SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA, 19456) is the distributor for the Global X Funds.

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The Global X Research Team is pleased to announce the release of its Monthly Covered Call Report, featuring the premium and distribution values attained by its roster of covered call funds in May of 2025. The key takeaways below, as well as those highlighted within the report, recap some of the most pivotal undertakings to have taken place across the markets during the May roll period. They outline their influence over the option pricing environment and help substantiate changing investor sentiments as characterized by specific market indicators.

View the full report.

Following up on one of the worst drawdowns realized by U.S. markets in the last six years, the Nasdaq 100, S&P 500, Russell 2000, and Dow Jones Industrial Average exhibited total returns of roughly 17%, 13%, 12%, and 9% during the May roll period for the Global X Covered Call suite, which stretched from April 17^th, 2025 to May 16^th, 2025.¹ The sharp appreciation reflected a 90-day pause that had been placed on trade tariffs that the White House had implemented only eleven business days prior. It was further supported by trade deals that were reached with a multitude of partnering nations from around the globe. Most notably, the U.S. and the U.K reached a limited tariff agreement on May 8^th, which was followed up by the tempering of import tariffs that had been levied by the U.S. and China against one another on May 12^th.

Admittedly, fear gauges like the Cboe Volatility Index (VIX) kicked off the May roll period at relatively elevated levels after bond market volatility and commentary from the Federal Reserve, outlining potential implications of tariff activity on the global economy, ushered in concern amongst investors. However, the positive news disseminated around international trade would be coupled with a solid earnings season, with some 78% of the 460 S&P 500 companies that had reported results by May 16^th realizing a share-net surprise to the upside.² At the same time, economic data illustrating relatively subdued price inflation offered some solace that tariffs were not yet feeding into goods prices and that higher interest rates might be weatherable from an economic perspective.³ All told, the VIX fell 42% during the May roll period, to 17.24.⁴

Although the VIX and the Cboe Nasdaq 100 Volatility Index (VXN) checked in lower than they did at the March roll period on March 21^st, the Global X S&P 500 Covered Call ETF (XYLD) and the Global X Nasdaq 100 Covered Call ETF (QYLD) collected May-roll-period premiums that were roughly flat, relative to March.⁵ This likely reflected a strong balance of call options that were in demand heading into options expiration on May 16^th, with roughly 90% of all notional dollars due to expire being tied to call contracts.⁶