NEW YORK, March 5, 2019 /PRNewswire/ -- Global X
Management Company LLC (Global X), the New York-based provider of exchange-traded
funds (ETFs), today announced that its covered call suite of ETFs
has crossed the $500 million mark for
assets under management. The suite includes the Global X Nasdaq 100
Covered Call ETF (QYLD), and the Global X S&P 500 Covered Call
ETF (HSPX).
Covered call strategies, like QYLD and HSPX, can be attractive
to investors during times of heightened market volatility and as a
potential source of income. By selling call options on the indices
that the funds track, they are able to generate income in the form
of the premium for investors on a monthly basis that shares little
in common with more traditional sources of income. As volatility in
the market has increased, the premiums received from selling call
options typically increased, resulting in higher
income.
"After a protracted period of low volatility and strong market
returns, particularly within the US, investors face a more
uncertain market outlook," said Rohan
Reddy, research analyst at Global X. "We've seen investors
gravitate towards these funds as volatility picks up and they look
for strategies that may generate income and manage potential
downtrends."
QYLD and HSPX became reorganized under the Global X ETFs brand
and trust in December 2018. Since
then, the two have brought in a combined $42
million in net new assets.i
ABOUT GLOBAL X
Seeking to provide access to high-quality and cost-efficient
investment solutions, Global X is a New
York-based sponsor of exchange-traded funds (ETFs).
Founded in 2008, we are distinguished by our thematic growth,
income, core, international access, commodities, alpha, and risk
management suites of ETFs and have more than 60 funds available
across U.S. and foreign exchanges. Global X is recognized as a
leader in providing intelligent investment solutions for our
clients.
There are risks involved with investing, including possible loss
of principal. Concentration in a particular industry or sector will
subject the Funds to loss due to adverse occurrences that may
affect that industry or sector. Investors should be willing to
accept a high degree of volatility in the price of the fund's
shares 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 upon price within a certain period or on a specific
date. A covered call option involves holding a long position in a
particular asset, in this case U.S. common equities, and writing a
call option on that same asset with the goal of realizing
additional income from the option premium. By selling
covered call options, the fund limits its opportunity to profit
from an increase in the price of the underlying index above the
exercise price, but continues to bear the risk of a decline in the
index. A liquid market may not exist for options held by the fund.
While the fund receives premiums for writing the call options, the
price it realizes from the exercise of an option could be
substantially below the indices current market price. QYLD is
non-diversified.
Shares of ETFs are bought and sold at market price (not NAV) and
are not individually redeemed from the Fund. Brokerage commissions
will reduce returns.
Carefully consider the Funds' investment objectives, risk
factors, charges, and expenses before investing. This and
additional information can be found in the Funds' summary and full
prospectuses, which may be obtained by calling 1-888-GX-FUND-1
(1-888-493-8631), or by
visiting http://www.globalxfunds.com/.
Read the prospectus carefully
before investing.
Global X Management Company LLC serves as an advisor to Global X
Funds. The Funds are distributed by SEI Investments Distribution
Co. (SIDCO), which is not affiliated with Global X Management
Company LLC. Global X Funds are not sponsored, endorsed, issued,
sold or promoted by CBOE, nor does CBOE make any representations
regarding the advisability of investing in the Global X Funds.
Neither SIDCO nor Global X is affiliated with CBOE.
i Source: ETF.com. Data from 12/25/2018 to 3/1/2019
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SOURCE Global X Management Company LLC