Outperformance of Covered Call ETFsCovered call ETFs (XYLD, QYLD, and RYLD) have significantly outperformed their tracking indexes (SPY, QQQ, and IWM) this year.
Key stats
About Global X Russell 2000 Covered Call ETF
Expense ratio
0.60%
Home page
Inception date
Apr 17, 2019
RYLD tracks the Russell 2000 index while holding a succession of one-month at-the-money option of the index. The fund follows a buy-write (or covered call) strategy on the underlying index, where it buys the constituent securities of the index, or purchases other investments with substantially identical economic characteristics. At the same time, the fund writes (or sells) call options that correspond to the index. This strategy has a few effects. One, the obligation of the sold calls limits the upside of the overall fund, and two, the premium income from the written calls protects the fund against stagnant prices or small losses.
Classification
What's in the fund
Exposure type
ETF
Stock breakdown by region
Displays a symbol's price movements over previous years to identify recurring trends.