Global X S&P 500 Covered Call & Growth ETF (XYLG)

Overview

The fund is an investment entity that allocates at least 80% of its total assets towards the securities of its underlying index. This indexing approach is designed to measure the performance of a hypothetical portfolio. This portfolio not only includes stocks from the S&P 500® Index, often referred to as the "reference index," but also engages in writing (or selling) consecutive one-month at-the-money covered call options on this reference index. The primary strategy employed by the fund for managing its investments is replication, aiming to closely mimic the performance of the underlying index.

Products and Services

The fund offers a distinct investment product characterized by a unique blend of strategies involving stocks and options:

• Securities Investment - The fund commits a significant portion of its resources, at least 80%, to purchasing securities that are part of the underlying index. This method relies on the strategic selection of stocks included in the S&P 500® Index, aiming to capitalize on the composite performance of these high-value companies.
• Covered Call Options Strategy - Alongside direct securities investment, the fund employs a covered call strategy. This involves the periodic selling of one-month at-the-money call options on the S&P 500® Index itself. The intention behind this strategy is to generate additional income through premiums received from selling these options, while also potentially offering a hedge against downside market movements. This approach is indicative of a sophisticated investment model that seeks to leverage the volatility and directionality of the market to the advantage of the fund and its investors.