Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Global X Gold Producer Equity Covered Call ETF T.GLCC

Alternate Symbol(s):  HEPZF



TSX:GLCC - Post by User

Comment by moneymotivatoron Aug 25, 2011 5:15pm
214 Views
Post# 18980128

RE: RE: RE: RE: RE: Distribution July 19%

RE: RE: RE: RE: RE: Distribution July 19%The more I think about it, this fund would likely not provide any upside to a rise in gold equities prices since:

"To mitigate downside risk and generate income, HEP will generally write covered call options on 100% of the portfolio securities. The level of covered call option writing may vary based on market volatility and other factors."

https://www.horizonsetfs.com/pub/en/etfs/?etf=HEP&r=o

In a strong gold equity market the fund would be forced to sell likely the majority of its gold producer holdings at a discount and then have to buy them back at a premium again and again as the funds call options are exersiced. Wouldn't mind hearing other posters opinions in regards to this risk?
Bullboard Posts