Global X Expands Income Suite with Launch of the Global X MSCI Emerging Markets Covered Call ETF (EMCC)

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Nov 08, 2023, 09:45 ET

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

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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

SOURCE Global X Management Company LLC