Samsung Asset Management, 'KODEX US Nasdaq 100 Daily Covered Call OTM' Attracts 100 Billion KRW in Personal Funds

Samsung Asset Management announced on the 8th that the KODEX US Nasdaq 100 Daily Covered Call OTM Exchange Traded Fund (ETF) saw individual investors purchase over 100 billion KRW during 53 trading days since its listing at the end of October last year.

Among six domestic listed covered call products utilizing the US indices Nasdaq 100 and S&P 500, this product recorded the highest net individual inflow during the same period.

KODEX US Nasdaq 100 Daily Covered Call OTM is based on the US Nasdaq 100 index and applies a 100% covered call strategy using out-of-the-money (OTM) daily call option selling. Through this, it simultaneously pursues up to a 1% daily increase in the Nasdaq 100 index and option premium income. This product was developed through a long-term collaboration between Samsung Asset Management and Nasdaq. It is the first domestic ETF to execute daily physical option trading without time lag.

The underlying index tracked by KODEX US Nasdaq 100 Daily Covered Call OTM, ‘Nasdaq100 Daily Covered Call 101,’ has an average premium income of about 52% per annum over the past five years. Since the call option strike price, which gives the counterparty the right to buy the underlying asset, is set at approximately +1% OTM relative to the Nasdaq 100 index on the day, if the Nasdaq 100 index rises less than the strike price, all such price gains are reflected in the ETF. Investors can simultaneously gain up to about 1% daily price appreciation and option premiums.

Because the daily option premium income varies, the product limits the maximum annual distribution rate to 20% (1.67% per month). If the premium exceeds this, the excess income is reinvested to provide a compounding effect.

The option trading of KODEX US Nasdaq 100 Daily Covered Call OTM applies the domestic first ‘time-lag-free daily covered call strategy’ by conducting physical option trading on the same day locally in the US. Unlike existing domestic ETFs whose real-time trading was limited due to time differences with the US options market, this ETF executes same-day physical option trades in the US through Samsung Asset Management’s New York local office. This enhances trading accuracy and reduces operating costs.

Meanwhile, Samsung Asset Management listed the KODEX US S&P 500 Daily Covered Call OTM, a monthly dividend product with the same structure, on the 7th. This product aims to pay monthly distributions up to 15% annually, and attracted strong investor interest with individual net purchases of 12.8 billion KRW on the first day of listing.

Im Taehyuk, Executive Director of ETF Management at Samsung Asset Management, said, “KODEX US Nasdaq 100 Daily Covered Call OTM is a covered call product based on a leading US index that allows investors to easily understand the profit structure. It is suitable for investors who expect the US stock market to show a moderate upward trend or sideways movement.”

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