Global X ETF announces today the expansion of their US product lineup with the launch of the Global X Nasdaq 100 ESG Covered Call ETF (QYLE) and the Global X S&P 500 ESG Covered Call ETF (XYLE).
QYLE and XYLE are the latest additions to Global X’s covered call suite and are designed to offer investors the potential to achieve multiple goals.
One goal an investor may have for their portfolio is to take Environmental, Social, and Governance (ESG) considerations into account in which both ETFs are designed to invest in the equities of large-cap companies who display positive ESG characteristics by tracking an index that employs an ESG screening process.
The second goal is that of an income investor, seeking to increase income potential via a covered call strategy that sells call options. These two ETFs are our first covered call-related ESG offerings whose portfolios implement this two-pronged ESG and income-oriented strategy.
“Over the past several quarters, we’ve seen investors increasingly drawn to covered call strategies as a way to generate income through periods of volatility. This has been most visible in our flagship products, the Global X Nasdaq 100 Covered Call ETF (QYLD) and the Global X S&P 500 Covered Call ETF (XYLD). The newly listed QYLE and XYLE follow a parallel income strategy, offering monthly distributions while holding stocks in the respective benchmarks that are screened for ESG criteria. They join a global suite of covered call solutions that includes listings in the US, Europe and Australia, with more than $10bn in assets under management”.Luis Berruga, CEO at Global X ETF.
The Global X Nasdaq 100 ESG Covered Call ETF (QYLE) follows a “covered call” or “buy-write” strategy, in which the Fund buys the stocks in the Nasdaq 100 ESG Index and “writes” or “sells” call options on the Nasdaq 100 Index.
The Global X S&P 500 ESG Covered Call ETF (XYLE) follows a “covered call” or “buy-write” strategy, in which the Fund buys the stocks in the S&P 500 ESG Index and “writes” or “sells” corresponding call options on the same index.