Income ETFs have become a key part of the ETF landscape in recent years. With their ability to use tools like call options and FLEX options, as well as dividend-focused stocks, income ETFs can help investors meet their goals. Global X and Rex Shares are just the latest to add to the income fund roster with new launches this week.
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Global X Asset Management launched two new income ETFs this week, adding options-based ETFs targeting weekly distributions. The firm has added the Global X Nasdaq-100® Income EdgeSM ETF (EDGQ) and the Global X U.S. 500 Income EdgeSM ETF (EDGX) that actively invest in stocks from the Nasdaq-100 Index and the Solactive GBS United States 500 Index, respectively.
By using covered calls, the funds aim to provide distribution rates of 13% and 9%, respectively. Charging 50 basis points (bps) each, they have waived fees to zero until March 2027. The launches bring the firm’s income ETF lineup to some 16 strategies. That includes seven 100% covered call funds and seven 50% covered call and growth strategies.
“The derivative income ETF space has experienced remarkable growth and innovation over the past few years, and as leaders in this evolving landscape, we’re excited to introduce strategies that seek to deliver targeted, weekly distributions while enabling upside participation,” said Pedro Palandrani, Head of Product Research & Development at Global X.
Income ETFs on the Rise
Rex Shares also launched the REX Autocallable Income ETF (ATCL) this week. The strategy, supported by CAIS, RBC Capital Markets, and Bloomberg Index Services Limited, looks to meet the demand for income ETFs. ATCL aims to provide rules-based exposure without relying on traditional credit or extended-duration exposure. Using the Bloomberg US Large Cap VolMax Autocallable Total Return Index, it looks to replicate the performance of a systematic laddered portfolio of autocallable derivative positions
“Our collaboration allows us to deliver a thoughtfully engineered outcome-oriented strategy in a single autocallable ETF,” said Greg King, CEO and Founder of REX Shares. “This approach emphasizes broader diversification and disciplined ETF construction, pursuing a synthetic autocallable strategy to generate consistent income within a well-defined risk framework.”
Together, the three income ETFs add to an increasingly key fund segment. For investors looking to add some current income, the likes of EDGQ, EDGX, and ATCL all may be worth watching.
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