The Credit Suisse X-Links Gold Shares Covered Call ETN (GLDI) is an exchange-traded debt instrument designed to provide returns linked to gold performance combined with a systematic covered call strategy. The note is issued by an entity affiliated with UBS Group AG and trades under the ticker GLDI on NYSE Arca.
Classified as a structured ETN with commodity exposure and an options-based strategy, GLDI seeks to reflect, before fees and expenses, the performance of an index that combines gold exposure with a covered call overlay.
GLDI is linked to a proprietary index combining exposure to gold futures with a recurring covered call strategy.
The index methodology involves futures contract rollovers and systematic implementation of call option writing, reflecting both gold price movements and option premium generation.
Composition and Exposure profile
GLDI provides structured exposure combining:
- Returns linked to gold prices through futures contracts.
- Income generation via systematic covered call writing.
- Sensitivity to gold market volatility and derivatives market conditions.
This structure may result in performance characteristics distinct from ETFs that track only the price of physical gold.
Structure and costs
GLDI trades on the secondary market on NYSE Arca as an ETN, representing an unsecured debt obligation of the issuer. Issuance and redemption follow ETN-specific procedures.
The instrument charges a management fee and related structural costs and does not apply a performance fee. Investors assume issuer credit risk in addition to exposure to the underlying strategy.
History and evolution of the ETN
Credit Suisse X-Links Gold Shares Covered Call ETN was introduced to provide combined gold exposure and income generation through options strategies. Since inception, it has been used by investors seeking total return strategies with an income component in commodity markets.
In recent years, GLDI has reflected inflation cycles, interest rate movements, fluctuations in gold prices, and volatility conditions affecting options strategies, while maintaining its structured debt-based framework.