TDAQ: 3 Months In, One Clear Leader
The chart below compares total return performance of TDAQ vs several peers with the Nasdaq 100 serving as a baseline for comparison.
Established Nasdaq-100 Covered Call Funds
JEPQ and QQQI are two of the most recognized covered call ETFs in the Nasdaq-100 space, serving as bellwethers for income-focused investors allocating to growth-oriented equities. IQQQ and QDTE represent the extension of the 0DTE and derivatives-heavy approach applied directly to the Nasdaq-100 index, making them relevant peers for evaluating TDAQ’s structure and outcomes.
Owns Actual Shares of QQQ
Like TDAQ, JEPQ and QQQI hold real equities as the underlying exposure to the Nasdaq-100 index. This provides direct participation in the tech-heavy index and keeps portfolio construction grounded in actual shares. In contrast, IQQQ and QDTE rely more heavily on option exposures rather than holding the full underlying basket, creating structural and risk-profile differences investors should be aware of.
Nasdaq-100 Based Covered Call Strategy
All listed peers operate income strategies tied to the Nasdaq-100. This makes the group directly comparable to TDAQ in terms of growth-oriented index exposure, tech concentration, and investor objectives around enhanced yield while staying invested in the Nasdaq-100 engine.
Comparable Tax Treatment (JEPQ & QQQI)
Because JEPQ and QQQI hold actual Nasdaq-100 stocks and write covered calls on top of that exposure, their tax characteristics align more closely with TDAQ. Funds like IQQQ and QDTE — which utilize more derivative-centric positioning — may produce different tax profiles, especially around return of capital, short-term gains, or option-driven distributions.
AUM & Market Adoption
JEPQ and QQQI have gathered notable AUM in the Nasdaq-100 covered-call category, showing strong investor demand for tech-centric income strategies. IQQQ and QDTE are newer in their adoption cycle but remain important peers within the rapidly expanding Nasdaq-100/0DTE ecosystem.
TDAQ - 9/4/2025 inception date, $47M in AUM (as of 12/2/2025)
QQQI - 1/30/2024 inception date, $6.7B in AUM (as of 12/2/2025)
IQQQ - 3/18/2024 inception date, $306M in AUM (as of 12/2/2025)
JEPQ - 5/3/2022 inception date, $31.7B in AUM (as of 12/2/2025)
QDTE - 3/7/2024 inception date, $954M in AUM (as of 12/2/2025)
The Fund currently expects, but does not guarantee to make distributions on a monthly basis. These distributions may exceed Fund’s income and gains for the Fund’s taxable year. Distributions in excess of the Fund’s current and accumulated earnings and profits will be greeted as a return of capital.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Returns less than one year are not annualized. Standardized performance current to the most recent month-end and quarter-end can be obtained by visiting any of the corresponding ETF funds pages by clicking on their ticker: TDAQ, QQQI, IQQQ, JEPQ, QDTE, QQQ or by calling (844) 403-2888. The funds shown are managed differently and do not perform the same in various economic or market events. The funds investment objectives, strategies, policies, insurances, and restrictions can be found in their respective prospectuses, found by clicking the aforementioned links. More information regarding the differences in these ETFs is available by clicking here.
The TappAlpha Innovation 100 Growth & Daily Income ETF (TDAQ) offers a compelling approach for investors seeking consistent income paired with exposure to the Nasdaq 100’s performance.
Through a daily covered call strategy, TDAQ is designed to generate income from option premiums while aligning with the market’s growth, positioning it as a unique and strategic option for income-focused investors.
Seeking Consistent Income Generation and Market Participation
TDAQ's strategy aims to balance steady income with the potential for market-based gains. By selling “out-of-the-money” options on a daily basis, TDAQ seeks to capture premium income efficiently, with the flexibility to adjust based on market conditions.
This structure is designed to provide investors with opportunities to benefit from income while participating in the upward potential of the Nasdaq 100 index, with the aim of enhancing TDAQ's value as both an income and growth investment option.
Key Considerations for TDAQ
Income Consistency Through Options Strategy
TDAQ employs a daily covered call approach on QQQ, aiming to generate premium income consistently — income that is potentially less impacted by long-term market volatility.
Managed Upside Participation
While the covered call approach limits TDAQ's full upside potential, it allows investors to participate in market growth up to a certain cap. This feature makes TDAQ suitable for income-focused investors who also seek some capital appreciation.
Diversified Nasdaq 100 Exposure with Income Focus
TDAQ provides exposure to the broad Nasdaq 100 Index while seeking to incorporate income generation through options. This dual focus allows investors to maintain broad market exposure without sacrificing income potential.
Expense Efficiency
With a competitive expense structure, TDAQ offers an affordable option for investors compared to similar funds. This makes it an appealing choice for those looking to manage costs while seeking both income and growth exposure.
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