Global X Canadian Oil and Gas Equity Covered Call ETF: A Recommended Buy for Income-Focused Investors

The article discusses the Global X Canadian Oil and Gas Equity Covered Call ETF (ENCC:CA) as a buy for income-focused investors. It highlights the fund's sister fund, Global X Canadian Oil and Gas Equity ETF (ENCL:CA), and its potential as a source of income for investors. The article emphasizes the importance of covered call strategies for generating income and reducing risk in the energy sector.

Title: Global X Canadian Oil and Gas Equity Covered Call ETF: A Strategic Income Play for Energy Investors

The Global X Canadian Oil and Gas Equity Covered Call ETF (ENCC:CA) has emerged as an attractive option for income-focused investors seeking to generate steady returns in the energy sector. This ETF combines the exposure to Canadian oil and gas equities with a covered call strategy, offering a unique blend of sector exposure and income generation.

The sister fund, Global X Canadian Oil and Gas Equity ETF (ENCL:CA), also presents an intriguing opportunity for investors. While ENCL:CA focuses on providing broad exposure to the Canadian oil and gas sector, ENCC:CA takes it a step further by incorporating a covered call strategy to enhance income potential.

Covered call strategies involve selling call options on the underlying equity holdings, generating additional income through option premiums. This strategy not only provides a steady income stream but also helps to mitigate some of the risks associated with holding long positions in volatile sectors like energy.

According to Zacks Research, Canadian Natural Resources Limited (NYSE:CNQ), one of the major constituents of ENCC:CA, recently saw its Q3 2026 earnings per share (EPS) estimate lowered to $0.53 from a previous prediction of $0.54 [1]. Despite this, the company reported strong Q1 earnings of $0.81 per share, exceeding analysts' expectations [1]. The dividend yield for Canadian Natural Resources has been increased, reflecting a 5.25% yield and a payout ratio of 67.06% [1].

The new ETF suite from State Street Investment Management, which includes the Select Sector SPDR Premium Income ETFs, offers a cost-effective way to generate yield while maintaining targeted sector exposure [2]. These funds combine conventional sector exposure with a covered-call approach, offering a low 0.35% expense ratio.

Investors should consider the unique benefits of covered call strategies, which can provide a steady income stream and potentially reduce the impact of market volatility. The Global X Canadian Oil and Gas Equity Covered Call ETF (ENCC:CA) and its sister fund (ENCL:CA) offer a strategic way to generate income in the energy sector, making them compelling choices for income-focused investors.

References:
[1] https://www.marketbeat.com/instant-alerts/zacks-research-has-bearish-forecast-for-cnq-q3-earnings-2025-07-30/
[2] https://www.benzinga.com/etfs/new-etfs/25/07/46770766/state-streets-new-covered-call-etfs-could-turbocharge-your-monthly-income