May 8 (Reuters) - Global X ETFs rolled out two new

exchange-traded funds using options to generate additional

income for investors, the firm said Wednesday.

The new offerings, the Global X MLP & Energy Infrastructure

Covered Call ETF and the Global X S&P Quality Dividend

Covered Call ETF, will write call options on positions

they own in other Global X funds focused on midstream energy and

dividend-paying stocks, respectively.

Covered call ETFs have become more popular in recent years.

According to data from Morningstar Direct, net assets in the

"derivative income" group now total $70.7 billion, up from $44.5

billion a year ago. The Global X launches bring the number of

new products introduced this year to 11, compared to 10 in all

of 2022 and 25 in 2023.

"In this fast-growing market, there's a ton of white space

for issuers to launch new products," said Rohan Reddy, director

of research at Global X. "There's less fee competition."

The new midstream energy covered call ETF will carry a fee

of 0.60%; the dividend stock covered call fund will have a fee

of 0.35%.

Global X manages 93 ETFs with total assets of $47 billion;

covered call ETFs account for 16 of those funds but $11 billion

of those assets.

Analysts have been watching the proliferation of covered

call strategies with caution. In a report published last year,

Morningstar analyst Katherine Lynch pointed out that the

strategy means relinquishing upside potential in favor of

income, a tradeoff that may not make sense in rising markets.

"Covered call ETFs are all the rage, but I don't see the

need or benefit from adding covered calls to narrow strategies,"

said Bryan Armour, ETF strategist at Morningstar.