Global X, Launches 3 New Covered Call ETFs

[Asia Economy Reporter Junho Hwang] Mirae Asset Global Investments announced on the 24th that its U.S. ETF management subsidiary 'Global X' listed three sector ETFs?financial, healthcare, and IT?on the New York Stock Exchange on the 22nd local time.

The 'Global X Financials Covered Call & Growth ETF (ticker FYLG)' is an ETF that invests in major U.S. financial groups. The ETF's benchmark index is the 'Cboe S&P Financial Select Sector Half BuyWrite Index.'

Key companies included in the index are Berkshire Hathaway, the investment company owned by Warren Buffett; JPMorgan Chase, the largest investment bank in the U.S.; Bank of America, the largest commercial bank in the U.S.; and Goldman Sachs, an investment bank and global financial institution.

The 'Global X Health Care Covered Call & Growth ETF (ticker HYLG)' invests in companies in the healthcare sector. It invests in leading U.S. health insurance and healthcare companies such as UnitedHealth Group and Johnson & Johnson, a manufacturer of healthcare products. The ETF's benchmark index is the 'Cboe S&P Health Care Select Sector Half BuyWrite' index.

The 'Global X Information Technology Covered Call & Growth ETF (ticker TYLG)' invests in companies such as Apple, Microsoft, and Nvidia (NVDIA).

These three ETFs pay monthly distributions using a covered call strategy based on their respective benchmark indices. The covered call strategy involves buying the underlying asset while simultaneously selling call options on that asset. When using the covered call strategy, losses are buffered by the option premium if the underlying asset declines, while gains are capped at a certain level if the underlying asset rises.

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

This content was produced with the assistance of AI translation services.