NEW
YORK, Nov. 8, 2023 /PRNewswire/ -- Global X
ETFs, the New York-based provider
of exchange-traded funds (ETFs), today announced the launch of the
Global X MSCI Emerging Markets Covered Call ETF (EMCC) on the New
York Stock Exchange (NYSE), adding to Global X's growing selection
of covered call and emerging markets investment
strategies.
Emerging market economies have enjoyed growth at higher rates
than their developed peers, balanced by higher levels of volatility
in price relative to major domestic indices since
2011.i For investors seeking income, emerging
markets can therefore potentially offer them both higher yields as
well as a means to further diversify their portfolios. EMCC seeks
to generate income through covered call writing. The fund seeks to
own all of the stocks that exist in the MSCI Emerging Markets
Investable Market Index by investing in the iShares Core MSCI
Emerging Markets ETF then proceeds to write options that cover 100%
of its notional holdings, making monthly distributions.
"While China has faced macroeconomic challenges, other key
emerging markets have rebounded since the Covid-19 pandemic,
especially as major headwinds such as central banks' hawkishness
have receded while tailwinds such as infrastructure investments
have picked up," said Rohan Reddy,
Director of Research at Global X ETFs. "Through an options-based
approach, EMCC offers investors access to a diverse set of
geographies which offer potentially compelling yields amid a mixed
range of performances."
EMCC will join the Global X Income suite of over two dozen ETFs
and $19 billion in assets under
management.ii
About Global X ETFs
Global X ETFs was founded in 2008.
For more than a decade, our mission has been empowering investors
with unexplored and intelligent solutions. Our product lineup
features over 100 ETF strategies and over $51 billion in worldwide assets under
management.iii While we are widely recognized for our
Thematic Growth, Income, Commodity, and International Access ETFs,
we also offer Core, Risk Management, Digital Asset, and other
solutions to suit a range of investment objectives. Explore our
ETFs, research and insights, and more at www.globalxetfs.com.
Global X is a member of Mirae Asset Financial Group, a global
leader in financial services, with more than $540 billion in assets under management
worldwide.iv Mirae Asset has an extensive global
ETF platform ranging across the US, Brazil, Canada, Colombia, Europe, Hong
Kong, India, Japan, Korea, and Vietnam with over $80bn in assets under management.v
Media Contact:
Ariel Kouvaras, Sloane PR
212-446-1884
akouvaras@sloanepr.com
Important Information:
Investing involves risk,
including the possible loss of principal. Diversification does not
ensure a profit or guarantee against a loss. International
investments may involve risk of capital loss from unfavorable
fluctuation in currency values, from differences in generally
accepted accounting principles or from social, economic or
political instability in other nations. Emerging markets involve
heightened risks related to the same factors as well as increased
volatility and lower trading volume.
Investors in the fund should be willing to accept a high degree
of volatility in the price of the fund's shares and the possibility
of significant losses.
An option is a contract sold by one party to another that gives
the buyer the right, but not the obligation, to buy (call) or sell
(put) a stock at an agreed upon price within a certain period or on
a specific date. A covered call option involves holding a long
position in a particular asset, and writing a call option on that
same asset with the goal of realizing additional income from the
option premium. By selling covered call options, the fund limits
its opportunity to profit from an increase in the price of the
underlying index above the exercise price, but continues to bear
the risk of a decline in the index. A liquid market may not exist
for options held by the fund. While the fund receives premiums for
writing the call options, the price it realizes from the exercise
of an option could be substantially below the indices current
market price. Investment in the fund is subject to the risks of the
underlying fund.
Shares of ETFs are bought and sold at market price (not NAV) and
are not individually redeemed from the Fund. Brokerage commissions
will reduce returns.
Carefully consider the fund's investment objectives,
risks, and charges and expenses before investing. This and other
information can be found in the funds' full or summary
prospectuses, which may be obtained
at globalxetfs.com. Please read the
prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to Global X
Funds. The Funds are distributed by SEI Investments Distribution
Co. (SIDCO), which is not affiliated with Global X Management
Company LLC or Mirae Asset Financial Group.
i Source: Bloomberg L.P. data, as of 11/7/2023, CBOE
Emerging Markets Volatility Index vs. daily price variance of
S&P Developed Index, since 2011
ii Source: Global X, as of 10/27/23
iii Source: Global X, as of 10/27/23
iv Mirae Asset, as of 6/31/23
v Mirae Asset, as of 7/16/2023
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SOURCE Global X Management Company LLC