PLUS Tesla Weekly Covered Call Bond Mixed ETF to Pay 180 Won Dividend in April

Monthly Distribution Rate of 1.99%, Annualized at 23.89%

Hanwha Asset Management announced on the 17th that the "PLUS Tesla Weekly Covered Call Bond Mixed" Exchange Traded Fund (ETF) will pay a dividend of 180 won per share this month.

According to Hanwha Asset Management, based on the closing price on the day before the ex-dividend date (April 13), the monthly distribution rate of this ETF is 1.99%, which is equivalent to an annualized rate of 23.89%. As of April 15, the total net asset value was recorded at 121.9 billion won.

Listed on December 9, 2023, the "PLUS Tesla Weekly Covered Call Bond Mixed" ETF generates its main distribution source from the premiums earned by consistently selling weekly call options on Tesla, amounting to 50% of its exposure. Investors can expect a distribution rate of about 24% per year.

A Hanwha Asset Management representative explained, "Unlike stock dividends, the call option selling premium, which is the main source of distribution, is not subject to U.S. withholding tax. Therefore, when investing through a tax-advantaged account, investors can benefit from tax deferral on distributions."

Tesla shares surged 7.6% on April 15, following news that the company had completed the design of its proprietary AI chip, "AI5," and was preparing for mass production.

Kim Jungseop, Head of the ETF Business Division at Hanwha Asset Management, stated, "The PLUS Tesla Weekly Covered Call Bond Mixed ETF is a product that utilizes Tesla's unique volatility to receive high option premiums, enabling it to pay a predictable monthly distribution of 2%, or about 24% annually. While participating to a certain extent in Tesla's share price appreciation, investors can also receive monthly distributions during periods of share price declines, making it highly attractive for individual investors."

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