SOL Palantir US Treasury Covered Call Mix ETF Achieves Monthly Distribution Rate in the 2% Range

Shinhan Asset Management announced on December 1 that the 'SOL Palantir Covered Call OTM Bond Mix' and 'SOL Palantir US Treasury Covered Call Mix' ETFs will each pay a monthly distribution of 200 KRW and 250 KRW per share, respectively.

The SOL Palantir US Treasury Covered Call Mix ETF maintained its top position among 49 covered call ETFs listed in Korea, being the only one to record a monthly distribution rate in the 2% range.

The SOL Palantir Covered Call ETF series is experiencing rapid growth with its monthly dividend strategy that combines profitability and stability. The net assets of the SOL Palantir Covered Call OTM Bond Mix surpassed 240 billion KRW within seven months of its listing, up from 8 billion KRW at launch. Cumulative net purchases by individual investors reached 133.5 billion KRW.

Kim Gideok, Head of Quant & ETF Management Division at Shinhan Asset Management, explained, "Last month, a prolonged US government shutdown and concerns over an artificial intelligence (AI) bubble triggered a sharp correction in technology stocks, causing Palantir (PLTR) shares to fall by about 30% from their peak." He added, "The SOL Palantir Covered Call ETF series played a practical role in buffering losses during this period of heightened volatility by providing high monthly dividends."

Kim further analyzed, "Palantir beat market expectations in its third-quarter results this year, posting revenue of 1.181 billion USD and adjusted EPS of 0.21 USD." He continued, "The annual revenue guidance has also been raised to approximately 4.4 billion USD." He assessed, "High growth centered on the private commercial sector, moving away from a government and defense-focused revenue structure, is now being fully reflected in Palantir's performance."

The SOL Palantir Covered Call OTM Bond Mix ETF employs a strategy of generating aggressive income by partially participating in Palantir's share price appreciation while selling out-of-the-money (OTM) call options. The SOL Palantir US Treasury Covered Call Mix ETF seeks more stable monthly distribution income by allocating up to 30% to Palantir and adding a covered call strategy based on long-term US Treasury bonds.

Both products allow investors to pursue capital gains and monthly dividend income simultaneously by investing in Palantir, a leading AI company, while applying a covered call strategy. They are also eligible for 100% investment through pension savings and retirement pension (DC/IRP) accounts.

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