The Global X Asymmetric Smart Beta ETF (MORE) seeks to provide investors with long-term capital appreciation by investing in a portfolio of US equities, while also seeking to generate yield from selling call options on the equity portfolio.
The fund's investment strategy focuses on US large-cap stocks, with a primary emphasis on companies with above-average dividend yields, strong profitability, and low volatility. MORE utilizes a rules-based approach to construct the equity portfolio, which is designed to minimize turnover and transaction costs.
In addition to its equity holdings, the fund will also sell call options on its equity portfolio in an effort to generate income. By selling call options, the fund seeks to take advantage of the volatility risk premium, which has historically provided option sellers with an additional source of income over time.
As of the end of February 2023, the fund had a total net asset value of approximately $20 million and held positions in 48 different stocks. The fund's largest holdings included well-known companies such as Microsoft Corp, Procter & Gamble Co, and JPMorgan Chase & Co.
Investors should note that this fund may be more suitable for those seeking a long-term investment strategy, as it may not be suitable for short-term traders due to the call options strategy. Additionally, investors should consider the risks associated with investing in equities, including market risk, sector risk, and liquidity risk, among others. It is important to read and understand the fund's prospectus before making any investment decisions.
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