The two Global X S&P 500 Quarterly Buffer UCITS ETF (SPQB) and Global X S&P 500 Quarterly Tail Hedge UCITS ETF (SPQH) provide protection against differing levels of sell-off in the S&P 500.
Global X argued that the new ETFs may be appealing in the current macroeconomic environment, as a looming recession weighs heavy on the minds of investors.
The S&P 500 Quarterly Buffer ETF aims to absorb the first 5% of losses on the S&P 500 each quarter, using the Cboe S&P 500 15% WHT Quarterly 5% Buffer Protect index.
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Meanwhile, the S&P 500 Quarterly Tail Hedge ETF aims to provide investors with a 9% buffer on the S&P 500, after the first 3% of losses on the index, meaning up to a 12% loss on the index.
It seeks to provide investment results that correspond generally to the total return of the Cboe S&P 500 15% WHT Quarterly 9% (-3% to -12%) Buffer Protect index.
Both ETFs have expense ratios of 0.5%.
Rob Oliver, head of business development for Global X ETFs in Europe, said: “Amid continued market volatility and recession fears, many investors are looking to thwart anticipated drawdowns in equity markets and maintain defined levels of risk and reward.
“I am thrilled that Global X is demonstrating our commitment to the European market through these new defined outcome strategies, which will provide investors with the tools they need to maintain a smoother ride while staying exposed to US equities.”
