The GX Health Care Covered Call & Growth ETF (HYLG) is an exchange-traded fund that invests in healthcare companies and generates income by selling covered call options on some of the underlying securities in the portfolio. The ETF is managed by Global X Management Company and seeks to provide investment results that correspond to the price and yield performance of the CBOE S&P Health Care BuyWrite Index.
The CBOE S&P Health Care BuyWrite Index is a benchmark index that measures the performance of a hypothetical buy-write strategy on the S&P Health Care Select Sector Index. The buy-write strategy involves buying a portfolio of healthcare stocks and selling call options on those stocks in order to generate additional income.
HYLG seeks to provide investors with exposure to the healthcare sector while also generating additional income through the sale of covered call options. Covered call options involve selling call options on underlying securities that an investor already owns, in exchange for a premium. If the price of the underlying security rises above the strike price of the call option, the investor may be required to sell the security at the strike price. If the price of the underlying security does not rise above the strike price, the investor keeps the premium and continues to hold the security.
As of February 18, 2023, HYLG had total net assets of approximately $1.4 billion and held 57 securities in its portfolio. The ETF's top holdings included UnitedHealth Group Inc., Amgen Inc., and CVS Health Corp. HYLG has an expense ratio of 0.60%.
|
