DailyDelta Rolls Out ETFs For Daily Nasdaq-100 Index Movements

DailyDelta officially stepped into the ETF market with the launch of two new funds: the DailyDelta Q100 Upside Option Strategy ETF QUP and the DailyDelta Q100 Downside Option Strategy ETF QDWN.

With these ETFs, investors can track the Nasdaq-100 Index’s daily fluctuations while finding opportunities to profit from market movements in both directions.

Investors seeking gains from daily Nasdaq-100 downturns can find QDWN ideal as it follows the performance of the top 100 nonfinancial Nasdaq-listed companies. The fund seeks to replicate the negative performance of the index while restricting daily losses to a maximum of 10% of its net asset value.

The fund gains from Nasdaq-100 declines through its primary investment in cash-settled index put options which deliver cash instead of stocks. To protect against the rapid expiration of its put options which can last as little as one trading day, QDWN keeps about 90% of its assets invested in short-term U.S. Treasury securities.

Also Read: Short-Term Bond ETFs See Record Inflows Amid Market Turmoil: 3 Funds That Led The Surge

QUP targets investors seeking daily performance benefits from Nasdaq-100 index movements. The fund aims to boost index gains while ensuring daily losses do not exceed 10%. It achieves this goal by purchasing cash-settled call options, which supply leveraged exposure to upward movements in the index.

QUP and QDWN both come with an expense ratio of 1.35%.

The ongoing concern about market volatility is leading to an increased demand for investment strategies that effectively manage daily fluctuations. DailyDelta already registered several new ETFs targeting the Russell 2000 Index and S&P 500 Index in a recent filing. The upcoming funds include: