Global X NASDAQ 100® Collar 95-110 ETF (QCLR)

Overview

The Global X NASDAQ 100u00ae Collar 95-110 ETF (QCLR) is a strategy ETF designed to provide investors with exposure to the NASDAQ 100 Index while implementing a collar option strategy. This involves buying put options to protect against downside risk and selling call options to generate income, capping potential upside.

Reputation and Reliability

Global X ETFs is known for its innovative and thematic ETF offerings, with a solid reputation in the ETF market.

Management Expertise

Global X has a team of experienced professionals in investment management, product development, and options strategies.

Goal

To provide investment results that correspond generally to the price and yield performance of the NASDAQ 100 Index while mitigating downside risk and generating income through a collar option strategy.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy related to the NASDAQ 100 index, incorporating a collar strategy with approximately 95% downside protection and 110% upside participation.

Composition The ETF's assets primarily consist of derivatives linked to the NASDAQ 100 Index along with call and put options. The holdings are rebalanced periodically to maintain the target protection and participation levels.

Market Share: QCLR's market share is moderate, as it caters to a specific investor segment seeking downside protection and income generation.

Total Net Assets (AUM): 52000000

Key Competitors

• Innovator Equity Defined Protection ETF (TJUL)
• Simplify US Equity PLUS Convexity ETF (SPCX)
• FT Cboe Vest U.S. Equity Deep Buffer ETF - August (DAUG)

Competitive Landscape

The competitive landscape involves other ETFs that offer downside protection or utilize option strategies. QCLR competes on the specific collar strategy and the underlying NASDAQ 100 Index. Advantages include the targeted protection and income features, but disadvantages could be capped upside potential and the complexity of the strategy.

Historical Performance: Historical performance varies depending on market conditions and the effectiveness of the collar strategy. Returns are generally lower than the unhedged NASDAQ 100 during bull markets but can outperform during corrections.

Benchmark Comparison: Performance is compared against the NASDAQ 100 Index, adjusted for the impact of the collar strategy. The benchmark provides a reference point for the cost of protection and the potential for income generation.

Expense Ratio: 0.6

Average Trading Volume

QCLR's average trading volume is moderate, which may affect the ease of entering and exiting large positions.

Bid-Ask Spread

The bid-ask spread is generally moderate, depending on market conditions and trading volume, representing the transaction cost.

Market Environment Factors

Economic indicators, interest rates, and market volatility influence the pricing of options and the effectiveness of the collar strategy.

Growth Trajectory

The growth trajectory depends on investor demand for downside protection and income generation within the technology sector.

Competitive Edge

QCLR's competitive edge lies in its targeted collar strategy, offering investors a structured approach to managing risk and generating income. Its focus on the NASDAQ 100 provides exposure to leading technology companies, while the defined protection and participation levels offer a degree of predictability. The ETF is designed for investors who prioritize downside protection and income over maximizing potential upside returns. However, in strongly bullish environments, the capped upside participation may underperform the underlying index. The ETF's transparent and rules-based approach distinguishes it from actively managed option strategies.

Volatility

QCLR exhibits lower volatility compared to the unhedged NASDAQ 100 due to the downside protection provided by the put options.

Market Risk

The ETF is subject to market risk, particularly related to the performance of the NASDAQ 100 Index and the pricing of options. Changes in market sentiment, interest rates, and economic conditions can affect the ETF's value.

Ideal Investor Profile

QCLR is suited for risk-averse investors, income-seeking investors, or those concerned about market volatility who want exposure to the NASDAQ 100.

Market Risk

QCLR is best for long-term investors who prioritize capital preservation and income generation over maximizing potential gains.

The Global X NASDAQ 100u00ae Collar 95-110 ETF provides access to the NASDAQ 100 Index while implementing a collar strategy. Its primary goal is to mitigate downside risk and generate income through options. The ETF is suitable for investors seeking downside protection and capital preservation. QCLR has a moderate expense ratio and is subject to market risks related to the underlying index. It is a suitable option for investors with a conservative risk appetite.

Data Sources:

• Global X ETFs Website
• ETF.com
• Morningstar
• FactSet

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results.