Toronto-based Horizons Exchange Traded Funds Inc. and Oklahoma City-based Exchange Traded Concepts, LLC have filed a registration statement with the U.S. Securities and Exchange Commission to issue three covered call exchange traded funds in the United States.
The Horizons branded covered call ETFs are based on new indices from S&P Indices that seek to increase yield and mitigate downside risk by using covered calls on the individual constituent securities in the indices.
The ETFs are: Horizons S&P 500 Covered Call ETF; Horizons S&P Financial Select Sector Covered Call ETF; and Horizons S&P Energy Select Sector Covered Call ETF.
Horizons ETFs will use ETC to list the ETFs in the U.S. ETC, a U.S. private-label ETF advisor, will serve as manager and investment adviser to the ETFs. Mirae Asset Global Investments (USA) LLC, the sub-adviser to the ETFs, and Horizons ETFs are both subsidiaries of Mirae Asset Global Investments Co., Ltd.
Horizons has been an active sponsor of ETFs in Canada, with more than 80 ETFs listed on the Toronto Stock Exchange and$3.3 billion in assets under management. These new ETFs will be the first ETFs listed in the U.S. market that will carry the Horizons brand name.
“We’ve had tremendous success in the Canadian market with our unique covered call ETFs, that use a dynamic buy-write process to reduce the risks associated with stock investing and generate monthly income,” says Howard Atkinson, CEO of Horizons ETFs. “We see the United States as a natural market for the extension of our firm’s current ETF line-up and believe that these innovative income generating strategies will be well-received by U.S. investors.”