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Global X Japan, the country’s first global innovative ETFs provider, is launching the Nasdaq-100 Covered Call ETF (“2865”) aiming to offer another source of high-income potential and effective options execution to local investors.
Established in 2019 in Japan, Global X Japan is one of the asset managers specializing in ETFs in the local market that has enjoyed stunning business growth and success, showcased by its growth of assets under management, with 97% per annum. Its innovative range of ETFs centered around thematic growth, income and core strategies has enabled Global X to thrive despite the uncertainties brought on by the pandemic.
With its commitment to exploring different kind of solutions to empower investors with the right strategies at the right time, Global X Japan has 24 ETFs spanning across different themes of thematic growth, income and core strategies.
Why Nasdaq-100®
- Nasdaq-100 Index® is one of the world’s preeminent large-cap growth indexes.
- The Index comprises of 100 of the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization.
- Total value of exchange traded products tracking the Index exceeded USD $300 billion at the end of 2021
Why 2865
- High income potential: The ETF seeks to generate income through covered call writing, which historically produces higher yields in periods of volatility.
- Efficient options execution: The writes call options on Nasdaq-100 Index® saves investors time and money.
Why Covered Call
One of the ways to enhance returns is to generate income from strategy. This involves purchasing the stocks of Nasdaq-100 Index® followed by writing call options on the Index.
- Covered call strategies limit upside participation and generate income through collecting premiums received from option-writing.
- During times of market volatility, covered call strategies tend to perform better.
“Working with Nasdaq creates strong synergy and visibility for Global X Japan. Nasdaq-100 Index® has a proven history of growth, as one of flagship indices its value can be more enhanced with a covered call strategy. Global X Japan being the key player in the ETFs market brings an effective wrapper and investment strategy to local investors. We are here to bring untapped but innovative product solutions to the investors in Japan,” said Jooyoung Yun, CIO, Global X Japan.
Global X. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s).
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Image and article originally from www.nasdaq.com. Read the original article here.