# Liquid Strategies Launches OVQ, a Nasdaq-100 Income ETF With a Put-Spread Overlay

> Liquid Strategies launched OVQ, an actively managed ETF pairing Nasdaq-100 exposure with a put-spread overlay and a targeted 12% annual distribution rate.

- Published: 2026-10-23T18:36:59+00:00
- Section: Product Launches
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-23/liquid-strategies-ovq-nasdaq-100-income-etf
- Source: [Business Wire](https://www.businesswire.com/news/home/20261023179939/en/)

## Key takeaways

- Liquid Strategies launched the Overlay Shares Nasdaq 100 Income ETF (OVQ), an actively managed fund combining Nasdaq-100 exposure with a put-spread options strategy.
- OVQ targets, but does not guarantee, a 12% annual distribution rate, and a significant portion of distributions may be return of capital.
- Liquid Strategies reported $2.189 billion in AUM as of October 16, 2026, and has managed option overlay strategies across the Overlay Shares suite since 2019.

[Liquid Strategies](https://akta.pro/company-profiles/000e8rg/liquid-strategies) announced the launch of the Overlay Shares Nasdaq 100 Income ETF (OVQ), an actively managed ETF that pairs Nasdaq-100 equity exposure with a put-spread options strategy designed to seek income. The fund targets, but does not guarantee, a 12% annual distribution rate. [Business Wire](https://www.businesswire.com/news/home/20261023179939/en/) published the announcement on October 23, 2026.

## How the OVQ Put-Spread Strategy Works

OVQ is managed with the goal of providing relatively stable monthly distributions. 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.

Eric McArdle, Head of Advisor Solutions at Liquid Strategies, said many income-focused equity ETFs rely on covered-call strategies that may limit participation in market advances. "OVQ was designed with a different approach," McArdle said. "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. Certain index options the fund invests in are expected to qualify as Section 1256 Contracts under the Internal Revenue Code, 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 distributions may consist of return of capital, which reduces a shareholder's cost basis and is not the same as tax-free income.

In managing OVQ, the adviser considers 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 adds to Liquid Strategies' option overlay work across the Overlay Shares ETF suite since 2019. The Atlanta-based, employee-owned manager, founded in 2013, reported $2.189 billion in AUM across ETFs, interval funds and separate accounts as of October 16, 2026. The fund's prospectus and summary prospectus are available at [www.lsfunds.com/funds](https://lsfunds.com).

## Liquid Strategies' Distribution and Product Record

According to akta.pro [company records](https://akta.pro/company-data), Liquid Strategies' strategies became available through the SMArtX Advisory Solutions Manager Marketplace in January 2026, expanding reach to 388 partner firms and 2,668 strategies on the platform. The same records show the firm serves as sub-adviser to Kensington Asset Management's Kensington Hedged Premium Income ETF (KHPI) and Kensington Defender Fund (DFNDX), with Quasar Distributors, LLC distributing those funds. Foreside Fund Services, LLC serves as distributor for the Overlay Shares ETF suite and is not affiliated with Liquid Strategies as investment adviser.

## Companies in this story

- [Liquid Strategies company profile](https://akta.pro/company-profiles/000e8rg/liquid-strategies) · website: https://lsfunds.com

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