Defiance Brings First Zero Day Trading ETF to Market

The trading strategy, known as 0DTE, has skyrocketed in popularity in the past year.

Reviewed by: Ron Day
Edited by: Mark Nacinovich

Defiance ETFs, a Miami-based asset manager with five exchange-traded funds, launched the first zero day trading ETF, which taps into the increasingly popular day trading options strategy. 

The Defiance Nasdaq-100 Enhanced Option Income ETF (QQQY), uses the strategy of zero day to expiration options, or 0DTE, as component of its structure. 0DTE options contracts expire on the same day they are traded, which gives the trader a small window to act on potentially moving the underlying investment. According to the firm, the fund will sell ultra-short-dated options on the Nasdaq 100 as part of its strategy.  

“QQQY exemplifies our commitment to innovation and to meeting the evolving needs of investors,” said Defiance ETFs CEO Sylvia Jablonski. “With daily options at the core of these products, we're seeking to unlock a new dimension of income generation within the ETF space.” 

0DTEs Are All the Rage 

0DTEs have skyrocketed in popularity over the past year, and other firms such as ProShares have filed to launch similar funds. They account for 43% of overall S&P 500 options volume, up from 21% in 2021, according to Cboe Global Markets. Jablonski said that the notional trading value of 0DTE options has reached $1 trillion. 

The fund will pay its investors income on a monthly basis, according to the company. Defiance is also hopes to launch the S&P 500 Enhanced Options Income ETF (JEPY) and the Defiance R2000 Enhanced Options Income ETF (IWMY).  

“Anything that’s doing option writing now to provide income, the poster child being JEPI [the JPMorgan Equity Premium Income ETF], is immensely popular right now,” said Todd Sohn, ETF analyst at Strategas. “Investors and traders just love getting index or stock exposure, and then getting the monthly distribution.”  

Defiance has $850 million in assets under management.  

Lucy Brewster is a finance reporter at Before joining, she was a finance fellow at Fortune covering investing strategy, markets and venture capital. Brewster is a graduate of Vassar College.