Bringing you live news and features since 2006 

Global X launches Russell 2000 Covered Call ETF

RELATED TOPICS​

Global X ETFs, a New York based provider of exchange traded funds, has launched the Global X Russell 2000 Covered Call ETF (RYLD), which is designed to track the Cboe Russell 2000 BuyWrite Index. 

The fund gains exposure to the stocks in the Russell 2000 Index and writes at-the-money monthly call options on the same index. The fund receives a premium from writing the call options, which can help increase the fund’s distributions and potentially mitigate downside risks.

The Russell 2000 Index primarily includes smaller market capitalisation US companies (small caps), those with a market value between USD300 million and USD2 billion. The small cap index is historically linked to increased volatility and returns relative to mid- and large-cap indices. As volatility rises, so too does the size of the premium that can be generated by writing a call option. RYLD presents a single solution for investors looking to incorporate a small cap covered call strategy, who may otherwise need to accept significant time and expense to operate this strategy individually.

“Small caps can have higher volatility, which typically leads to greater option premiums,” says Rohan Reddy, Research Analyst at Global X. “We are thrilled to be able to offer investors the opportunity to utilise a covered call strategy on the premier small cap benchmark index, the Russell 2000. We believe RYLD is a great complement to our other covered call offerings, as investors continue to look for alternative sources of income.”

RYLD is the third ETF in Global X’s Covered Call suite of ETFs, joining the Global X Nasdaq 100 Covered Call ETF (QYLD) and the Global X S&P 500 Covered Call ETF (HSPX). The suite now totals over USD500 million in AUM as of 16 April, 2019.

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Ryan McCormack, Invesco
This year sees the 25th anniversary of Invesco’s QQQ, the USD240 billion ETF – the fifth largest ETF in the...
ETFs
The European ETF market achieved a record 28 per cent growth – reaching over USD1.8 trillion assets under management (AUM)...
Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by