The index is designed to replicate the performance of a covered call strategy on the price of gold, offering investors a structured approach to capturing income while maintaining exposure to gold's price movements. This strategy involves taking long positions in exchange-traded funds (ETFs) that provide direct exposure to physical gold, ensuring alignment with the underlying commodity's performance. Simultaneously, the index takes short positions on call options of the SPDR Gold Shares ETF (GLD), a widely recognized gold-backed ETF, to generate premium income. By blending these positions, the index aims to balance the benefits of long-term gold exposure with the income potential of option premiums.

SPDR Gold Trust (GLD) · Other