Global X Launches Russell 2000 ETFs on Cboe Canada: New Opportunities for Small-Cap Investors

The Canadian market now offers two new options for investors interested in U.S. small-cap stocks, thanks to the launch of Global X Russell 2000 Index ETF (RSSX/RSSX.U) and Global X Russell 2000 Covered Call ETF (RSCC) on Cboe Canada. These funds, providing unique ways to gain exposure to the diverse and high-potential U.S. small-cap sector, cater to both growth-focused and income-seeking investors.

Exposure to U.S. Small-Cap Stocks with RSSX/RSSX.U

The Global X Russell 2000 Index ETF, listed under symbols RSSX (CAD) and RSSX.U (USD), is designed for investors seeking long-term capital appreciation. By tracking the Russell 2000 RIC Capped Index, it offers diversified exposure to the U.S. small-cap sector, which includes emerging companies with high growth potential across multiple industries. These companies often bring innovative products to market, creating opportunities for capital gains.

For Canadian investors wanting to capitalize on U.S. economic growth, RSSX/RSSX.U provides a straightforward path to this dynamic segment. The ETF could be a suitable choice for those with a higher risk tolerance who believe in the potential for rapid expansion within small-cap equities, especially given the current focus on economic recovery and innovation across sectors.

Income and Downside Protection with RSCC

The Global X Russell 2000 Covered Call ETF (RSCC) combines small-cap exposure with a covered call strategy aimed at generating additional income. By writing call options on a portion of its holdings, RSCC seeks to provide regular monthly income through dividends and option premiums, while partially offsetting potential downside risks.

RSCC may appeal to investors who prefer a more conservative approach to small-cap stocks, as the covered call strategy can help mitigate volatility. This makes RSCC an option worth considering for those looking for income-focused portfolios with a blend of equity growth potential and risk management. It could also serve as an attractive alternative to high-yield investments with a favorable income stream, potentially appealing to income-oriented investors seeking diversification beyond traditional dividend stocks.

Which Type of Investor Might Find These ETFs Suitable?

• RSSX/RSSX.U: Ideal for growth-focused investors looking to diversify with high-potential small-cap U.S. equities. Given the inherent volatility of small-cap stocks, this ETF suits those with a long-term outlook who are comfortable with market swings.
• RSCC: Suitable for income-seeking investors interested in U.S. small caps but who also value downside protection. The covered call strategy may make this ETF attractive to those looking for monthly income without taking on the full volatility of a traditional small-cap index fund.

Both ETFs provide Canadian investors with greater access to the U.S. small-cap sector, tapping into Cboe’s established expertise in options and ETF management.