Samsung Asset Management is listing an exchange-traded fund (ETF) that invests in Korea's leading semiconductor blue chips while also allowing investors to receive end-of-month dividends. In particular, it is designed to invest more than half of the asset in Samsung Electronics and SK hynix.
Samsung Asset Management said on the 11th that it will list the "KODEX Semiconductor Target Weekly Covered Call" ETF on the 12th after holding an online press briefing.
Lim Tae-hyeok, head of ETF Management at Samsung Asset Management, said, "The KODEX Semiconductor Target Weekly Covered Call ETF was created by combining the requests of semiconductor investors who want to add stability to semiconductor investing with those of 200 covered call investors who want to add semiconductors to covered call investing."
This ETF invests 100% in semiconductor stocks that make up the TR index of the KRX Semiconductor, Korea's representative semiconductor index, and is designed so that the combined weight of Samsung Electronics and SK hynix exceeds about 50%.
On the 7th, the weight of SK hynix was about 31.4%, and the weight of Samsung Electronics was about 21.4%.
At the same time, to provide a target monthly distribution, it employs a strategy of selling only 30% of KOSPI 200 weekly call options on a fixed basis, Samsung Asset Management noted.
Using the premium received from fixed selling of KOSPI 200 weekly call options, it pays a target monthly distribution equivalent to an annualized 9%, and any premium revenue exceeding that is automatically reinvested into semiconductor stocks to pursue a compounding effect.
Park Seong-cheol, head of ETF Management Team 1 at Samsung Asset Management, said, "Through a passive structure, we fully captured at low cost the two leading blue chips that symbolize Korea's semiconductor industry along with the market's core stocks, and we adopted a strategy to secure a stable monthly dividend source by using KOSPI 200 options, which have greater liquidity than single-stock options."