Tuttle Capital Management (TCM), a leading issuer of thematic and rules-based ETFs, today announced the launch of the Tuttle Capital Innovation 100 Income and Hedge ETF (CBOE: QQDH), an actively managed ETF that seeks current income and, secondarily, long-term capital appreciation.
QQDH holds exposure to the Nasdaq-100® Index mainly through the Invesco QQQ Trust (QQQ), with at least 80% of net assets in QQQ or options that use QQQ or the index as a reference asset. It does not write call options over that exposure, so the exposure is not capped at a covered-call strike.
To seek income, the Fund sells put credit spreads.The Fund seeks to provide
Nasdaq-100 exposure while employing options strategies designed to generate income and manage risk. There is no guarantee that distributions will be made.
Each business day, the Fund seeks to put on a hedge using options that expire the next trading day. The hedge is designed principally for short, sharp declines. It may not help in a gradual decline and can add to losses in a modest one.
The Fund's total annual operating expense ratio is 0.95% and lists on [Exchange] under the ticker QQDH.
Riverside, Connecticut--(Newsfile Corp. - October 23, 2026) - Tuttle Capital Management, LLC, a leading issuer of thematic and rules-based ETFs, today announced the launch of the Tuttle Capital Innovation 100 Income and Hedge ETF ([Exchange]: QQDH). QQDH is an actively managed ETF that combines exposure to the Nasdaq-100® Index, through the Invesco QQQ Trust (QQQ) and/or options, with two separate options overlays: an income strategy built on put credit spreads and a daily hedging strategy built on short-dated put ratio backspreads.
"Many income ETFs generate income by writing calls, which can cap the upside of what they hold," said Matthew Tuttle, Chief Executive Officer of Tuttle Capital Management and portfolio manager of the Fund. "QQDH takes a different route: we don't write calls over the Nasdaq-100 exposure, we seek income with put credit spreads instead, and we reset a hedge every day. Each of those pieces can lose money, and investors should understand all three before they own the fund."
How QQDH Is Built
QQDH has three parts: long exposure to the Nasdaq-100® Index, an income overlay, and a daily hedge.
The Long Exposure
QQDH holds its exposure mainly through the Invesco QQQ Trust (QQQ). It can also build that exposure with options, by buying a call and selling a put with about the same strike price and expiration date. That combination generally rises and falls with QQQ, though not identically.
The Fund does not write call options over this exposure, so the exposure is not capped at a
covered-call strike. That does not make QQDH a substitute for owning QQQ. The income and hedging overlays can lose money, so the Fund's return may be materially less than the Nasdaq-100's in rising markets.
The Income Overlay
To seek current income, the Fund sells put credit spreads. It sells a put option and buys a put option with a lower strike price and the same expiration date.
The net premium is the most a spread can earn. The most it can lose is the difference between the two strike prices, less that premium. The spreads can lose money, including at the same time the long exposure is falling.
The Daily Hedge
Each business day, generally in the afternoon, the Fund seeks to put on a hedge using options that expire the next trading day. The hedge is usually a put ratio backspread. The Fund sells one put near the current level of QQQ, buys one put at a lower strike price, and buys another at a still-lower strike price.
If the Nasdaq-100 drops sharply in a day, to a level well below the lowest put the Fund has bought, those puts are expected to gain value. That may offset a portion of the additional losses on the long exposure.
The hedge has limits. It is reset every day and is designed principally for short, sharp declines. It may not help in a gradual, multi-day decline. If the market falls only modestly and ends near the option strikes, the hedge can lose money and leave the Fund with a larger loss than the long exposure alone. There is no guarantee that it will limit losses to any specified amount.
How It Works
QQDH is an actively managed, non-diversified ETF. The Adviser selects expirations, strike prices, widths and position sizes for the options based on prevailing volatility, liquidity, market conditions and the Fund's risk limits. The Fund uses exchange-traded options and Flexible Exchange® (FLEX) options listed on regulated U.S. exchanges, and holds short-term U.S. Treasury securities and money market funds, which it uses to seek additional yield on cash not invested in options. Because the Fund expects to buy and sell options frequently, including every day for the hedge, it expects high portfolio turnover and significant transaction costs, which can reduce returns. The Fund does not seek to take temporary defensive positions during periods of adverse market conditions.
The Fund seeks to provide weekly distributions. There is no guarantee that the Fund will make a distribution in any given week, and distribution amounts are likely to vary, in some cases greatly, from one distribution to the next. Distributions are intended to include income generated by the Fund's strategy but may also include a return of capital, which is not the same as investment income or capital gain and will reduce a shareholder's cost basis in Fund shares. The Fund's NAV will typically fall by the amount of a distribution on the ex-dividend date. Distribution rate is not the same as total return, and a stated or historical distribution rate should not be read as a projection of the Fund's future performance.
