Hanwha Asset Management said on the 10th that it newly listed the "PLUS Tesla Weekly Covered Call Bond Mixed" exchange-traded fund (ETF) on the 9th.
The "PLUS Tesla Weekly Covered Call Bond Mixed" ETF is a bond-mix covered call ETF that invests 30% in Tesla and 70% in 3-year Treasury bonds, and pays distributions using a covered call strategy. It sells weekly call options at a fixed 50% and pays a monthly distribution by setting the 15th of each month as the record date.
A key feature is that the call option selling proportion is limited to half of the shares held, allowing participation in Tesla's share price gains with the remaining half. Generally, when selling call options, the upside is capped in exchange for receiving the "option premium," which funds distributions. To address this, the selling proportion is adjusted to allow participation in share price gains.
It is also designed to include 3-year Treasury bonds at a 70% weight to defend to some extent against Tesla's high downside volatility. Under retirement pension regulations, the ETF is classified as a "safe asset," so it can be invested in at a 100% weight without investment limit constraints in retirement pension (DC, IRP) and personal pension accounts.
Kim Jeong-seop, head of the ETF Business Division at Hanwha Asset Management, said, "When investing in a 'single-stock covered call' ETF that uses a high-growth stock like Tesla as the underlying asset, a strategy that effectively secures distributions without being left out in a rising market is essential."