Mirae Asset Global Investments ( Hong Kong ) Limited has launched the Global X Hang Seng TECH Components Covered Call Active ETF, which started trading on Thursday ( March 13 ) on the Hong Kong Stock Exchange.

The exchange-traded fund ( 3417.HK ) tracks the Hang Seng TECH Index constituents and incorporates a covered call strategy, aiming to offer investors monthly dividend distribution opportunities. ( Dividend rate is not guaranteed, and distributions may be made out of capital. )

Covered call ETF is considered an effective investment vehicle to help investors navigate market turbulence. Covered call strategy seeks to generate income through writing call options, which historically produces higher yields in periods of volatility.

Wanyoun Cho, chief executive Officer of Mirae Asset Global Investments ( HK ), says: “We are pleased to launch our third covered call strategy ETF, the Global X Hang Seng TECH Components Covered Call Active ETF, designed as a balanced solution for investors who are bullish on Hang Seng TECH stocks but want to avoid volatility, especially when they lack a clear direction during market fluctuations.”

While the strategy limits the potential for upside gains, it offers partial downside protection through option premium when market declines, making it a balanced approach for investors navigating uncertain conditions. This ETF writes call options on Hang Seng TECH Index, saving investors the time and potential expenses of doing so individually.