Global X ETFs announced that amid intensifying global market volatility, Hong Kong investors will welcome an innovative ETF product - the Global X S&P 500 Covered Call Active ETF (03415), which will be listed in Hong Kong on August 29, 2025. This ETF not only allows investors to participate in U.S. stock growth but also generates stable cash flow through options strategies while providing significant tax advantages.

For Hong Kong investors, Hong Kong-listed ETFs have substantial tax advantages over their U.S.-listed counterparts regarding dividend taxation. As non-U.S. tax residents, Hong Kong investors must pay a 30% withholding tax (WHT) on cash dividends distributed by U.S. stocks and ETFs. Although partial tax refunds can be applied for through specific procedures, the process is typically cumbersome and complex. Additionally, Hong Kong investors are not subject to capital gains tax whether holding U.S.-listed or Hong Kong-listed ETFs. Therefore, the after-tax dividend yield of Hong Kong-listed ETFs can reach 100%, while U.S.-listed ETFs retain only 70% of returns after standard withholding tax.

The Global X S&P 500 Covered Call Active ETF employs a covered call options strategy, generating option premium income by investing in S&P 500 index constituent stocks and selling corresponding call options. The "covered call options strategy" is an investment approach that generates regular potential cash flow by selling options to earn option premiums. The principle involves investors holding underlying stocks or index components while simultaneously selling call options on those stocks or indices (where option buyers have the right to purchase a specified amount of underlying assets from the seller at an agreed price within an agreed timeframe), thereby collecting option premiums as additional income.

This strategy performs particularly well in volatile market conditions: when markets decline, option premium income can offset some losses, making it outperform the underlying assets; during market fluctuations, increased volatility leads to higher option premiums, creating excess returns. However, when markets rise, the main income source remains the option premium income from selling call options, and investors cannot enjoy the gains from underlying asset appreciation.

The covered call options strategy itself involves complex option trading operations that are both time-consuming and costly for ordinary investors. Through the ETF format, investors can participate in this strategy with low costs and high transparency, easily accessing professional-grade risk management tools.

Global X's launch of the S&P 500 covered call options ETF in Hong Kong provides local Hong Kong investors with an innovative investment tool that enables participation in U.S. stock growth, generates regular income, and offers tax advantages, helping investors better preserve and grow their assets in volatile markets.