Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) Covered Calls
The Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) is a smart-beta, passively managed exchange-traded fund that tracks the Goldman Sachs ActiveBeta Emerging Markets Equity Index. The fund offers broad exposure to emerging market equities by utilizing a multi-factor investment approach, specifically selecting and weighting stocks based on four key attributes: good value, strong momentum, high quality, and low volatility.
You can sell covered calls on Goldman Sachs ActiveBeta Emerging Markets Equity 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 GEM (prices last updated Mon 4:16 PM ET):
| Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 44.31 | +0.75 | 42.19 | 46.74 | 239K | - | 0.0 |
| Covered Calls For Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Mar 20 | 44 | 0.00 | 46.74 | -5.9% | -179.5% | |
| Apr 17 | 44 | 0.15 | 46.59 | -5.6% | -51.1% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
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Unlike traditional market-cap-weighted emerging market ETFs, GEM employs a "smart beta" strategy that systematically rebalances its portfolio to emphasize companies with specific, favorable financial characteristics. By equal-weighting four distinct sub-indices—Value, Momentum, Quality, and Low Volatility—the fund aims to outperform traditional market benchmarks over the long term while managing risk more effectively.
The fund’s portfolio is globally diversified across emerging market economies, with significant allocations to the technology and financial sectors. Key holdings frequently include large-cap leaders in Asian markets, such as Taiwan Semiconductor Manufacturing, Samsung Electronics, and Tencent Holdings. This structure provides investors with a systematic, rules-based method to access the growth potential of emerging economies while mitigating some of the volatility typically associated with these regions.
Competitive Landscape
GEM competes in the crowded emerging markets ETF space. It differentiates itself through its multi-factor construction compared to low-cost, plain-vanilla index funds. Primary competitors and institutional benchmarks include:
- iShares Core MSCI Emerging Markets ETF (IEMG): A massive, low-cost market-cap-weighted benchmark that represents the "standard" for passive emerging market exposure.
- Vanguard FTSE Emerging Markets ETF (VWO): Another industry giant providing broad, low-cost exposure, serving as the primary cost-efficiency benchmark.
- iShares MSCI Emerging Markets ETF (EEM): One of the most liquid and historically significant ETFs in the category, often used for tactical institutional hedging.
Strategic Outlook and Innovation
The strategic mandate for GEM is to maintain consistent adherence to its multi-factor index methodology, ensuring that the portfolio remains tilted toward quality and value even as market conditions shift. Innovation within the fund is operational rather than product-based, focusing on tracking error minimization and efficient execution of rebalancing trades across diverse global exchanges. The fund remains a core "smart beta" tool for investors looking to balance growth with a disciplined, factor-based risk management framework.
| Top 10 Open Interest For Mar 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA covered calls | 6. | QQQ covered calls | 1. | CTMX covered calls | |
| 2. | SLV covered calls | 7. | EWZ covered calls | 2. | PATH covered calls | |
| 3. | EEM covered calls | 8. | GLD covered calls | 3. | KSS covered calls | |
| 4. | SPY covered calls | 9. | FXI covered calls | 4. | OWL covered calls | |
| 5. | IBIT covered calls | 10. | KWEB covered calls | 5. | USO covered calls | |
Want more examples? GEL Covered Calls | GEN Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
