Alternative Investments/ESG: Global X Debuts ESG-Focused, Options-Based ETFs
The new Global X ETFs offer exposure to ESG and also limit the risk of losses.
Global X ETFs, a company based in New York that offers exchange-traded funds (ETFs), has revealed the introduction of two new funds. These funds, the Global X S&P 500 ESG Covered Call ETF (XYLE) and the Global X Nasdaq 100 ESG Covered Call ETF (QYLE), add to the company’s range of options-based funds.
Covered call strategies can be a valuable addition to investors’ portfolios as they offer a diversified source of income and the potential to reduce downside risks. Previously, covered call strategies were only available to those with experience in options trading. However, the introduction of ETFs that incorporate covered call strategies makes it simpler for investors to utilize these strategies. The new Global X funds will provide investors access to a covered call strategy while ensuring securities selected meet specific sustainability criteria associated with Environmental, Social, and Governance (ESG) factors. (CISION PRNewswire)
Rohan Reddy, Director of Research at Global X ETFs, noted that investors frequently turn to covered call strategies when facing economic uncertainty due to concerns of a market downturn or increasing rates. Reddy stated that the launch of the two new ETF strategies will allow investors to invest in companies that display positive ESG characteristics and potentially earn income and monetize volatility.
The Global X S&P 500 ESG Covered Call ETF (XYLE) and the Global X Nasdaq 100 ESG Covered Call ETF (QYLE) aim to provide investment outcomes that align with the Cboe S&P 500 ESG BuyWrite Index and the Nasdaq-100 ESG BuyWrite Index, respectively, before fees and expenses.
The expense ratios of both funds are 0.60%.
Related Story: Global X ETFs Australia Launches Low Cost Carbon ETF
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