Global X NASDAQ 100 Covered Call

ETF description

This ETF combines exposure to large, well‑known companies in the U.S. stock market with an additional strategy aimed at generating income. It invests in a basket of stocks that represent some of the biggest and most established companies across various industries. At the same time, it employs a strategy known as a covered call, where the fund earns income by selling options on some of these stocks. This creates an additional income stream but also limits some of the potential gains when the stock prices rise sharply.

For investors who are interested in balancing growth potential with regular income, this ETF might be appealing. The stocks it holds are generally from large, stable companies, which can provide a degree of reliability, while the income from the options strategy adds another layer of return.

Issuer details

Global X ETFs is a leading provider of specialized thematic and sector‑specific ETFs, with over $50 billion in assets under management as of June 2024. As a subsidiary of Mirae Asset Global Investments, Global X focuses on thematic investing. Founded in 2008 by Bruno del Ama, Global X ETFs is known for its focus on niche and innovative investment themes, allowing investors to access areas of the market experiencing rapid growth and transformation. Notable ETFs include the Global X Robotics & Artificial Intelligence ETF (BOTZ) and the Global X Lithium & Battery Tech ETF (LIT), reflecting Global X’s commitment to providing exposure to cutting‑edge industries and trends.

Index details

The Cboe NASDAQ‑100 BuyWrite V2 index measures the total rate of return of a NASDAQ‑100 covered call strategy. This strategy consists of holding a portfolio indexed to the NASDAQ‑100 and selling a succession of one‑month at‑the‑money NASDAQ‑100 call option.