New buffer ETFs from Global X on Xetra: access to the equity returns of the S&P 500 index with protection against downside risks
Since Thursday, two new exchange-traded funds from Global X have been tradable on Xetra and via the trading venue Börse Frankfurt.
Global X is expanding its range of buffer ETFs with the two new Global X S&P 500 Annual Buffer UCITS ETF and Global X S&P 500 Annual Tail Hedge UCITS ETF. Both ETFs track the equity returns of the S&P 500 Index and utilise the income from option premiums to limit the risk of loss.
The Global X S&P 500 Annual Buffer UCITS ETF buys at-the-money put options and simultaneously sells 15 percent out-of-the-money put options to hedge price losses of up to 15 percent. The cost of hedging the price risk is also covered by the sale of call options, which limit potential price gains.
The Global X S&P 500 Annual Tail Hedge UCITS ETF, on the other hand, only hedges price declines of 5 percent to 35 percent. Potential price gains are also limited by the sale of call options to finance the hedge.
The buffer strategy of both ETFs is designed for a period of one calendar year, i.e. the buffer can vary after the start date. Investors can find the current buffer on the website of Global X.
|
Name |
Asset class |
ISIN |
On-going charges |
Distribution policy |
Reference index |
|
Global X S&P 500 Annual Buffer UCITS ETF |
Equity ETF |
0.50 per cent |
accumulating |
CBOE S&P 500 Annual 15% Buffer Protect Index |
|
|
Global X S&P 500 Annual Tail Hedge UCITS ETF |
Equity ETF |
0.50 per cent |
accumulating |
CBOE S&P 500 Annual 30% (-5% to -35%) Buffer Protect Index |
The product offering in Deutsche Börse's XTF segment currently comprises a total of 2,122 ETFs. With this selection and an average monthly trading volume of around €16 billion, Xetra is the leading trading venue for ETFs in Europe.