Global X Japan Launches NASDAQ 100 Daily Covered Call ETF on Tokyo Stock Exchange

Global X Japan Launches NASDAQ 100 Daily Covered Call ETF

On April 23, 2023, Global X Japan, a part of the Daiwa Securities Group, officially announced the listing of the Global X NASDAQ 100 Daily Covered Call ETF (Ticker: 563A) on the Tokyo Stock Exchange. This ETF is designed to follow the Nasdaq-100 Daily Covered Call Target Premium 15% Index (including dividends, converted to yen).

What sets the Global X NASDAQ 100 Daily Covered Call ETF apart is its innovative approach utilizing 1 Day to Expiration (1DTE) options, specifically focusing on a covered call strategy that is unprecedented in Japan. This strategy involves an investment technique that uses options trading to enhance dividends, aiming for an annual distribution yield of approximately 15%. Unlike existing ETFs employing similar strategies, this new product is structured to closely follow the upward movements of the Nasdaq 100 Index, promising strong performance in both income and capital appreciation.

Overview of the Fund

- Fund Name: Global X NASDAQ 100 Daily Covered Call ETF
- Ticker: 563A
- English Name: Global X Nasdaq 100 Daily Covered Call ETF
- Target Index: Nasdaq-100 Daily Covered Call Target Premium 15% Index (including dividends, converted to yen)
- Distribution Frequency: Monthly on the 10th (12 times a year)

Key Risks and Considerations

Investors should be aware that the fund invests in securities that exhibit price volatility, which may cause the net asset value to fluctuate. Therefore, there is no guarantee of the return of the original investment, and losses may occur. All profits and losses that arise from the trust property are attributed solely to the investors. This investment trust differs from traditional savings accounts, and the primary factors influencing the net asset value include:

- Market price fluctuations (price fluctuation risk and credit risk)
- Foreign exchange risk
- Country risk
- Risks associated with the covered call strategy
- Other unspecified risks

Copyright and Index Disclaimer

It’s important to note that this product is not sponsored, guaranteed, sold, or promoted by Nasdaq, Inc., or its affiliates (collectively referred to as the “Corporation”). The Corporation does not express any opinions regarding the legality, suitability, or accuracy of the product's representation and disclosure. Neither do they provide any express or implied guarantees regarding the performance tracking capability of the Nasdaq-100 Daily Covered Call Target Premium 15% Index compared to the broader stock market.

The relationship between the Corporation and the licensee, Global X Japan, concerns the copyright of certain trade names and the usage rights of the Nasdaq-100 Daily Covered Call Target Premium 15% Index. Furthermore, the Corporation is not obliged to consider the needs of the licensee or the product owners when determining the index's composition or calculation.

Fund Investment Structure

This fund invests in U.S. stocks and related derivatives through Korean-listed funds (investment target funds). As a result, it will be subject to the tax implications associated with these investments. Should foreign tax credits (double tax adjustments) apply, a part of this tax burden may be rectified. Moreover, since the fund’s net asset value is calculated based on after-tax distributions, discrepancies in tax burdens might negatively influence performance when compared to pre-tax based indices.

About Global X Japan

Established in September 2019, Global X Japan is a joint venture between Daiwa Securities Group, Daiwa Asset Management, and Global X Management Company, Inc. (USA). As Japan's first ETF-focused asset management company, it aims to meet a variety of investor needs with an innovative lineup of ETFs, now totaling 66 listed products.

For further details, please visit the official websites:

Contact Information for Inquiries

Global X Japan, Inc.

- For Media Inquiries: [email protected]
- For Investor Inquiries: [email protected]

Global X Japan, Inc. is a licensed financial services provider under the Kanto Finance Bureau, License No. 3174, and is a member of the Japan Investment Advisors Association.