In an economy where investors seek income but are wary of interest rate risk, Global X‘s newest ETF is betting that Treasuries can deliver both.
The new Global X Treasury Bond Enhanced Income ETF (BATS:TLTX) seeks to maximize U.S. government bond debt through the addition of a tactical twist: weekly writing of covered calls. The fund leverages both classic exposure to Treasuries and Treasury STRIPS, as well as short-duration options on Treasury ETFs, to generate premium income that mitigates the impact of interest rate increases.
