Global X Expands Its Income Product Lineup with Launch of New Covered Call ETFs

NEW YORK, May 8, 2024 /PRNewswire/ -- Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), today launched the Global X MLP & Energy Infrastructure Covered Call ETF (MLPD) and the Global X S&P 500 Quality Dividend Covered Call ETF (QDCC). The funds are Global X's latest additions to its covered call suite, which offers investors ETF strategies that look beyond traditional fixed income to potentially increase or diversify a portfolio's yield.

Covered call strategies can play an important role in a portfolio, offering a diversified source of income while helping to potentially mitigate downside risk. While covered call strategies once required investors to trade options themselves, the availability of covered call ETFs can help investors more easily and efficiently integrate these strategies.

The Global X MLP & Energy Infrastructure Covered Call ETF (MLPD) and the Global X S&P 500 Quality Dividend Covered Call ETF (QDCC) seek to offer diversified income by holding and then writing call options on the Global X MLP & Energy Infrastructure ETF (MLPX) and the Global X S&P 500 Quality Dividend ETF (QDIV) respectively.

"During volatile markets, elevated premiums can make covered call strategies especially appealing for investors seeking higher income and risk management," said Rohan Reddy, Director of Research at Global X ETFs. "Global X is a long-time leader when it comes to exchange-traded covered call strategies, and these latest two offerings build on our leadership by offering income solutions to investors seeking access to MLPs or quality dividend equities."

The Global X MLP & Energy Infrastructure Covered Call ETF (MLPD) and the Global X S&P 500 Quality Dividend Covered Call ETF (QDCC) seek to provide investment results that correspond, before fees and expenses, to the Cboe MLPX ATM BuyWrite Index and the Cboe QDIV ATM BuyWrite Index, respectively. MLPD carries an expense ratio of 0.60% and QDCC carries an expense ratio of 0.35%.

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 a wide range of ETF strategies and over $47 billion in U.S. assets under management.^iv While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer both Core and Commodity funds to suit a wide 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 $600 billion in assets under management worldwide.^v 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 $120bn in assets under management. ^vi

Important Disclosures:

Strategies discussed may not be suitable for all investors. Please consult a financial professional for more information regarding your investment situation.

Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit or guarantee against a loss. Investors should be willing to accept a high degree of volatility in the price of the funds' shares and the possibility of significant losses.

The funds engage in options trading. 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 asset above the exercise price, but continue to bear the risk of a decline in the asset. A liquid market may not exist for options held by the funds. 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.  

Investments in securities of MLPs involve risk that differ from investments in common stock including risks related to limited control and limited rights to vote on matters affecting the MLP. MLP common units and other equity securities can be affected by macro-economic and other factors affecting the stock market in general, expectations of interest rates, investor sentiment towards MLPs, changes in a particular issuer's financial condition, or unfavorable or unanticipated poor performance of a particular issuer (in the case of MLPs, generally measured in terms of distributable cash flow). MLPD invests in the energy industry, which entails significant risk and volatility.

MLPD also expects to pay distributions, which will be treated as a return of capital for tax purposes rather than from net profits and shareholders should not assume that the source of distributions is from the net profits of the Fund.

Neither the Fund nor the Adviser has control over the actions of underlying MLPs. The amount of cash that each individual MLP can distribute to its partners will depend on the amount of cash it generates from operations, which will vary from quarter to quarter depending on factors affecting the energy infrastructure market generally. Available cash will also depend on the MLPs' level of operating costs (including incentive distributions to the general partner), level of capital expenditures, debt service requirements, acquisition costs (if any), fluctuations in working capital needs, and other factors. The MLP holdings of the underlying fund expect to generate significant investment income, and the fund's investments may not distribute the expected or anticipated levels of cash, resulting in the risk that the fund may not have the ability to make cash distributions as investors expect from MLP-focused investments. Past distributions are not indicative of future distributions. There is no guarantee that dividends will be paid. Companies may reduce or eliminate dividends at any time.

Carefully consider the funds' 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., which is not affiliated with Global X Management Company LLC or Mirae Asset Financial Group.

CONTACT: Naomi Sussis, [email protected]

^iv Source: Global X ETFs, as of April 2024
^v Source: Mirae Asset, as of April 2024
^vi Source: Mirae Asset, as of April 2024

SOURCE Global X Management Company LLC