About the Nasdaq-100® Index
The Invesco QQQ Trust is an exchange-traded fund that seeks to track the performance of the Nasdaq-100® Index, which provides exposure to large-cap growth-oriented companies, primarily in the technology and consumer discretionary sectors, among others. The index is more concentrated in innovation- and technology-oriented companies than broader market indices, and it includes securities of non-U.S. issuers. An investment in QQDH is not an investment in QQQ or the Nasdaq-100 Index: the Fund's strategy is not intended to track the performance of its reference asset, and Fund shareholders are not entitled to dividends paid by QQQ or the index's component securities.
About Tuttle Capital Management
Tuttle Capital Management is a leading issuer of thematic ETFs that allow investors to capitalize on shifting market dynamics. The firm is known for its active management approach and its ability to construct portfolios around emerging trends, spanning actively managed thematic equity ETFs, the Income Blast series of weekly-distribution ETFs, and rules-based index ETFs developed in collaboration with third-party index providers. The Tuttle Capital Innovation 100 Income and Hedge ETF adds an options-based income and hedging strategy to that lineup. For more about Tuttle Capital's full suite of funds, visit www.tuttlecap.com.
Important Disclosures
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Tuttle Capital Innovation 100 Income and Hedge ETF (QQDH) before investing. For a prospectus with this and other information about the Fund, please visit www.tuttlecap.com or call (833) 759-6110. Please read the prospectus carefully before investing.
An investment in the Fund involves risk, including the possible loss of the entire principal amount invested. The Fund is newly organized and has no operating history. The Fund is non-diversified, which means it may invest a greater percentage of its assets in a smaller number of issuers or instruments than a diversified fund. The Fund is not a complete investment program, and an investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
The Fund is subject to Options Risk, Short-Dated Options and Daily Hedge Risk, Put Credit Spread Risk, Put Ratio Backspread and Loss-Zone Risk, Short Put and Assignment Risk, Gamma, Volatility and Path-Dependency Risk, Distribution and Return of Capital Risk, Derivatives Risk, FLEX Options Risk, Liquidity Risk, Volatility Risk, Transaction Cost Risk, Market Risk, Equity Securities Risk, Non-Diversification Risk, Active Management Risk, New Fund Risk, and the standard ETF Risks, among others.
Short-Dated Options, Daily Hedge and Put Ratio Backspread Risk. The Fund's daily hedge uses options that generally expire on the next trading day, which are highly sensitive to changes in the price and implied volatility of the reference asset and may change in value rapidly. The hedge is designed primarily for a sharp decline over a short period and may not offset losses from a gradual decline composed of a series of smaller daily losses. If the reference asset declines modestly and finishes between or near the hedge strikes, the written put may lose more than the purchased puts gain, and the hedge may increase the Fund's loss compared with an unhedged investment in the reference asset. The hedge may be established for a net debit, may expire worthless, may not be in place during all market periods, and may be affected by overnight gaps, trading halts and limited liquidity. There is no assurance that the hedge will be effective or that it will limit losses to any specified percentage.
Put Credit Spread Risk. A put credit spread has a limited maximum profit equal to the net premium received and a limited maximum loss generally equal to the difference between the strike prices less that premium. During a market decline, the Fund may incur losses simultaneously on its long exposure and its put credit spreads, and repeated losses on put credit spreads may reduce NAV even when the Fund continues to make distributions. Premium income may be insufficient to offset losses on the spreads, losses on the long exposure, hedging costs, transaction costs or Fund expenses. Although the Fund does not write call options over its long exposure, option losses and expenses may materially reduce the Fund's participation in gains of the reference asset, and the Fund may underperform the reference asset.
Distribution and Return of Capital Risk. There is no guarantee that the Fund will make a distribution in any given week, and distribution amounts are likely to vary greatly from one distribution to the next. All or a portion of a distribution may represent a return of capital, which is not the same as investment income or capital gain and will reduce a shareholder's cost basis in Fund shares, which may result in a higher capital gain or lower capital loss upon sale. The Fund's distribution rate should not be viewed as a substitute for, or a projection of, the Fund's total return.
Market and Equity Securities Risk. The Fund's performance is closely tied to the performance of QQQ and the Nasdaq-100 Index, which is more heavily concentrated in technology and growth-oriented companies than broader market indices. The Fund may therefore be more susceptible to risks affecting those sectors, including rapid technological change, product obsolescence, regulatory developments, competitive pressures, and shifts in investor sentiment toward growth-oriented companies.
Transaction Cost Risk. Because the Fund expects to enter into and close options positions on a daily basis, it will incur high transaction costs, which may negatively affect the Fund's performance and may result in higher taxable distributions.
ETF shares may trade at a premium or discount to NAV. There can be no guarantee that an active trading market for Fund shares will develop or be maintained. The names and marks referenced in this release are the property of their respective owners, and the Fund is not sponsored or endorsed by those owners.
Distributor: Foreside Fund Services, LLC
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/320597
Source: Tuttle Capital Management