A U.S. Subsidiary of Mirae Asset Global Investments
Mirae Asset Global Investments announced on Nov. 24 that its U.S. ETF management subsidiary Global X listed three new covered call ETFs covering the financials, healthcare, and IT sectors of the S&P500 on the New York Stock Exchange on Nov. 22 (local time).
The Global X Financials Covered Call & Growth ETF (ticker FYLG) is an ETF that invests in major U.S. financial groups. Its ETF comparison index is the Cboe S&P Financial Select Sector Half BuyWrite Index. Major companies included in the index include Berkshire Hathaway, an investment company owned by Warren Buffett; JPMorgan Chase, the largest U.S. investment bank; Bank of America, the largest commercial bank in the world; 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 including UnitedHealth Group, a leading U.S. health insurance and healthcare company, and Johnson & Johnson, a health and medical product maker, and others. Its ETF comparison index is the Cboe S&P Health Care Select Sector Half BuyWrite Index.
Global X Information Technology Covered Call & Growth ETF (ticker TYLG) is an ETF that invests in IT giants such as Apple, Microsoft, and GPU design company Nvidia. Its ETF comparison index is the Cboe S&P Technology Select Sector Half BuyWrite Index.
The three ETFs pay monthly distributions using a covered call strategy based on each comparative index. By using a covered call strategy, investors buy an underlying asset and simultaneously sell a call option on that asset. When the covered call strategy is used, loss is buffered by an option selling premium when an underlying asset goes down, and the rate of return is limited to a certain level when the underlying asset goes up.