Global X S&P/ASX 200 Covered Call ETF

The Global X S&P/ASX 200 Covered Call ETF, with the ticker AYLD, is designed to provide investors with exposure to the top 200 companies listed on the Australian Securities Exchange. This ETF follows a covered call strategy, which means it not only invests in these leading companies but also sells call options on them. This approach aims to generate additional income through the premiums received from selling these options, potentially enhancing returns, especially in flat or moderately rising markets. However, it may limit the upside potential if the market experiences significant gains. With a management fee of 0.60%, this ETF is suitable for investors looking for income and some exposure to the Australian stock market.

AYLD invests primarily in Australian equities, specifically focusing on the S&P/ASX 200 Index. This index comprises large-cap companies across various sectors, including financials, materials, healthcare, and consumer staples, ensuring broad market exposure. The ETF's strategy includes writing covered call options on these equities, which can enhance income potential. The underlying holdings typically feature well-established companies, providing a mix of growth and stability, making AYLD an appealing choice for those seeking to optimise yield while maintaining equity exposure.