Global X Gold Producer Equity Covered Call ETF (HEPZF)

Overview

The Horizons Gold Producer Equity Covered Call ETF is a specialized exchange-traded fund (ETF) that was launched and is managed by Horizons ETFs Management (Canada) Inc., focusing predominantly on investments within the North American public equity markets, specifically in the gold mining and exploration sector. Instrumental to its investment strategy, the fund incorporates the use of derivatives, notably covered call options, to engage in the stocks of companies regardless of their market capitalization. Aiming to track the performance of its portfolio against a well-established benchmark, the S&P/TSX Global Gold Index, the ETF provides a unique blend of growth potential through gold industry exposure and income through its covered call strategies. This fund was first formed on April 11, 2011, establishing its domicile in Canada, with the intent to offer investors a diversified path to investing in gold-related equities.

Products and Services

• Investment in Public Equity Markets of North America

  The Horizons Gold Producer Equity Covered Call ETF offers investors exposure to the North American public equity markets, specifically targeting the gold mining and exploration sector. This focus on gold-related equities allows investors to diversify their portfolio within the precious metals sector, potentially hedging against inflation and enjoying growth from gold’s market performance.

• Derivative Strategies Using Covered Call Options

  Utilizing derivatives, particularly covered call options, is a distinctive strategy of the fund. This involves holding a position in a stock and simultaneously selling a call option on the same stock. This approach aims to generate additional income from the option premiums, a feature that attracts investors seeking not only the investment growth from gold equities but also the possibility of earning regular income, especially in sideways or slightly upward trending markets.

• All Market-Capitalization Investing

  By not limiting investments to companies of a specific market capitalization, the fund opens the way for a broad reach across the entire market spectrum. This includes small-cap companies, which might present high growth potential, mid-cap companies with a balance of growth and stability, and large-cap companies that are often seen as safer, more stable investments. This strategy allows for a dynamic and flexible investment approach, responsive to the changing landscapes of the gold sector.