At a glance
QQQT charges 1.2% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $49.1M in assets, the 8th largest of that group; it paid 20.59% of its price in distributions over the past 12 months, monthly. Over the past year it returned +12.9% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds.
The short version
Defiance Nasdaq 100 Income Target ETF (QQQT) is an actively managed fund. It holds shares of the Invesco QQQ Trust, which tracks the Nasdaq 100 Index, and sells call option spreads on that index every day to bring in cash. It aims to pay out about 20% of its net asset value a year in monthly distributions. Part of that can be a return of investors' own money, and the fund costs 1.20% a year.
Price history
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QQQT +12.9% 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 | |
|---|---|---|---|---|---|---|
| QQQT price data to Oct 27, 2026 | +16.5% | +12.9% | — | — | — | +15.0% |
- Over the year to Oct 27, 2026, QQQT returned +12.9%, 1st of 8 among similar funds.
- Its worst full calendar year was 2025 (+14.1%); its best was 2025 (+14.1%).
- The deepest fall in its price history was 22.4% (Dec 16, 2024 to Apr 8, 2025), recovered by Jun 30, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +16.5% |
| 2025 | +14.1% |
| 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 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.6500 | |
| 2025 | $3.7100 |
What's inside
As of Aug 31, 2026, the fund held 1 securities; the ten largest made up 99.83% of assets.
| Fund held | Weight | |
|---|---|---|
| Invesco QQQ Trust Series 1 | 99.83% |
By country
United States 99.83%By asset type
Stocks 99.83%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $7.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.07%, -6.00%, +4.32%.
How it works
QQQT is an actively managed ETF built to pay current income. Rather than owning stocks directly, it holds ETFs that track the Nasdaq 100 Index, which covers 100 of the largest non-financial companies listed on the Nasdaq. As of August 31, 2026, 99.8% of net assets sat in one fund: the Invesco QQQ Trust (QQQ).
Each day, the fund sells a “call spread” on the index. A call option pays off if the index ends above a set level, the strike. The fund sells a short-dated call near the index's level, buys one at a higher strike, and keeps the net premium. Options settle in cash. The catch: the fund gives up index gains between the two strikes. Above the upper strike, the fund shares in gains again. Losses are not capped, and premiums may not cover them.
The adviser aims for net premiums of about 1.7% a month, which annualizes to a payout target of about 20% of net asset value (NAV, the per-share value of the holdings). The target is not a promise, a yield or a total return. Payouts above the fund's earnings shrink NAV and may count as return of capital: investors' own money handed back. A lower NAV means smaller future payouts.
What it really costs
- QQQT charges 1.2% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.85% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $122 in the first year and $1,455 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| QQQT | $122 | $381 | $660 | $1,455 |
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.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
Its stated goal is current income, paid monthly, but that income comes from a concentrated Nasdaq 100 position with the index's full downside risk.
QQQT can add a large monthly cash flow. Its trailing 12-month yield was 20.59%, or $3.60 per share, as of October 27, 2026. Some of that may be return of capital, and the fund launched on June 20, 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its deepest drop was 22.4%, from December 16, 2024 to April 8, 2025. It recovered by June 30, 2025, about 2.7 months later. Its only full calendar year, 2025, returned 14.1%. Its one-year beta of 1.34 means it moved more than the broad market. A retiree who sells shares or depends on the payouts in a falling market could lock in losses as net asset value shrinks. Costs run 1.20% a year, or $122 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income-focused investors who want large monthly payouts tied to the Nasdaq 100 and accept that payouts vary and may include return of capital.
- Investors already comfortable with heavy technology exposure through the Invesco QQQ Trust who want an options layer that turns some upside into cash.
- Holders who can hold through drops like the 22.4% fall from December 2024 to April 2025 without needing to sell.
Look elsewhere if
- Investors who want their invested principal to hold steady, since payouts above earnings reduce net asset value and future distributions.
- Cost-conscious investors: the 1.20% expense ratio ranked 8th of 8 against a group of buffer ETFs averaging 0.86%.
- Anyone wanting a long track record or downside protection: the fund launched in June 2024, and premiums only partly offset index losses.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| QQQT this fund | 1.2% | $49.1M | +12.9% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does QQQT pay monthly dividends?
Yes, QQQT aims to pay distributions every month, though the prospectus says no payout is guaranteed in any given month and amounts will likely vary a lot. Its trailing 12-month payout was $3.60 per share, a 20.59% yield, as of October 27, 2026. Most of the money comes from option premiums, not stock dividends. Part of it may be classed as return of capital, which hands back some of an investor's own money.
Is QQQT's 20% yield real?
The payouts are real cash, but the 20% figure is a target, not a promise or a total return. The fund aims to collect about 1.7% a month in option premiums, roughly 20% of net asset value a year. If its returns fall short, the payouts shrink net asset value. A lower net asset value then means smaller dollar payouts later. The prospectus warns that repeated distributions may significantly erode the fund's value.
What's the difference between QQQT and QQQ?
QQQ tracks the Nasdaq 100 Index directly, while QQQT holds QQQ and sells daily call spreads on that index. As of August 31, 2026, 99.8% of QQQT's assets sat in the Invesco QQQ Trust. The option sales turn some of the index's upside into monthly cash. QQQT gives up gains between its two strike prices, takes the index's full losses minus premiums, and charges a 1.20% expense ratio.
How much does QQQT cost?
QQQT's expense ratio is 1.20%, including a 0.85% management fee, per its prospectus filed December 22, 2025. Under the SEC's standard example, with $10,000 invested and a 5% yearly return, costs would total about $122 after one year, $381 after three, $660 after five and $1,455 after ten. That is above the 0.86% average of a group of buffer ETFs, though those funds follow a different, defined-outcome strategy.
How are QQQT distributions taxed?
QQQT's income comes mostly from selling options, and that income is usually taxed as ordinary income rather than at the lower qualified dividend rate. Some distributions may also be classed as return of capital. Return of capital is generally not taxed when paid, but it lowers an investor's cost basis, which can mean a larger taxable gain when the shares are sold. Holding the fund in a tax-advantaged account changes how this works.