Samsung Asset Management's Two KODEX Target Weekly Covered Call ETFs Surpass 1 Trillion Won in Net Assets

The combined net assets of Samsung Asset Management's two flagship target covered call ETFs have surpassed 1 trillion won. Following the launch of the new government, the upward trend in the domestic stock market has led to increased interest from individual investors in domestic target weekly covered call ETFs that allow participation in stock price gains.

On July 14, Samsung Asset Management announced that the net assets of the "KODEX 200 Target Weekly Covered Call" ETF reached 727.4 billion won. Since its listing in December last year, it has surpassed the 700 billion won mark in just over seven months. This product invests in the KOSPI200, which represents the Korean stock market, and aims to pay an annual distribution of around 17% by selling weekly call options on the KOSPI200 index and collecting dividends from the constituent companies.

Since its listing, steady buying by individual investors has continued. On July 11, individual net purchases reached 44.5 billion won, marking the highest daily purchase volume among the 43 covered call ETFs listed on the domestic stock market. Year-to-date, cumulative individual net purchases have reached 494.5 billion won, ranking first among covered call ETFs.

The "KODEX Financial High Dividend TOP10 Target Weekly Covered Call" ETF recorded net assets of 360.1 billion won, surpassing the 300 billion won threshold. This product allows investors to participate in the stock price gains of leading domestic financial companies while also enjoying stable cash flows through the use of target covered calls.

Recently, as financial stocks such as banks and securities firms have delivered their best-ever performance, this ETF has gained popularity by enabling investors to actively participate in stock price gains while receiving an annual distribution of around 15%. The year-to-date return of the KODEX Financial High Dividend TOP10 Target Weekly Covered Call stands at 50.3%, ranking it first among all covered call ETFs.

By utilizing target covered calls, investors can receive high monthly distributions stably even in uncertain market conditions. The product is also attracting steady inflows due to advantages such as tax exemption on option premium income. Option premium income, which accounts for a significant portion of the monthly distribution, is 100% tax-exempt. Because premium income is not included in comprehensive financial income taxation and is tax-free, these ETFs have become a favored investment destination for high-net-worth individuals sensitive to taxes.

The rapid growth of the two KODEX target weekly covered call ETFs is also attributed to the popularity of mid-month distributions. The distribution reference dates for the two products are set differently?on the 15th of each month and on the last business day?so by investing in both products simultaneously, investors can establish a cash flow twice a month.

Lee Daehwan, a manager at Samsung Asset Management, said, "In addition to the upward trend in the domestic stock market, favorable market conditions for stock price gains, such as value-up initiatives and revisions to the Commercial Act, are contributing to continued individual net purchases of target weekly covered call products that allow participation in stock price appreciation." He added, "These ETFs are suitable for investors who want to participate in stock price gains and achieve high returns, while also maintaining stable cash flows and enjoying tax benefits."

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