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About Global X Funds Global X MLP & Energy Infrastructure Covered Call ETF
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Inception date
May 8, 2024
Structure
Open-Ended Fund
Distributes
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Tax on distributions
Ordinary income
Primary advisor
Global X Management Co. LLC
Distributor
SEI Investments Distribution Co.
MLPD aims to provide growth potential and yield by combining long positions in the Global X MLP & Energy Infrastructure ETF (MLPX) with short-covered call options, in equal notional amounts. MLPX is a vanilla ETF comprised of at least 20 US-listed midstream energy infrastructure MLPs and corporations. The fund maintains a theoretical portfolio of stocks from the reference index, while also writing a succession of one-month, at-the-money FLEX call options on each share. These call options represent 100% of the portfolio value and are held until expiration, either expiring or settling in cash. Additionally, these contracts are collateralized by the equity portfolio. While this strategy potentially generates income through the options premium, it does place a drag on the appreciation potential. The index is rebalanced quarterly in February, May, August, and November.
Classification
What's in the fund
Exposure type
ETF
Stock breakdown by region
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