Hanwha Asset Management's 'PLUS Tesla Weekly Covered Call' ETF Surpasses 100 Billion Won in Net Assets

Surpassing Milestone in Just Three Months
Three Consecutive Months of 2% Distribution Rates

Hanwha Asset Management announced on March 16 that the net asset value of its 'PLUS Tesla Weekly Covered Call Bond Mixed' Exchange Traded Fund (ETF) has surpassed 100 billion won. This achievement is attributed to steady inflows of individual net purchases, driven by a three-month streak of distribution rates above 2%.

According to Fund Square by Korea Fund Ratings, as of the 12th, the net asset value of the PLUS Tesla Weekly Covered Call Bond Mixed ETF stood at 102.3 billion won. This milestone was reached just three months after its listing on December 9 of last year.

The company interpreted the results as a consequence of predictable mid-month dividend payments, which have consistently attracted individual investors. Since its listing, the PLUS Tesla Weekly Covered Call Bond Mixed ETF has seen net buying from individual investors on 57 out of 61 trading days.

This ETF is a bond-mixed type product, allocating 30% to Tesla and 70% to three-year treasury bonds. It secures its main distribution source by consistently selling 50% of weekly call options on Tesla and collecting the resulting premiums. The expected annual distribution rate is around 24%, with the payment base date set on the 15th of each month.

Since its listing, the PLUS Tesla Weekly Covered Call Bond Mixed ETF has maintained a monthly distribution rate in the 2% range for three consecutive months. In January, the rate was 2.11%; in February, 2.06%; and in March, it will again distribute dividends based on a 2.06% monthly rate. Based on the closing price on March 11, the day before the ex-dividend date, the monthly dividend amounts to 195 won per share.

Additionally, investing through a tax-advantaged account allows investors to benefit from deferred taxation on dividends. The main distribution source of the PLUS Tesla Weekly Covered Call Bond Mixed ETF—premiums from selling call options—is not subject to U.S. withholding tax.

Meanwhile, Tesla is set to unveil its humanoid robot 'Optimus 3rd Generation' and begin mass production of its robotaxi-exclusive model 'Cybercab' later this year. Expansion of the autonomous driving software FSD into China and Europe is also planned, providing further growth momentum for the company.

Geum Jungseop, head of ETF Business Division at Hanwha Asset Management, commented, "Although Tesla’s stock price has fallen by about 8.4% over the past three months since the ETF’s listing, the PLUS Tesla Weekly Covered Call Bond Mixed ETF has only dropped about 0.4% when reinvested distributions are taken into account. By combining bonds for added stability and converting Tesla's inherent volatility into high option premiums for distributions, the ETF can offer strong defensive capabilities even when Tesla’s stock price is flat or declining."

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