Hong Kong Exchange Lists 2 Covered Call ETFs Tracking HSI & HSCEI Issued by Mirae Asset Global Investments, Covered Call Option Generates Additional I

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Hong Kong Exchange Lists 2 Covered Call ETFs Tracking HSI & HSCEI Issued by Mirae Asset Global Investments, Covered Call Option Generates Additional Income Known Option Premium by Selling a Call Option of a Security or Asset Held by the Investor, 2 New ETFs are Global X HSI Components Covered Call Active ETF & Global X HSCEI Components Covered Call Active ETF

29th February 2024 | Hong Kong

The Hong Kong Exchange (HKEX) has listed the first-ever covered call ETFs (Exchange-traded funds) with 2 covered call ETFs tracking HSI (Hang Seng Index) & HSCEI (Hang Seng China Enterprises Index) issued by Mirae Asset Global Investments (29/2/24), with the covered call option generating additional income known as option premium by selling a call option of a security or asset held by the investor.  The 2 new ETFs listed on Hong Kong Exchange are Global X HSI Components Covered Call Active ETF and Global X HSCEI Components Covered Call Active ETF.   Announcement: “Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to welcome today (Thursday) Hong Kong’s first-ever listings of Covered Call ETFs, further expanding its product ecosystem by offering Hong Kong and international investors with even more choice and opportunity.  The two new ETFs listed today – Global X HSI Components Covered Call Active ETF (Stock code: 3419) and Global X HSCEI Components Covered Call Active ETF (Stock code: 3416), both issued by Mirae Asset Global Investments (Hong Kong) Limited, primarily invest in constituent equity securities in the Hang Seng Index and the Hang Seng China Enterprises Index respectively.  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. This allows investors to benefit from potential asset appreciation up to the strike price, and during times of volatility, the options premiums can provide downside protection to investors.  Exchange Traded Products (ETPs), including ETFs and Leveraged and Inverse Products (L&I Products), are one of the fastest-growing segments in HKEX’s markets, with sustained growth momentum and a diversifying product ecosystem. Average daily turnover in the ETP market reached an all-time high of $14 billion in 2023, up 17 per cent from a year earlier.  Last November, Hong Kong welcomed the first Saudi Arabian ETF in Asia Pacific, which was also the world’s largest Saudi ETF with over $8 billion in asset under management, or AUM. In addition, the inclusion of ETFs in Stock Connect has further boosted the continued resilience of Hong Kong’s ETP market since its introduction in July 2022, with the average daily turnover of Southbound ETFs under Stock Connect accounting for 11 per cent of Hong Kong’s ETF market in 2023.  Further information about Hong Kong-listed ETPs is available on the HKEX website.”

“ Hong Kong Exchange Lists 2 Covered Call ETFs Tracking HSI & HSCEI Issued by Mirae Asset Global Investments, Covered Call Option Generates Additional Income Known Option Premium by Selling a Call Option of a Security or Asset Held by the Investor, 2 New ETFs are Global X HSI Components Covered Call Active ETF & Global X HSCEI Components Covered Call Active ETF “

 



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HKEX Head of Equities Product Development, Brian Roberts: “The two Covered Call ETFs listing today, the first of their kind in Hong Kong, are great additions to our diverse lineup of Exchange Traded Products. The use of covered calls is an increasingly popular investment strategy as investors look to diversify beyond traditional products, navigate potentially volatile markets and hedge downside risk.  This type of strategy typically requires a level of expertise and involves active trading. However, an ETF that incorporates a covered call strategy can help investors save time, generate passive income, and remove the complexity of managing downside risks on their own. We look forward to welcoming more of these and other ETFs to our markets in the coming months ahead.”

 

 

Hong Kong Exchange Lists 2 Covered Call ETFs Tracking HSI & HSCEI Issued by Mirae Asset Global Investments, Covered Call Option Generates Additional Income Known Option Premium by Selling a Call Option of a Security or Asset Held by the Investor, 2 New ETFs are Global X HSI Components Covered Call Active ETF & Global X HSCEI Components Covered Call Active ETF Hong Kong Exchange

About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.  As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.  HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.




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    Originally posted on: https://www.caproasia.com/2024/02/29/hong-kong-exchange-lists-2-covered-call-etfs-tracking-hsi-hscei-issued-by-mirae-asset-global-investments-covered-call-option-generates-additional-income-known-option-premium-by-selling-a-call-optio/?utm_source=rss&utm_medium=rss&utm_campaign=hong-kong-exchange-lists-2-covered-call-etfs-tracking-hsi-hscei-issued-by-mirae-asset-global-investments-covered-call-option-generates-additional-income-known-option-premium-by-selling-a-call-optio