Global X Launches New Monthly Distribution ETF Utilizing Covered Call Strategy

[Asia Economy Reporter Hwang Yoon-joo] Mirae Asset Global Investments announced on the 6th that its U.S. ETF management subsidiary, Global X, listed the 'Global X Russell 2000 Covered Call & Growth ETF' on the New York Stock Exchange on October 5 local time.

The Global X Russell 2000 Covered Call & Growth ETF (ticker RYLG) is an ETF that pays monthly distributions using a covered call strategy based on the Russell 2000 index. The covered call strategy involves buying the underlying asset and simultaneously selling call options on that asset. This ETF employs a 'partial covered call strategy' by purchasing the Russell 2000 index spot and selling at-the-money (ATM) call options equal to half the amount, enabling monthly distributions and tracking 50% of the index's upside.

The ETF's benchmark index is the 'CBOE Russell 2000 Half BuyWrite Index.' This index is calculated by combining the Russell 2000 index spot and 50% at-the-money call options on the Russell 2000. The Russell 2000 index, calculated by FTSE Russell, a subsidiary of the London Stock Exchange's index business, is a leading U.S. small-cap stock index composed of 2,000 U.S. small-cap companies, with sectors such as financials and healthcare relatively evenly distributed.

Global X, established in 2008, is a U.S.-based ETF specialist management company. After launching its first ETF in 2009, Global X gained attention as a rising star in the U.S. ETF market by releasing differentiated innovative products such as thematic and income ETFs under the catchphrase 'Beyond Ordinary ETFs.' Mirae Asset Global Investments acquired Global X in 2018. At the time of acquisition, Global X's assets under management were $10.5 billion, which grew to $38.6 billion as of the end of August 2022. As of the end of September 2022, Global X ETFs are traded not only in the U.S. but also in Colombia, Japan, Hong Kong, Europe, Brazil, and Australia.

Global X ETFs can be traded through overseas stock accounts at major domestic securities firms such as Mirae Asset Securities.

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