#Japan #Tokyo #ETF #Global X Japan #China Tech

Global X Japan Launches New ETF

Global X Japan, a subsidiary of Daiwa Securities Group, is set to make waves in the financial markets with its newly approved product: the Global X China Tech Covered Call ETF, trading under the symbol 576A. The Tokyo Stock Exchange has granted regulatory approval for this innovative exchange-traded fund (ETF), which is scheduled to debut on May 28, 2026.

Focus on China Tech

This ETF will primarily invest in investment certificates of the Global X Hang Seng TECH Covered Call Active ETF, which is listed in Hong Kong. This marks a notable advancement as it becomes the first domestic ETF in Japan focusing on covered call strategies that target Hong Kong equities.

How the Strategy Works

Investors can benefit from covered call strategies, a method where the underlying assets are held while simultaneously selling corresponding call options. The premium received from these option sales serves as the main income source, providing a unique investment approach. Specifically, this ETF will focus on the Hang Seng TECH Index, comprising 30 prominent technology companies traded on the Hong Kong Stock Exchange.

Monthly Distributions

The ETF is designed to distribute earnings monthly, specifically on the 10th of each month, with a total of 12 distributions a year. Investors will receive dividends sourced mainly from the premiums collected through the sale of these call options.

Understanding Risks

However, potential investors should be aware that investment in this fund does come with risks. The value of the underlying securities can fluctuate significantly, impacting the fund's performance. Notably, the fund's net asset value is not guaranteed and may fall below the initial investment amount. Important risks to consider include:

• - Market risks such as price fluctuations and credit risks
• - Currency risk involved in exchange rates
• - Country-specific risks related to Hong Kong investments
• - Risks associated with the covered call strategy

The risks listed are not exhaustive, and investors are encouraged to conduct a comprehensive risk assessment.

Licensing and Intellectual Property

It’s important to note that the Hang Seng TECH Index is published and calculated under a license from Hang Seng Data Services Limited. Global X Japan is authorized to use this index in connection with its ETF; however, Hang Seng Indexes Company Limited and Hang Seng Data Services Limited do not endorse, guarantee, or provide any assurances regarding the accuracy of the index or its applications.

About Global X Japan

Founded in 2019, Global X Japan is a joint venture amongst Daiwa Securities Group, Daiwa Asset Management, and Global X Management Company Inc. of the United States. As Japan's pioneer ETF asset management company, they aim to meet diverse investment needs with a broad selection of innovative ETFs, expanding their listed offerings to 66 ETFs.

For more information, visit Global X Japan’s official website and subscribe to their YouTube channel.

Contact Information

For inquiries regarding the ETF, interested parties may contact Global X Japan:

• - For media inquiries: [email protected]
• - For investor inquiries: [email protected]

Regulatory Information

Global X Japan is registered with the Kanto Financial Bureau as a financial instruments business, with license number 3174 and is a member of the Japan Investment Advisers Association.