TORONTO – May 29, 2024 – Global X Investments Canada Inc. (“Global X”) is pleased to announce the launch of three new ETFs: the Global X Enhanced MSCI EAFE Covered Call ETF (“EACL”), the Global X Enhanced MSCI Emerging Markets Covered Call ETF (“EMCL”), and the Global X All-Equity Asset Allocation ETF (“EQCC” and together, the “ETFs”). Units of the ETFs begin trading today on the Toronto Stock Exchange (“TSX”) and Cboe Canada, as applicable.
EACL and EMCL are lightly-leveraged covered call funds with an international focus and the latest additions to the Global X Equity Essentials suite, which is comprised of funds that offer Canadian, U.S. and global exposure to the major indices managed by the world’s leading index providers, including MSCI, Nasdaq and S&P. Each Equity Essentials ETF uses up to three strategy overlays to help investors optimize their risk exposure and performance potential through low-cost benchmark tracking, 1.25 times leverage (“1.25x”) to potentially amplify returns, and options-writing to potentially enhance income.
“In our globally connected world, significant investment opportunities can happen anywhere, whether in mature economies or within emerging markets – it’s just a matter of being ready for them,” said Rohit Mehta, President and CEO of Global X. “Our new ETFs, EACL and EMCL, allow Canadians to harness the benefits of international exposure within their portfolio, while also realizing the potential for greater growth and income through their covered call and light leverage overlays.”
EQCC is a new all-equity covered call strategy within the Global X Asset Allocation suite, which is comprised of funds that offer both equity and fixed income exposure across global markets through a single ETF. In addition to differentiated exposure based on conservative, balanced, growth and equity focused strategies, the Global X Asset Allocation suite also offers Canadians the opportunity to access these portfolios with 1.25x leverage and covered-call overlays as well.
“Today, Global X has one of Canada’s largest asset allocation suites, ranging from conservative allocations to solutions tailored for growth, with each able to offer global diversification through a single trade,” said Mr. Mehta. “With EQCC, investors can take an all-equity investing approach with the benefit of additional income generated through its covered call strategy.”
The new ETFs are further described in the table below:
| ETF Name and Ticker | Investment Objective | Exchange | Management Fee* |
|---|---|---|---|
| Equity Essentials | |||
| Global X Enhanced MSCI EAFE Covered Call ETF (“EACL”) | EACL seeks to provide, to the extent reasonably possible and net of expenses: (a) exposure to the performance of an index of large and mid-cap securities across developed markets including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada (currently, the MSCI EAFE Index); and (b) high monthly distributions of dividend income and call option premiums. To generate premiums, EACL will be exposed to a dynamic covered call option writing program. EACL will also employ leverage (not to exceed the limits on use of leverage described under “Investment Strategies”) through cash borrowing and will generally endeavour to maintain a leverage ratio of approximately 125%. | Cboe Canada | 0.75% |
| Global X Enhanced MSCI Emerging Markets Covered Call ETF (“EMCL”) | EMCL seeks to provide, to the extent reasonably possible and net of expenses: (a) exposure to the performance of an index of large and mid-cap securities across emerging markets (currently, the MSCI Emerging Markets Index); and (b) high monthly distributions of dividend income and call option premiums. To generate premiums, EMCL will be exposed to a dynamic covered call option writing program. EMCL will also employ leverage (not to exceed the limits on use of leverage described under “Investment Strategies”) through cash borrowing and will generally endeavour to maintain a leverage ratio of approximately 125%. | Cboe Canada | 0.85% |
| Asset Allocation | |||
| Global X All-Equity Asset Allocation Covered Call ETF (“EQCC”) | EQCC seeks to provide a combination of a high level of income and long-term capital growth, primarily by investing in exchange traded funds that provide exposure to a globally diversified portfolio of equity securities. To generate premiums, EQCC will be exposed to a dynamic covered call options writing program. | TSX | 0.49% |
*Plus applicable sales tax
Two of the three ETFs launched today – EACL and EMCL (the “Enhanced ETFs”) – use leverage, a strategy that can potentially magnify both gains and losses. These Enhanced ETFs aim to generate approximately 1.25x the return of their underlying index.
To do this, each of the Enhanced ETFs create leverage using cash borrowing and invests, on a leveraged basis, in a related ETF managed by Global X. To ensure risk is limited to the capital invested, each of the Enhanced ETFs is regularly monitored and seeks to maintain a leverage ratio of approximately 125%, or 1.25x, of its net asset value (“NAV”).
The launches of the ETFs follow the completion of the rebrand to Global X Investments Canada Inc. from Horizons ETFs Management (Canada) Inc., which was effective on May 1, 2024 and the launch of 14 other funds throughout May 2024.
The ETFs closed their initial offering of units to their designated broker at the close of business on May 28, 2024, and will begin trading today on the TSX and Cboe Canada.
About Global X Investments Canada Inc. (www.GlobalX.ca)
Global X Investments Canada Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Global X product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Global X has more than $30 billion of assets under management and 125 ETFs listed on major Canadian stock exchanges. Global X is a wholly owned subsidiary of the Mirae Asset Financial Group, which manages more than $800 billion of assets across 19 countries and global markets around the world.
For investor inquiries:
Please contact Global X at 1-866-641-5739 (toll-free) or (416) 933-5745
[email protected]
For media inquiries:
Contact Jonathan McGuire
Vice President, Communications
Global X Investments Canada Inc.
(647) 289-3324
[email protected]
Commissions, management fees, and expenses all may be associated with an investment in products (the “Global X Funds”) managed by Global X Investments Canada Inc. The Global X Funds are not guaranteed, their values change frequently and past performance may not be repeated. Certain Global X Funds may have exposure to leveraged investment techniques that magnify gains and losses which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Such risks are described in the prospectus. The Global X Money Market Funds are not covered by the Canada Deposit Insurance Corporation, the Federal Deposit Insurance Corporation, or any other government deposit insurer. There can be no assurances that the money market fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the Funds will be returned to you. Past performance may not be repeated. The prospectus contains important detailed information about the Global X Funds. Please read the relevant prospectus before investing.
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