London-based ETF sponsor Global X ETFs Europe has launched a covered call UCITS ETF which tracks the Euro Stoxx 50 Covered Call ATM (At The Money) Index.
The index is designed to measure the performance of a hypothetical portfolio reflecting a covered call investment strategy based on the Euro Stoxx 50 Index, a blue-chip index for the Eurozone.
It reflects a strategy in which an investor buys the index as an underlying instrument and simultaneously sells a Euro Stoxx 50 ATM call option, traded at Eurex.
“Covered call strategies have provided a way for investors to receive an alternative income stream that is driven mainly by market volatility,” said Rob Oliver, Head of Global X Europe.
“The Euro Stoxx 50 Covered Call is our third covered call UCITS product and may be attractive to investors looking to receive monthly income whilst being invested in European stocks.”
