【Global Xpress】Latest Income Strategy* to Hedge Against Market Volatility - "Covered Call" | Global X ETF Hong Kong
[For Hong Kong Investors Only]
Investors seeking a relatively stable income* source and protection against market volatility might consider adding a covered call ETF to their investment portfolio. A covered call ETF employs a strategy called covered call writing to generate income for investors.
Global X ETFs invites Dennis, Head of Portfolio Management for ETFs, to share in-depth explanation on the covered call strategy.
00:26 - What is a covered call?
01:02 - What are the risks and potential gain of a covered call strategy?
02:27 - What are the best situations to buy a "covered call" product? 2024, the latest income strategy* to hedge against an economic downturn is coming soon.
Global X ETFs is going to make its grand debut on February 29, 2024, with the launch of two covered call option strategy ETFs on the Hong Kong Stock Exchange, aiming to pay dividends monthly (dividend payout ratio is not guaranteed, dividends can be distributed out of capital#), look forward to it: Global X HSI Components Covered Call Active ETF (3419) Global X HSCEI Components Covered Call Active ETF (3416)
* While Covered call writing limits potential gains of the underlying security, it provides a relatively stable option premium income for investors. # Positive distribution does not mean positive return. Payments of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the Net Asset Value per Share of the Fund and will reduce the capital available for future investment.
Learn more about Global X HSI Components Covered Call Active ETF (3419) and Learn more about Global X HSCEI Components Covered Call Active ETF (3416)’s risk factors: https://www.globalxetfs.com.hk/campaign/covered-call-etf/
This material is intended for Hong Kong investors only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. Investment involves risk. Past performance information presented is not indicative of future performance. Investing in the funds may expose to risks (if applicable including active investment management risk, futures contracts risk, margin requirement risk, failure of clearing house risk, concentration risk, securities lending transaction risks, currency risk, distributions paid out of capital or effectively out of capital risk, and trading risks. Investors should refer to the fund’s offering document for further details, including the risk factors. Issuer: Mirae Asset Global Investments (Hong Kong) Limited. This material has not been reviewed by the SFC. MAK Sze Man (Licensed by the Securities and Futures Commission for Types 1 and 4 regulated activities under the Securities and Futures Ordinance). MAK Sze Man and her associate(s) do not hold the securities/fund mentioned in the video. FOK Ho Wah (Licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities under the Securities and Futures Ordinance). FOK Ho Wah and his associate(s) do not hold the securities/fund mentioned in the video.
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