.4% a year over five years through October 27, 2026. Quarterly results ranged from -7.91% to 8.46%, both in 2022.
What's the difference between KONG and QHDG?
The main difference is what they own: only about 18% of their holdings overlap, though both hedge stock exposure. KONG is an actively managed portfolio of about 30 stocks with selective covered calls and SPY puts. QHDG, the Innovator Hedged Nasdaq-100 ETF, is built around the Nasdaq-100. QHDG costs less, 0.79% versus 0.89%, but returned 1.1% over the year to October 27, 2026, versus 8.3% for KONG. QHDG is also smaller, with about $3.0 million in net assets as of April 30, 2026.