Global X Funds Global X Information Technology Covered Call & Growth ETF(AMEX:TYLG)

TYLG provides both the potential for growth and some yield from an index of technology stocks in the S&P 500. The fund utilizes a partial covered call strategy, it holds a theoretical portfolio of stocks of the reference index (or a related ETF) and writes one-month, at-the-money FLEX call options on half of the portfolio value. The call options sold by the fund are European-style, meaning the options can only be exercised at the expiration date each month. The contracts will be collateralized by the equity portfolio. The fund looks to earn some premium income from half of the portfolio while allowing the other half upside potential. The funds strategy should reduce volatility and help generate some income, compared to the reference index, but it may also cause a drag on the overall upside potential.