ETFs
Global X Expands Income Product Lineup with Launch of New Covered Call ETFs
NEW YORK, May 8, 2024 /PRNewswire/ — Global ETFs, the New York-based exchange-traded fund (ETF) provider, today launched the Global X MLP & Energy Infrastructure Covered Call ETF (MLPD) and the Global X S&P 500 Quality Dividend Covered Call ETF (QDCC) . These funds are Global
Covered call strategies can play an important role in a portfolio, providing a diversified source of income while helping to potentially mitigate downside risk. While covered call strategies once required investors to trade options themselves, the availability of covered call ETFs can help investors integrate these strategies more easily and efficiently.
The Global X MLP & Energy Infrastructure Covered Call ETF (MLPD) and the Global Infrastructure ETF (MLPX). ) and the Global X S&P 500 Quality Dividend ETF (QDIV) respectively.
“In times of market volatility, high premiums can make covered call strategies particularly attractive to investors seeking higher income and greater risk management,” said Rohan Reddy, director of research at Global ETFs. “Global quality dividends.
The Global X MLP & Energy Infrastructure Covered Call ETF (MLPD) and the Global BuyWrite and the Cboe index. QDIV ATM BuyWrite Index, respectively. MLPD has an expense ratio of 0.60% and QDCC has an expense ratio of 0.35%.
About Global X ETFs:
Global Our product offering includes a broad range of ETF strategies and more than $47 billion in assets under management in the United States. We also offer basic and commodity funds to meet a wide range of needs. investment objectives. Discover our ETFs, research and information, and much more at www.globalxetfs.com.
Global United States, Brazil, Canada, Colombia and Europe. , Hong Kong, India, Japan, Korea and Vietnam with more than $120 billion in assets under management. vi
Important Disclosures:
The strategies discussed may not be suitable for all investors. Please consult a financial professional for further information regarding your investment situation.
Investing involves risks, including possible loss of capital. Diversification does not guarantee a profit or guarantee against a loss. Investors should be prepared to accept a high degree of volatility in fund share prices and the possibility of significant losses.
The funds engage in options trading. An option is a contract sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed price within a certain period or on a specific date. A covered call involves holding a long position in a particular asset and selling a call option on that same asset with the goal of realizing additional income from the option premium. By writing covered call options, the fund limits its ability to profit from an increase in the price of the underlying asset above the strike price, but continues to bear the risk of a decline in the price. ‘active. There may not be a liquid market for the options held by the funds. Although the fund receives premiums for writing call options, the price it realizes when an option is exercised could be significantly lower than the current market price of the index.
Investments in MLP securities involve risks that differ from investments in common stock, including risks related to limited control and limited voting rights on matters affecting the MLP. MLP common units and other equity securities may be affected by macroeconomic and other factors affecting the stock market generally, interest rate expectations, investor sentiment toward MLPs, changes in the financial condition of a particular issuer or the adverse or unanticipated poor performance of a particular issuer (in the case of MLPs, generally measured in terms of distributable cash flows). MLPD invests in the energy sector, which involves significant risks and volatility.
MLPD also expects to make distributions, which will be treated as a return of capital for tax purposes rather than as net profits, and shareholders should not assume that the source of distributions is from the net profits of the Fund.
Neither the Fund nor the Adviser has control over the actions of the underlying MLPs. The amount of cash that each MLP can distribute to its partners will depend on the amount of cash it generates through its operations, which will vary from quarter to quarter depending on factors affecting the energy infrastructure market in general. Available cash will also depend on the level of operating costs of the MLPs (including incentive distributions to the general partner), the level of capital expenditures, debt service requirements, acquisition costs (if applicable). ), fluctuations in working capital requirements and other factors. The underlying fund’s MLP holdings are expected to generate significant investment income, and the fund’s investments may not distribute expected or anticipated levels of cash, resulting in the risk that the fund may not be able to make returns. cash distributions as investors expect from MLP. -targeted investments. Past distributions are no guarantee of future distributions. There is no guarantee that dividends will be paid. Companies can reduce or eliminate their dividends at any time.
Consider the investment objectives, risks, charges, and expenses of the funds carefully before investing. This and other information can be found in the funds’ full prospectuses or summaries, which can be obtained at globalxetfs.com. Please read the prospectus carefully before investing.
Global X Management Company LLC serves as advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company LLC or Mirae Asset Financial Group.
CONTACT: Naomi Sussis, [email protected]
iv Source: ETF Global
v Source: Mirae Asset, April 2024
vi Source: Mirae Asset, April 2024
SOURCE Global X Management Company LLC