KB Asset Management said on the 23rd that it launched a covered call exchange-traded fund (ETF) that invests in the U.S. Standard & Poor's (S&P) 500 index while pursuing stable income revenue.
The "RISE U.S. S&P 500 Daily Fixed Covered Call" ETF, listed on the day, uses the S&P 500 index as its underlying asset and employs a daily call option selling strategy.
Aiming to participate at about 90% of the S&P 500 index's gains, it seeks both growth from index increases and income revenue based on monthly distributions. Through this, it provides a relatively stable cash flow even when market volatility increases.
With the "daily fixed covered call" strategy that sells call options equal to 10% of the underlying index each day, it eased the cap on upside participation compared with traditional covered call ETFs. KB Asset Management said that during periods of heightened volatility, investors can secure income revenue through option premiums.
Yuk Dong-hwi, head of ETF product marketing at KB Asset Management, said, "The 'RISE U.S. S&P 500 Daily Fixed Covered Call ETF' is suitable for investors who invest in the leading U.S. index while also considering monthly distribution income revenue."