MutualFundWire.com: Defiance, Tidal, and Zega Partner For a 5th ETF, And ...

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Thursday, March 7, 2024

Defiance, Tidal, and Zega Partner For a 5th ETF, And ...

The folks at two Sunshine State boutiques and a Midwestern ally are teaming up again to launch an actively managed ETF that combines equity indexing with an options overlay to generate income. And the new fund itself appears to be part of a planned trio.

Sylvia M. Jablonski Kampaktsis
Defiance ETFs
CEO, Chief Investment Officer

This morning, the Defiance ETFs [profile] team unveiled the debut of the Defiance S&P 500 Income Target ETF (SPYT on the NYSE Arca, Inc.). And they also filed to launch two more ETFs: the Defiance Nasdaq 100 Income Target ETF (QQQT on the Nasdaq) and the Defiance R2000 Income Target ETF (IWMT on the NYSE Arca). SPYT is a series of Tidal Trust II.

Miami-based Defiance Group Holdings LLC and Palm Beach Gardens, Florida-based ZEGA Financial, LLC serve as sponsors of SPYT, and ZEGA also serves as subadvisor. Milwaukee, Wisconsin-based Tidal Investments LLC (fka Toroso Investments) serves as investment advisor. And Tidal, Zega, and Defiance will fill the same roles for IWMT and QQQT, which also be a series of the same trust.

SPYT's inception date was March 7, and it comes with an expense ratio of 94 basis points. QQQT will cost 105bps, while IWMT will cost 104bps.

The PM team for SPYT (and for IWMT and QQQT) includes four people: Mick Brokaw, chief compliance officer and managing director of trading at ZEGA; Qiao Duan, portfolio manager and trader at Tidal; Jay Pestrichelli, co-founder and CEO of ZEGA; and Charles Ragauss, PM and head of trading at Tidal.

The idea behind SPYT is to combine equity index investing (through underlying investments in third-party, passively managed S&P 500 ETFs) with an options overlay strategy (specifically selling daily credit call spreads on the S&P 500) to generate annual income of 20 percent. IWMT and QQQT are designed to work similarly, but starting from different indexes: the Russell 2000 and the Nasdaq 100, respectively.

SPYT is the fifth ETF that the ZEGA, Tidal, and Defiance teams have rolled out together in the past six months.

SPYT, QQQT, and IWMT's other service providers include: Cohen & Company, Ltd. as independent accounting firm; Foreside Fund Services, LLC as distributor; Sullivan & Worcester LLP as counsel; Tidal ETF Services LLC as administrator; U.S. Bancorp Fund Services, LLC (dba U.S. Bank Global Fund Services) as fund accountant, sub-administrator, and transfer agent; and U.S. Bank National Association as custodian.

Printed from: MFWire.com/story.asp?s=67139

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