Global X Russell 2000 ETF Performance and Investment Strategy

The Global X Russell 2000 ETF is designed to track the performance of the Russell 2000 Index, which represents the smallest 2,000 publicly traded companies in the US.

The ETF has a net expense ratio of 0.12%, significantly lower than many other small-cap ETFs.

The fund invests in a broad range of industries, including technology, healthcare, and finance, allowing investors to gain exposure to the US small-cap market.

By tracking the Russell 2000 Index, the Global X Russell 2000 ETF provides investors with a diversified portfolio of small-cap stocks.

The fund has a minimum of 95% of its holdings in the underlying index, ensuring that investors get a true representation of the small-cap market.

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The Global X Russell 2000 Index ETF has a net asset value of $6,254,694 as of February 20, 2025.

Its consolidated prior day volume is a relatively modest 1,587, which may indicate a low trading activity in the ETF.

The average daily trading volume over a 12-month period is 6,526, which suggests a moderate level of trading activity in the ETF.

The management fee for this ETF is 0.65% per annum, plus applicable sales tax.

The management expense ratio is based on total expenses, including sales tax, and is expressed as an annualized percentage of the ETF's daily average net asset value.

No currency hedging is employed in this ETF, which means it's exposed to foreign exchange rate fluctuations.

The LEI (Legal Entity Identifier) for the Global X Russell 2000 Index ETF is 894500GWNP9MG5VQ1713, which is an identification code under international standards for legal entities like the ETF.

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The Global X Russell 2000 Covered Call ETF has a relatively low portfolio turnover rate of 19%, which is significantly lower than the average portfolio turnover of 37% for the Derivative Income category.

This low turnover rate suggests that the fund tends to hold its assets for a longer period, which can help minimize expenses and maximize aftertax returns.

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In the month of December 2024, the fund returned -1.1%, earning it a grade of C, which is based on relative rankings within the investment category.

The Derivative Income category had an average return of -1.5% in December 2024, making the fund's return slightly better than average.

The fund's performance is measured against other ETFs in the Derivative Income category, and its letter grade is determined by its relative ranking within this group.

A grade of A would indicate that the fund's return is in the highest 20% for that time period compared to all ETFs in that category.

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The Global X Russell 2000 invests in small-cap stocks, which can be a great way to diversify your portfolio and potentially earn higher returns.

Small-cap stocks have historically outperformed large-cap stocks over the long term, with the Russell 2000 index delivering an average annual return of 10.4% over the past 20 years.

This strategy is suitable for investors who are willing to take on a bit more risk in pursuit of higher returns.

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RYLD offers a high dividend yield of 11.8% through a covered call strategy, ideal for income generation.

This is particularly appealing to investors seeking regular income from their investments.

The Global X Russell 2000 Covered Call ETF has experienced a price decline of over 33% since its inception.

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RYLD's covered call strategy on the Russell 2000 offers high monthly income to income-focused investors.

This approach, however, comes with a trade-off: it caps upside potential.

The Russell 2000 implied volatility hitting a two-month low means less option premium to be collected from selling upside calls.

Since inception, RYLD has underperformed the Russell 2000 index, making it less suitable for investors seeking long-term growth.

Small caps continue to struggle relative to large caps, which is reflected in RYLD's performance.

High monthly income is attractive, but it's essential to weigh this against the potential for missed gains.

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The Global X Russell 2000 is an ETF that tracks the Russell 2000 Index, which is made up of the smallest 2,000 publicly traded companies in the US.

This ETF offers a way to gain exposure to small-cap stocks, which have historically outperformed large-cap stocks over the long-term.

The Russell 2000 Index has a market capitalization of around $3 trillion, with a median market cap of around $1.5 billion.

Investors in this ETF can expect to see a high level of volatility, as small-cap stocks are often more sensitive to market fluctuations.

Global X Russell 2000 Covered Call ETF has a concerning history of falling in value over the subsequent 52-week period.

In 4 out of 5 years, the ETF has fallen lower, resulting in a historical accuracy of 80%. This trend is a red flag for investors considering this ETF.

Investors should carefully review the ETF's performance over the past years before making a decision.

A 20% chance of the ETF not following this trend is not enough to ignore the 80% accuracy rate.

If you're considering investing in the Global X Russell 2000 Covered Call ETF, be aware of this potential risk factor.

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The Global X Russell 2000 Covered Call ETF, also known as RYLD, offers a high dividend yield of 12% through a covered call strategy, ideal for income generation.

RYLD has accumulated over $1.4 billion in assets, with a significant portion of these funds coming in this year alone, indicating its popularity among investors.

The ETF's price has declined by over 33% since inception, but its dividend yield remains attractive, making it an interesting option for investors seeking income.

The total return of RYLD is a percentage measure reflecting its total performance, incorporating both capital gains and the effect of dividends reinvested over a specific period.

RYLD's net asset value (NAV) is the total value of its assets minus liabilities, and it's essential to consider this when evaluating the ETF's performance.

The ETF's small-cap focus allows it to collect option premium from selling upside calls, but implied volatility has dipped to a two-month low, which may not be ideal for selling calls.

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The Global X Russell 2000 ETF is designed to track the performance of the Russell 2000 Index, which represents the small-cap segment of the US stock market.

The Russell 2000 Index is comprised of approximately 2,000 publicly traded companies, making it a broad representation of small-cap stocks.

This index is known for its high volatility, which can be a double-edged sword for investors.

The NAV chart is a valuable tool for investors, showing the historical daily net asset value per unit of an ETF. It helps track the value of an investment over time.

The chart identifies various distributions made by the ETF, but these are not treated as reinvested.

The NAV values do take into account management fees and other fund expenses, providing a more accurate picture of an investment's performance.

The chart is not a performance chart and is not indicative of future NAV values, which will vary.

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The Top 10 Holdings section of an investment portfolio provides valuable insights into the underlying assets.

The Global X Russell 2000 ETF holds a significant weight of 100.99% in the portfolio, making it the largest holding.

Cash makes up a relatively small portion of the portfolio, with a weight of 0.08%.

The other holdings, including Cincor Pharma Inc - Cvr, Warrant on Inhibrx Inc Ordinary Shares, and Warrant on Novartis AG Registered Shares, each hold a negligible weight of 0.00%.

Here's a breakdown of the top 10 holdings:

The remaining holdings, including Pulse Biosciences, Cartesian Therapeutics, and Omniab, have a combined weight of 0.00%.

Over the next 52 weeks, Global X Russell 2000 Covered Call ETF has on average historically fallen by 7.8% based on the past 5 years of stock performance.

This decline is not a guarantee, but it's a trend that has played out in 80% of the past 5 years.

The Global X Russell 2000 Covered Call ETF has a lot to say about its performance, and it's all tracked in its grades. The fund has returned 10.1% over the past year, which is an F grade.

Year-to-year, the ETF's performance has been inconsistent. In 2024, it returned 10.1%, but in 2023, it returned only 0.3%. The fund's grade for 2023 was also an F.

Here's a breakdown of the ETF's grades over the past few years:

As you can see, the ETF's grades have varied widely over the years, reflecting its inconsistent performance. Despite this, the fund has maintained a relatively stable yield of 12.0%.