RISE Daily Fixed Covered Call ETF Series Surpasses 500 Billion Won in Net Assets

KB Asset Management announced on September 30 that the net assets of its 'RISE Daily Fixed Covered Call' Exchange Traded Fund (ETF) series have surpassed 500 billion won. This achievement comes just two months after the series exceeded 300 billion won in July.

Amid rising volatility in global financial markets, the fund is attracting capital due to its outstanding performance compared to similar products.

According to the fund evaluation firm FnGuide, as of September 29, the RISE US AI Value Chain Daily Fixed Covered Call ETF recorded returns of 24.22% over 3 months, 49.15% over 6 months, and 59.08% over 1 year. These results rank first among 23 overseas covered call ETFs during the same period.

KB Asset Management currently manages three ETFs in the RISE Daily Fixed Covered Call series: RISE US AI Value Chain Daily Fixed Covered Call, RISE US Tech 100 Daily Fixed Covered Call, and RISE US Dividend 100 Daily Fixed Covered Call.

The RISE Daily Fixed Covered Call series employs a 'third-generation covered call' strategy, selling call options daily with the selling proportion fixed at 10% of the underlying assets. This approach is designed to maximize call option premium income during periods of heightened market volatility while capturing over 90% of the underlying index's gains. The funds pursue two goals: income (monthly distribution) and growth (capital gains).

The 'RISE Daily Fixed Covered Call' ETF series differentiates itself through both its product strategy and underlying index design. The 'RISE US AI Value Chain Daily Fixed Covered Call' invests in 15 leading US artificial intelligence (AI) value chain companies. Instead of simply selecting the largest companies by market capitalization, it carefully chooses representative stocks in hardware, software, and service & infrastructure sectors to achieve both growth potential and risk diversification.

The RISE US Dividend 100 Daily Fixed Covered Call invests in 100 US-listed dividend growth stocks that have paid dividends for over 10 years, while selling Standard & Poor's 500 (S&P 500) call options. This strategy aims to provide both stability and income.

The RISE US Tech 100 Daily Fixed Covered Call diversifies investments across 100 US-listed tech companies and sells 10% of Nasdaq 100 call options daily, providing monthly distributions.

Lee Sujin, Head of ETF Product Marketing at KB Asset Management, stated, "The RISE Daily Fixed Covered Call ETF series surpassing 500 billion won in net assets is the result of overcoming the limitations of traditional covered call strategies and delivering outstanding performance. We will continue to focus on providing innovative products to help investors secure cash flow and grow their assets over the long term."

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