Samsung Asset Management's KODEX 200 Target Weekly Covered Call ETF Surpasses 5 Trillion Won in Net Assets

Samsung Asset Management announced on May 7 that the net asset value (NAV) of the KODEX 200 Target Weekly Covered Call Exchange Traded Fund (ETF) has surpassed 5 trillion won.

Just one month after reaching a NAV of 4 trillion won in April, the fund attracted an additional inflow of over 1 trillion won, bringing its current NAV to 5.2421 trillion won.

Since its listing in December 2024, this product has established itself as the largest covered call ETF in Korea, recording a cumulative net purchase amount by individual investors of 2.8 trillion won in approximately one year and six months. Notably, since the beginning of this year alone, individual investors have contributed 1.4 trillion won, ranking fifth in net purchases by individuals across the entire ETF market.

The key factors behind its popularity include its strong cash generation ability and tax benefits. KODEX 200 Target Weekly Covered Call uses the KOSPI 200 index as its underlying asset and generates an annual premium income of about 15% through weekly call option selling, on top of which it targets an annual dividend yield of around 2% from stocks, aiming for a total annual distribution of approximately 17%. When calculated on a monthly basis, investors can receive a stable monthly distribution of about 1.42%. Notably, the 15% option premium income is tax-exempt upon distribution and is not subject to the comprehensive financial income taxation, making it particularly attractive to tax-sensitive investors.

Another major strength is that it has overcome the traditional drawback of covered call ETFs, namely 'missing out on rising markets.' Thanks to the target covered call strategy designed to actively participate in index gains, the ETF rose 6.46% on May 6, when the KOSPI 200 index surged by 7.62%, capturing about 85% of the index's gains. Supported by this efficient structure, the year-to-date return stands at 75.9%.

Lee Daehwan, manager at Samsung Asset Management, stated, "Since its listing, the KODEX 200 Target Weekly Covered Call has continued to attract funds from individual investors, growing into the largest covered call ETF in Korea. Even amid recent high market volatility, investors’ sustained interest is evident in the KODEX 200 Target Weekly Covered Call, which provides stable monthly cash flows while also enabling active participation in stock price appreciation."

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