- Roundhill Investments has launched the Magnificent Seven Covered Call ETF (MAGY) on Cboe BZX.
- MAGY employs a covered call strategy for weekly income, focusing on Magnificent Seven stocks, which form 29% of the S&P 500.
- The new ETF expands Roundhill's existing lineup, which currently manages over $1.7 billion in assets.
Roundhill Investments has announced the launch of their latest offering, the Magnificent Seven Covered Call ETF (MAGY), which is now trading on the Cboe BZX exchange. This new financial product is designed to generate weekly income by employing a covered call strategy that involves purchasing shares of the Roundhill Magnificent Seven ETF (MAGS, Financial) and writing call options against these holdings. The strategy aims to provide investors with exposure to the Magnificent Seven stocks, a collective that represents approximately 29% of the S&P 500.
CEO Dave Mazza highlighted the significance of the Magnificent Seven stocks in global tech leadership, acknowledging recent market headwinds. In response, MAGY is crafted to balance participation in these companies with reduced volatility and to yield weekly option premium income for investors. This launch adds to Roundhill's lineup, which includes the Roundhill Magnificent Seven ETF (MAGS, Financial) for growth-focused investors and the Roundhill Daily 2x Long Magnificent Seven ETF (MAGX) for traders.
The existing Magnificent Seven ETF lineup from Roundhill currently manages over $1.7 billion in assets. With the introduction of MAGY, Roundhill aims to cater to income-oriented investors by offering weekly distributions, although these payments are not guaranteed and could potentially involve a return of capital. For more details on MAGY, potential investors are encouraged to visit the Roundhill Investments website.
