Covered Call ETFs debut in HKEX

Mirae Asset Global Investments issued the new ETFs.

Hong Kong Exchanges and Clearing Limited (HKEX) welcomed its first-ever listings of Covered Call ETFs, with the debut of Global X HSI Components Covered Call Active ETF (Stock code: 3419) and Global X HSCEI Components Covered Call Active ETF (Stock code: 3416).

Mirae Asset Global Investments (Hong Kong) Limited issued both ETFs.

“A covered call is a strategy where an investor sells call options on an asset they already own, generating income in the form of a premium,” HKEX explained.

Such a strategy allows investors to benefit from potential asset appreciation up to the strike price.

“During times of volatility, the option premiums can provide downside protection to investors,” HKEX added.