Mirae Asset Global Investments (Hong Kong) launched an exchange-traded fund (ETF) combining high dividend stocks and a call option overly on Thursday.

The Global X Hang Seng High Dividend Yield Enhanced Income ETF is listed as 3555 (HKD) on the Hong Kong Stock Exchange and will also be tradeable in USD and RMB.

The ETF marks the first of its type in Hong Kong combining high-dividend equities and option premium income via a covered call strategy.

It will invest at least 70% of its assets into securities of the Hang Seng High Dividend Yield Index and/or the Global X Hang Seng High Dividend Yield ETF to capture dividends and capital appreciation.

It will also sell call options on the Hang Seng Index and/or Hang Seng China Enterprises Index with a notional value of between between 30% to 50% of its net asset value (NAV).

Dennis Fok, Co-Chief Executive Officer and Chief Investment Officer, ETF, at Mirae Asset Global Investments (Hong Kong) Limited, said: “In today’s volatile market environment, investors are increasingly seeking relatively stable sources of cash flow.”

“The Global X Hang Seng High Dividend Yield Enhanced Income ETF seeks to enhance income generation through option writing while maintaining upside participation during market rallies.”