New actively managed ETF seeks tax-efficient income and long-term capital appreciation through Nasdaq-100 exposure and an options-based overlay strategy
ATLANTA, Ga., October 23, 2026 /Business Wire/ – Liquid Strategies announced the launch of the Overlay Shares Nasdaq 100 Income ETF (OVQ), an actively managed ETF that combines Nasdaq-100 equity exposure with a put-spread options strategy designed to seek to generate income. This is the latest addition to Liquid Strategies’ longstanding experience managing option overlay strategies across the Overlay Shares ETF suite since 2019.
The fund is managed with the goal of providing relatively stable monthly distributions and targets, but does not guarantee, a 12% annual distribution rate. A significant portion of the Fund’s distributions may be a return of capital, which may lead to erosion of net asset value over time. The distribution rate is not the Fund’s yield or total return.
“Many income-focused equity ETFs rely on covered-call strategies that may limit participation in market advances,” said Eric McArdle, Head of Advisor Solutions at Liquid Strategies. “OVQ was designed with a different approach. By combining Nasdaq-100 exposure with a put-spread overlay strategy, we seek to provide investors with an income-oriented solution while preserving upside potential.”
The put-spread strategy may result in losses if the Nasdaq-100 declines, and the Fund remains subject to the downside risk of its equity exposure.
The use of qualifying index options may also affect the tax character of the Fund’s distributions. Certain of the index options in which the Fund invests are expected to qualify as Section 1256 Contracts under the Internal Revenue Code, which are generally marked-to-market and taxed at a blended rate of 60% long-term and 40% short-term capital gains, regardless of holding period. A portion of the Fund’s distributions may consist of return of capital, which reduces a shareholder’s cost basis and is not the same as tax-free income. Liquid Strategies does not provide tax advice; investors should consult their tax advisor.
In managing OVQ, the adviser considers factors such as volatility, option pricing, time to expiration and potential risk and return, and may adjust the put-spread structure in response to changing market conditions.
The launch also comes during a period of growth for Liquid Strategies. Founded in 2013, the Atlanta-based, employee-owned investment manager has $2.189 billion in AUM across ETFs, interval funds and separate accounts as of October 16, 2026. AUM and is not indicative of performance and may fluctuate over time. The firm focuses primarily on options-based investment strategies and serves as adviser to the Overlay Shares ETFs.
Before investing, carefully consider the Fund’s objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus available at www.lsfunds.com/funds or 1-800-632-4027. Read the prospectus carefully before investing.
The Fund invests in options that derive their performance from the performance of the Nasdaq-100® Index. Selling (writing) and buying options are speculative activities and entail greater than ordinary investment risks. The Fund's use of put options can lead to losses because of adverse movements in the price or value of the underlying asset, which may be magnified by certain features of the options. When selling a put option, the Fund will receive a premium; however, this premium may not be enough to offset a loss incurred by the Fund if the price of the underlying asset is below the strike price by an amount equal to or greater than the premium. Purchased put options may expire worthless and the Fund would lose the premium it paid for the option. The Fund may lose significantly more than the premiums it receives in highly volatile market conditions.
The Fund will invest in short term put options which are financial derivatives that give buyers the right, but not the obligation, to sell (put) an underlying asset at an agreed-upon price and date. The Fund's use of options may reduce the Fund's ability to profit from increases in the value of the underlying asset. The Fund could experience a loss or increased volatility if its derivatives do not perform as anticipated or are not correlated with the performance of their underlying asset or if the Fund is unable to purchase or liquidate a position.
Equity Securities Risk. Investment involves risk. Principal loss is possible.
Targeted Distribution Rate Risk. The Fund seeks to achieve a targeted distribution rate. There can be no assurance, and there is no guarantee, that the Fund's investments will be able to achieve or support the targeted distribution rate.
Distributed by Foreside Fund Services, LLC, which is not affiliated with Liquid Strategies.
Caitlin McCarthy
Media Relations Specialist
404-387-5021
cmccarthy@lsfunds.com