Global X HSCEI Covered Call Active ETF

Global X HSCEI Covered Call Active ETF is an actively managed exchange-traded fund designed to generate income through a covered call strategy. It primarily invests in constituent equity securities of the Hang Seng China Enterprises Index (HSCEI), which tracks major Chinese enterprises listed in Hong Kong, and sells call options on the index to collect premiums. This approach provides downside protection from option premiums during market declines but caps upside potential beyond the strike prices plus premiums received. Key holdings include prominent names like Tencent Holdings, China Construction Bank, Xiaomi, Meituan, and China Mobile, reflecting concentration in technology, financials, and consumer sectors. Launched on February 28, 2024, by Mirae Asset Global Investments under the Global X brand, the ETF features a fixed 0.75% ongoing charge, monthly dividend distributions with a high indicated yield around 15.56%, and trades in HKD, RMB, and USD counters. With assets under management exceeding HKD 10 billion, it plays a significant role in offering income-focused exposure to China-related equities amid volatile markets.