At a glance
QDWN charges 1.35% a year. It has $1.0M in assets. Its ten largest positions make up 64.0% of the fund, out of 22 in all.
The short version
DailyDelta Q100 Downside Option Strategy ETF (QDWN) is an actively managed fund from Kelly Intelligence that aims to gain on days the Nasdaq-100 falls. It keeps about 90% of assets in short-term Treasuries and spends up to 10% each day on put options, which pay off when the index drops. Unlike traditional inverse funds, it targets no fixed multiple, and daily premium losses can shrink its value even when the index declines over time.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| QDWN price data to — | — | — | — | — | — | — |
What's inside
As of Aug 31, 2026, the fund held 22 securities; the ten largest made up 64.04% of assets.
| Holding | Weight | |
|---|---|---|
| SPACEX | 15.33% | |
| Palantir Technologies Inc | 8.01% | |
| NVIDIA Corp | 6.20% | |
| Lumentum Holdings Inc | 5.94% | |
| Voyager Technologies Inc | 5.85% | |
| Kratos Defense & Security Solu | 5.26% | |
| Rocket Lab Corp | 4.47% | |
| Viasat Inc | 4.36% | |
| Mercury Systems Inc | 4.33% | |
| Coherent Corp | 4.30% | |
| Planet Labs PBC | 3.80% | |
| Micron Technology Inc | 3.48% | |
| Spire Global Inc | 3.47% | |
| AST SpaceMobile Inc | 3.42% | |
| BlackSky Technology Inc | 3.40% |
By country
United States 95.95%Switzerland 2.32%By asset type
Stocks 98.28%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $1.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -5.24%, -24.68%, +12.70%.
How it works
QDWN is actively managed, but it is built around the Nasdaq-100 Index, which holds the 100 largest non-financial companies listed on Nasdaq. Each trading day, the managers spend up to 10% of the fund's net asset value (NAV, the total value of its holdings) on Nasdaq-100 put options. A put option is a contract that pays off if the index drops below a set level, here near the index's level at purchase. The options are cash-settled, so any gains arrive as cash. Under normal conditions they expire daily.
The rest, roughly 90%, sits in short-term US Treasuries with an expected average duration (a gauge of interest-rate sensitivity) of about six months. The day's premium is the most the options can lose that day. On down days, the fund aims to gain more than the index lost. On flat or up days, the fund may lose up to that full premium. In stressed markets, the managers may use options lasting up to a week.
Because positions reset daily, returns over longer stretches depend on the order of daily moves. The fund targets no fixed multiple of the index, and the prospectus warns it can lose value over time even when the Nasdaq-100 falls, especially if the index swings sharply or rises often. Its options can also act like leverage, magnifying small index moves.
What it really costs
- QDWN charges 1.35% a year.
- Using the prospectus's standard example, $10,000 invested would cost about $137 in the first year and $— over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| QDWN | $137 | $428 | $— | $— |
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 prospectus says it is not designed to deliver inverse index returns beyond a single day and should not be used as a long-term substitute for an inverse Nasdaq-100 position.
QDWN launched on March 10, 2025, so it has no track record through earlier stock market crashes, and its prospectus filed September 24, 2026 shows no full calendar-year returns. The fund can spend up to 10% of its value on options each trading day and lose that entire premium when the Nasdaq-100 is flat or rising. It may gain on sharp down days, but premium losses on the days that follow can erode those gains, so it can't be relied on as a reserve to tap in a bad year for stocks. Its stated objective is capital appreciation, not income. The 1.35% expense ratio works out to $137 on a $10,000 investment after one year and $428 after three in the SEC's standard example.
Past results don't predict future returns, and a sound plan looks at the whole portfolio rather than any one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders wanting a one-day position on Nasdaq-100 declines, with each day's options loss capped at the premium spent, at most 10% of net assets.
- Experienced options users who understand how volatility, option prices and daily premium losses drive returns, and who watch positions every trading day.
- Investors seeking a brief hedge for Nasdaq-100-heavy holdings around a known event, who accept losing option premium on flat or rising days.
Look elsewhere if
- Long-term and retirement investors: the prospectus warns the fund can lose value over time even when the Nasdaq-100 declines.
- Anyone wanting a predictable inverse return: QDWN targets no fixed multiple, and each flat or rising day can cost up to 10% of net assets.
- Income seekers and cost-conscious investors: its objective is capital appreciation, and its 1.35% expense ratio comes on top of any daily premium losses.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Is QDWN good for a retirement portfolio?
Not by design. QDWN's prospectus says it is not meant to deliver the inverse of the Nasdaq-100's return over periods longer than one day and should not be used as a long-term substitute for an inverse position. Because it can spend up to 10% of its assets on put options each trading day, repeated losses can compound and shrink the fund, even when the index falls over the same stretch. It launched March 10, 2025, so its track record is short.
How does QDWN make money when the Nasdaq falls?
Through put options. Each trading day, QDWN spends up to 10% of its net asset value on cash-settled Nasdaq-100 put options set close to the index's level, usually expiring that same day. If the index drops, the puts gain value, and the fund aims to rise by more than the index fell. If the index is flat or rises, the puts can expire worthless and the fund can lose the premium it paid. The other roughly 90% sits in short-term US Treasuries.
What's the difference between QDWN and an inverse Nasdaq-100 ETF?
QDWN uses daily put options and targets no fixed multiple, while a traditional inverse ETF aims for a set daily result, such as the opposite of the index's return. With puts, each day's options loss is limited to the premium spent, up to 10% of net asset value, and down days can bring gains larger than the index's drop. The trade-off: QDWN can lose up to that full premium even on a flat day, when an inverse fund would barely move.
What is QDWN's expense ratio?
QDWN's expense ratio is 1.35%, made up entirely of its management fee, according to its prospectus filed September 24, 2026. In the SEC's standard example, a $10,000 investment earning 5% a year would cost about $137 over one year and $428 over three years. That fee is separate from the option premiums the fund spends each trading day, which can reach 10% of its net asset value and affect its returns rather than its expense ratio.
Can you lose all your money in QDWN?
Yes. The prospectus warns that investors could lose all of their money in the fund. Each trading day, QDWN may spend up to 10% of its net asset value on put options and lose the whole premium if they expire worthless. That loss limit applies to each day separately, based on the fund's value at the time, so it does not cap losses over weeks or months. A long run of flat or rising days for the Nasdaq-100 could steadily erode the fund.