The money manager Mirae Asset Global Investments will soon enter the fray in the U.S. markets as the company prepares to launch three new exchange traded funds based on covered-call strategies.
The Horizons ETF unit is adding three U.S.-listed index-based ETFs that are similar to the company’s actively managed covered-call ETFs in the Canadian market, reports Jackie Noblett for Ignites.
The covered-call strategy goes long in an asset and writes, or sells, call options on the same asset to generate income from the asset. The strategy is also known as a “buy-write.”
“In this income-thirsty world, the conversation we’ve had with investors all across the world is they can’t get it from plain bonds and stocks. And the covered-call ETF, that product doesn’t exist in quite the way we are doing it,” Howard Atkinson, global head of ETF sales and marketing for Mirae and president of the Toronto-based Horizons ETFs, said in the article.
The fund provider has ETF products trading in Canada, under Horizons; Australia, under BetaShares; Hong Kong and South Korea.
“If you look at the markets we’ve entered into, we’re usually the first or second to the market with a particular strategy. Coming out with a me-too product, that’s just a race to the bottom on management fees, and you have to be really big to compete there,” Atkinson added.