Global X Alternative Income ETF (ALTY) Covered Calls

The Global X Alternative Income ETF is an exchange-traded fund that tracks the Indxx SuperDividend Alternatives Index. The fund provides exposure to five distinct alternative income-generating categories: Master Limited Partnerships (MLPs) and infrastructure, real estate, preferred securities, emerging market bonds, and covered calls. It is designed for investors seeking high current income and diversification through non-traditional assets that typically have low correlation to stocks.

You can sell covered calls on Global X Alternative Income ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for ALTY (prices last updated Fri 4:16 PM ET):

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The Global X Alternative Income ETF (ALTY) is a multi-asset fund managed by Global X that seeks to provide investors with a diversified stream of high monthly income. The fund utilizes a "fund-of-funds" and direct investment approach to capture yields from alternative market segments that are often difficult for individual investors to access efficiently. By targeting five specific categories—MLPs, REITs, Preferreds, Emerging Market Debt, and Covered Calls—the fund aims to deliver a high distribution yield while maintaining lower volatility than traditional equity markets.

The fund unique structure involves an equal-weighted allocation of 20% to each of its five core categories at the time of its annual reconstitution. This disciplined rebalancing ensures that no single alternative sector dominates the portfolio. Because the fund includes a covered call component (typically via the Global X NASDAQ 100 Covered Call ETF), it can generate income even in flat or slightly declining market environments, making it a popular choice for tactical income portfolios.

Core Business and Products

The primary product is the fund shares, which offer a monthly distribution. The portfolio is a mix of other Global X ETFs and individual securities. For instance, its real estate exposure is often gained through the Global X SuperDividend REIT ETF, while its preferred stock exposure comes from the Global X U.S. Preferred ETF. By bundling these diverse income streams, ALTY provides a simplified way to hedge against interest rate risk and equity market concentration, focusing on "yield-on-cost" as a primary performance metric.

Competition

ALTY competes in the specialized "alternative income" category. Its most direct competitors are other multi-asset income vehicles like the First Trust Multi-Asset Diversified Income Index Fund. While many aggregate income funds exist, ALTY distinguishes itself by its heavy tilt toward "alternative" yields rather than traditional corporate bonds or blue-chip dividends.

Other notable competitors with active options markets include the Invesco Zacks Multi-Asset Income ETF and the Alerian MLP ETF (for the infrastructure portion of the portfolio). Competition is driven by the consistency of the monthly payout, the transparency of the underlying "fund-of-funds" model, and the total expense ratio relative to the yield generated.

Strategic Outlook and Innovation

The strategic outlook for ALTY is focused on the growing investor demand for "income-anywhere" strategies as traditional 60/40 portfolios face headwinds. Management is committed to refining the selection criteria for the emerging market bond and MLP components to ensure that the yield remains sustainable and is not purely a result of principal erosion. The fund monthly distribution schedule is a key strategic advantage for retail investors managing cash flow in retirement.

Innovation for the fund platform involves the integration of sophisticated options-overlay strategies. By using the Global X suite of covered call products as building blocks, ALTY can adapt to different volatility regimes. As the alternative asset landscape expands to include more private-credit-like instruments or specialized infrastructure, the fund underlying index is positioned to evolve, ensuring that ALTY remains a comprehensive and modern solution for the alternative income sleeve of a diversified portfolio.

Want more examples? ALTS Covered Calls | ALV Covered Calls