Samsung Asset Management Lists KODEX Tesla Income Premium Bond Mixed Active Fund

Korean-style 'TSLY' ETF, Korea's First Tesla Covered Call Monthly Distribution ETF
Aiming for Over 15% Annual Dividend Payment
Additional Payments if Tesla Volatility Increases

Samsung Asset Management announced on the 24th that it will list the KODEX Tesla Income Premium Bond Mixed Active ETF, which is managed with 30% in Tesla stocks, a leading global electric vehicle company in the United States, and 70% in domestic bonds.

The KODEX Tesla Income Premium Bond Mixed Active ETF combines a Tesla covered call strategy with high-quality domestic bonds. It secures a high level of monthly income distribution resources through option premiums generated by selling call options, which are rights to buy Tesla stocks at a designated price, and interest from about 70% of the assets invested in high-quality comprehensive domestic bonds. By utilizing this covered call strategy and bond investments, the fund aims to pay monthly dividends exceeding 15% annually, and provides additional dividends when Tesla’s volatility increases.

Currently, the representative ETF in the U.S. market that manages 100% of its assets with a Tesla covered call strategy, ‘TSLY’ (YieldMax TSLA Option Income Strategy ETF), has attracted significant attention from both U.S. and domestic individual investors with a high distribution rate exceeding 60% last year. The reason TSLY could pay such high dividends is due to Tesla stock’s very high volatility. It is known that the option premium is about three times higher compared to the Nasdaq 100 index, which generally has relatively high premiums. TSLY, the flagship product of YieldMax management company, has rapidly grown to record 1.1 trillion KRW in net assets within about a year since its listing in November 2022. The KODEX Tesla Income Premium Bond Mixed Active ETF directly utilizes the Tesla covered call strategy and also includes about 10% of TSLY.

Since the KODEX Tesla Income Premium Bond Mixed Active ETF is a stable product that manages 70% of its assets in domestic bonds, it is the only monthly dividend ETF product managed with a covered call strategy that can be invested 100% not only through general pension accounts but also through retirement pension accounts such as Defined Contribution (DC) and Individual Retirement Pension (IRP). It also offers the potential for bond price appreciation due to interest rate cuts. Active pension investors can fully utilize the KODEX Tesla Income Premium Bond Mixed Active ETF as a 30% safe asset product.

Im Tae-hyuk, Executive Director of the ETF Management Division at Samsung Asset Management, introduced, "The so-called KODEX Tesla Income Monthly Dividend ETF is the most competitive monthly dividend ETF listed domestically, with an annual dividend target of over 15% (1.25% monthly), while also combining stability against Tesla’s decline through bond investments." He added, "An investor who invests 100 million KRW can receive about 1.25 million KRW in monthly dividends from covered call profits and bond interest, and also enjoy tax benefits when investing through pension accounts. We expect this to be a solution that can enrich retirement pensions even further."

This content was produced with the assistance of AI translation services.