Mirae Asset Global Investments (Hong Kong) has launched the Global X Hang Seng TECH Components Covered Call Active ETF (3417), which started trading on the Hong Kong Stock Exchange on Thursday.
The ETF tracks the Hang Seng TECH Index constituents and incorporates a covered call strategy, seeking to offer investors monthly dividend distribution opportunities, according to a statement by the asset manager.
The covered call strategy aims to generate income through writing call options. While the strategy limits the potential for upside gains, it offers partial downside protection through option premium when market declines.
Wanyoun Cho, chief executive officer of Mirae Asset Global Investments (Hong Kong), said: ” We are pleased to launch our third covered call strategy ETF, the Global X Hang Seng TECH Components Covered Call Active ETF (3417), designed as a balanced solution for investors who are bullish on Hang Seng TECH stocks but want to avoid volatility, especially when they lack a clear direction during market fluctuations.”
The ETF employs an actively managed investment strategy. In addition to seeking to obtain exposure to the constituent equity securities in the reference index, the fund also writes call options on the reference index.
The base currency of the Fund is Hong Kong dollars, but the class currencies of the shares are in Hong Kong dollars, renminbi and US dollars.
Mirae’s global ETF platform features a line-up of 629 ETFs and have combined AUM of $137bn and are listed in Australia, Canada, Colombia, Hong Kong, India, Japan, Korea, Vietnam, the EU, and the United States, according to the firm.
