New ETF: Covered call strategy for the Nasdaq 100

Global X is expanding its range of equity ETFs, with investment objective to implement an investment in Nasdaq 100 companies in conjunction with a covered call strategy.

22 November 2022. FRANKFURT (Börse Frankfurt).A new exchange-traded fund issued by Global X has been tradable on Xetra and via Börse Frankfurt since Wednesday.

The Global X Nasdaq 100 Covered Call UCITS ETF tracks the performance of the Cboe NASDAQ-100 BuyWrite Index. The investment objective is to implement an investment in Nasdaq 100 companies in conjunction with a covered call strategy.

In the covered call strategy, call options with a short maturity on the main index are sold, thereby generating income in the form of option premiums. This has a positive effect on the return if the main index moves sideways or negatively. On the other hand, price increases can be limited to a certain extent. The covered call strategy offers investors an improved risk profile by cushioning the risk of loss.

The product offering in Deutsche Börse's XTF segment currently comprises a total of 1,993 ETFs. With this selection and an average monthly trading volume of around €19 billion, Xetra is the leading trading venue for ETFs in Europe.

23 November 2022, © Deutsche Börse AG