【Global Xpress】3416/3419: Income Strategy "Covered Call ETF" Dividend Results, Aiming for Monthly Income Distribution*(Dividend and Dividend Rate is not guaranteed, dividend distribution is at the Manager’s discretion, distributions may be made out of capital*)
[For Hong Kong Investors Only] Global X ETFs introduced two covered call option strategy ETFs on the Hong Kong Stock Exchange on February 29, 2024. These ETFs aim to meet investors' demand for stable income sources and resistance against market volatility. Investors seeking a relatively #stable #income #source and #protection against #marketing #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#. Aiming for Monthly Income Distribution. (Dividend and Dividend Rate is not guaranteed, dividend distribution is at the Manager’s discretion, distributions may be made out of capital*)
Global X ETFs invites Dennis, Head of Portfolio Management for ETFs, to share an in-depth explanation of the covered call strategy.
00:41 - What were the March dividend results for the 2 covered call ETFs?
01:12 - Do the 2 covered call ETFs pay dividends monthly?
01:34 - How is the premium managed in the covered call ETF strategy?
02:49 - What is the historical performance of the covered call strategy?
03:29 - What are the differences between products tracking the #HSI and #HSCEI?
* Positive distribution yield does not imply a positive return on the total investment. 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 attribute 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.
# While Covered call writing limits potential gains of the underlying security, it provides a relatively stable option premium income for investors.
Learn more about Global X HSI Components Covered Call Active ETF (3419) and Global X HSCEI Components Covered Call Active ETF (3416)’s risk factors: $A GX国指备兑(03416)$ $A GX恒指备兑(03419)$ https://www.globalxetfs.com.hk/campaign/covered-call-etf/
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