Product roundup: Global X unveils copper ETF with covered call strategy
Its top holdings, by weight, include the Global X Copper Miners ETF (NYSE: COPX), Ivanhoe Mines Ltd., First Quantum Minerals Ltd., Teck Resources Ltd. and Southern Copper Corp.
The fund also features an actively managed covered call strategy, which is designed to generate potential monthly income and reduce volatility, said Raghav Mehta, vice-president, ETF strategy with Global X in Toronto.
“A lot of clients, institutional allocators and wealth management advisors might shy away from holding copper producer stocks or the metal itself, copper, because it does not pay a yield or any income cash flow associated with that. So, we wanted to turn [this fund] into a cash-flow generating asset by using a covered call…
