Global X Nasdaq 100 ESG Covered Call ETF (QYLE US) – Portfolio Construction Methodology

The underlying Nasdaq-100 ESG BuyWrite Index targets a fully covered call strategy on a Nasdaq-100–derived ESG equity basket. On the equity side it holds the Nasdaq-100 ESG Index, which selects Nasdaq-100 constituents meeting minimum liquidity and free-float criteria and excludes issuers with defined ESG controversies or business involvements, then weights remaining stocks by float-adjusted market cap using a modified-cap framework that applies issuer-level caps to limit concentration. The reference equity index is rebalanced on a regular quarterly schedule with an annual comprehensive review of membership. On the options side the index sells a succession of one-month, at-the-money call options on the Nasdaq-100 Index over approximately 100% of the equity notional, using exchange-traded, cash-settled, European-style contracts. Option positions are held to expiry and rolled monthly, leaving the index unlevered and continuously fully covered by the underlying equity portfolio.

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