Hanwha Asset Management's "PLUS High Dividend Cycle Fixed Covered Call" ETF Surpasses 100 Billion Won in Net Assets

Hanwha Asset Management announced on April 16 that the net asset value of the "PLUS High Dividend Cycle Fixed Covered Call" Exchange Traded Fund (ETF) has surpassed 100 billion won.

According to Fund Square by Korea Fund Ratings, as of April 14, the PLUS High Dividend Cycle Fixed Covered Call ETF recorded a net asset value of 100.6 billion won. Amid market volatility, demand from investors seeking stable monthly returns has driven the net buying by individuals to reach 20 billion won so far this year.

Assuming reinvestment of distributions, the fund delivered period returns of 15.67% over the past three months, 25.82% over six months, and 63.59% over one year.

The PLUS High Dividend Cycle Fixed Covered Call ETF invests in the same underlying assets as the PLUS High Dividend ETF, a leading domestic dividend ETF, and employs a covered call strategy by selling weekly KOSPI 200 call options. Dividend income from stocks and premiums from selling KOSPI 200 weekly call options are used as sources for distributions.

Consistent distribution income has also played a significant role. The PLUS High Dividend Cycle Fixed Covered Call ETF posted distribution rates of 1.23% in January, 1.25% in February, 1.23% in March, and 1.24% in April, translating to an annualized rate of approximately 15%. In addition, while dividends from held stocks are subject to dividend income tax, the main source—option premiums—benefit from tax exemption, making the after-tax returns more advantageous.

Jungseob Keum, Head of ETF Business Division at Hanwha Asset Management, stated, "The PLUS High Dividend Cycle Fixed Covered Call ETF is designed to maintain a 30% fixed proportion for call option selling, allowing for upside potential while providing monthly distributions and the ability to capture a certain portion of market gains. With the recent amendments to the Commercial Act strengthening dividend payout ratios, we can also expect additional returns from the revaluation of corporate value."

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