KB Asset Management said on the 5th that the net worth of the KOSPI 200 index-based monthly distribution exchange-traded fund (ETF), "RISE 200 Weekly Covered Call ETF," has surpassed 1 trillion won.
This product is the first weekly covered call ETF listed in Korea in 2024. Aiming to generate stable income revenue, it sells weekly at-the-money (ATM) call options based on a KOSPI 200 portfolio.
By selling call options twice a week, about eight times a month, it seeks relatively higher income revenue than traditional monthly covered call strategies, and in particular aims to secure excess revenue over the KOSPI 200 index when the stock index moves sideways or declines.
It secures funds steadily even in periods of high market volatility by using the KOSPI 200 ATM short-call premiums and dividends from KOSPI 200 constituent stocks as distribution resources. Taxable income is also relatively small, which is advantageous for tax saving. The cumulative annual distribution rate over the past year is 18.72%, with an average monthly distribution of 1.56%.
According to FnGuide, as of the 4th, the returns over the past six months and one year are 69.33% and 137.46%, respectively.
Yuk Dong-hwi, head of ETF product marketing at KB Asset Management, said, "The RISE 200 Weekly Covered Call ETF uses weekly option selling to pursue stable monthly distributions and excess revenue at the same time," adding, "It is establishing itself as an income-type ETF favored by investors who want monthly cash flow."