Samsung Asset Management noted on the 7th that the 'KODEX Financial High Dividend TOP 10 Target Weekly Covered Call' exchange-traded fund (ETF), which is a monthly dividend product, surpassed a cumulative net purchase of 100 billion won by individuals as of the 3rd. Analysts suggest that interest in stable dividend stocks has increased amid heightened market volatility due to the ongoing tariff war.
According to Samsung Asset Management, the KODEX Financial High Dividend TOP 10 Target Weekly Covered Call ETF recorded a net purchase of 102 billion won by individuals as of the 4th. The total net worth of this product also exceeded 200 billion won, reaching 201.6 billion won as of the 4th. Since the beginning of the year, the net worth has increased by 170.5 billion won, ranking second among 50 dividend-themed ETFs, following the KODEX U.S. Dividend Covered Call Active.
This ETF was listed on December 17 of last year, and within three months of its listing, it surpassed a cumulative net purchase of 100 billion won by individuals.
A representative of Samsung Asset Management said, 'The dividend revenue from financial stocks and the option premium have allowed us to achieve a monthly dividend of around 15%. The advantages of being tax-free in regular accounts have attracted funds from individual investors seeking regular cash flow.'
The KODEX Financial High Dividend TOP 10 Target Weekly Covered Call ETF includes 10 stocks that have passed strict financial requirements such as dividend yield, continuous dividends, high return on equity (ROE), low price-to-book ratio (PBR), and market capitalization, all of which are considered traditional high dividend stocks in the financial sector. It includes KB Financial, Shinhan Financial Group, Hana Financial Group, Woori Financial Group, Industrial Bank of Korea, Samsung Fire & Marine Insurance, NH Investment & Securities, DB Insurance, Samsung Securities, and Korea Financial Group.
The ETF targets an annual monthly dividend of 15% (1.25% monthly) by combining the dividend revenue from these stocks with option premiums. The average dividend yield of the Financial High Dividend TOP 10 over the past four years has exceeded 5%, and with an option ratio of about 30%, premium revenues are generated by selling options, allowing it to distribute annual dividends at around 15%. Dividends of 185 won (distribution rate 1.94%), 123 won (1.27%), and 123 won (1.28%) were paid out in January, February, and March, respectively.
Additionally, this product can receive tax benefits because it generates option premium revenue using domestic derivative products. While overseas investment-type domestic covered call products are subject to tax on both dividend income and capital gains, this product seeks premium returns of around 10% annually by selling KOSPI 200 weekly options weekly, meaning taxes are not imposed on the revenue generated from domestic derivatives or on capital gains from domestic stocks. Thus, even if traded in regular accounts, only the dividend income is taxed, while premium revenue and capital gains receive tax benefits. Monthly distributions are paid on the last business day of each month.
Lee Dae-hwan, a manager at Samsung Asset Management, stated, 'In the current market situation characterized by increased volatility from the tariff war in the United States, financial stocks have defensive characteristics due to asset stability. By investing in high dividend financial stocks that maintain steady income and high dividends, investors can pursue stable cash flow and conservative investment.'