Hantoo Asset Management Sweeps 1st, 2nd, and 3rd Place in 6-Month Cumulative Dividends for ACE Daily Target Covered Call 3 Types

Korea Investment Trust Management announced on the 16th that the three ACE Daily Target Covered Call Exchange-Traded Funds (ETFs) launched in April ranked 1st, 2nd, and 3rd in cumulative dividends over the past six months among covered call ETFs listed domestically. The three products are ACE US 500 Daily Target Covered Call (Synthetic) ETF, ACE US Big Tech 7+ Daily Target Covered Call (Synthetic) ETF, and ACE US Semiconductor Daily Target Covered Call (Synthetic) ETF.

According to Koscom ETF Check on the 15th, the ACE US Big Tech 7+ Daily Target Covered Call ETF recorded a cumulative dividend of 802 KRW since its listing, the highest cumulative dividend among domestic covered call ETFs over the past six months. The ACE US Semiconductor Daily Target Covered Call (Synthetic) ETF and ACE US 500 Daily Target Covered Call (Synthetic) ETF recorded cumulative dividends of 785 KRW and 744 KRW respectively, confirming that the three ACE Daily Target Covered Call ETFs dominated the top ranks in cumulative dividends.

The three ACE Daily Target Covered Call ETFs are the first domestic covered call products to utilize zero-date-to-expiration (0DTE) options. They recently paid October dividends in the range of 131 to 139 KRW. As per the product strategy at launch, they maintained an annual dividend rate of about 15% over six months. The average monthly dividend ranged from 124 to 133.7 KRW, with a dividend yield of approximately 1.20%. Even after deducting the 15.4% dividend income tax, the after-tax basis provided an average monthly dividend yield of over 1%. Investing through pension or ISA accounts offers tax deferral and tax-saving benefits.

Among them, the ACE US 500 Daily Target Covered Call ETF recorded the highest monthly dividend yield among domestic ETFs, reaching 1.27% as of October 15. The monthly dividend yields of the ACE US Big Tech 7+ Daily Target Covered Call ETF and ACE US Semiconductor Daily Target Covered Call ETF were both recorded at 1.26%.

Notably, the ACE US Big Tech 7+ Daily Target Covered Call (Synthetic) achieved a six-month total return of 21.71%, including dividend income, alleviating concerns about profit limitations due to the underlying asset appreciation in covered call products. The ACE US Semiconductor Daily Target Covered Call ETF and ACE US 500 Daily Target Covered Call ETF recorded returns of 17.45% and 13.10%, respectively.

Kim Seunghyun, ETF Consulting Manager at Korea Investment Trust Management, said, "Thanks to the excellent performance since listing, the combined net asset value of the three ACE Daily Target Covered Call ETFs has surpassed 380 billion KRW, and capital inflow continues." He added, "They have gained steady interest from investors by paying dividends stably." He continued, "These three products are suitable choices for investors who need monthly cash flow." He further stated, "Monthly dividend ETFs are the optimal alternative to expect fixed income in highly volatile markets."

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