PLUS Tesla Weekly Covered Call Bond Mixed ETF to Pay 187 Won Distribution in May

Monthly Distribution Rate of 2.07%, Annualized at 24.82%

Hanwha Asset Management announced on the 19th that the 'PLUS Tesla Weekly Covered Call Bond Mixed' Exchange-Traded Fund (ETF) will pay a distribution of 187 won this month.

Based on the closing price on the day before the ex-dividend date (the 13th), the monthly distribution rate is 2.07%, which is equivalent to an annualized rate of 24.82%. As of the 13th, the ETF's total net assets amounted to 130.4 billion won.

Since its listing on December 9 last year, the 'PLUS Tesla Weekly Covered Call Bond Mixed' ETF has seen steady purchases from individual investors. Out of the 103 trading days, individuals recorded net buying on 85 days.

This ETF uses the premium from consistently selling 50% of Tesla weekly call options as its main source of distributions, allowing investors to expect a distribution yield of around 24% per year. Unlike stock dividends, call option sale premiums are not subject to U.S. withholding tax, so when investing through a tax-advantaged account, investors can benefit from deferred taxation on distributions.

Tesla outperformed market expectations by posting positive free cash flow (FCF) in the first quarter, even though a negative result had been forecast. As a result, its share price is rising again.

Geum Jeongseop, Head of the ETF Business Division at Hanwha Asset Management, said, "When investing in a 'single-stock covered call' ETF with high-growth underlying assets like Tesla, it is essential to adopt a strategy that enables investors to participate in upward markets while securing distributions effectively. The PLUS Tesla Weekly Covered Call Bond Mixed ETF is a product that aims to maximize cash flow by providing a monthly distribution yield of 2% and an annual yield of 24%."

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