Global X has expanded its defined outcome S&P 500 ETF range with the launch of two strategies aiming to protect investors from downside risks of the S&P 500 on a yearly basis.
The Global X S&P 500 Annual Buffer UCITS ETF (SPAB) and the Global X S&P 500 Annual Tail Hedge UCITS ETF (SPAH) are listed on the London Stock Exchange and Deutsche Boerse with total expense ratios (TERs) of 0.50%.
SPAB tracks the CBOE S&P 500 Annual 15% Buffer Protect index which aims to absorb the first 15% of losses on the S&P 500 each year while also looking to provide capital growth up to a cap.
SPAH tracks the CBOE S&P 500 Annual 30% (-5% to -35%) Buffer Protect index which targets a 30% buffer on the S&P 500 after the first 5% of losses.
Rob Oliver (pictured), head of business development for Europe at Global X, commented: “Amid significant market uncertainty, more investors are seeking to protect their portfolios against sharp equity downturns and maintain defined levels of risk.
“Global X’s latest defined outcome strategies can help investors achieve these goals and highlight our firm’s long-term commitment to the European market through innovative ETF solutions.”
Global X launched its first defined outcome ETFs in Europe in February, the Global X S&P 500 Quarterly Buffer UCITS ETF (SPQB) and the Global X S&P 500 Quarterly Tail Hedge UCITS ETF (SPQH).
The firm also launched a covered call S&P 500 ETF, the Global X S&P 500 Covered Call UCITS ETF (XYLU), in July which offers investors downside protection via covered calls, a process that involves selling a call option on a stock that you already own.
In November, it unveiled its first covered call ETF, the Global X Nasdaq 100 Covered Call UCITS ETF (QYLD).