KODEX US Dividend Covered Call Active ETF Surpasses KRW 700 Billion in Net Assets

Samsung Asset Management announced on October 15 that the KODEX US Dividend Covered Call Active ETF has surpassed 700 billion won in net assets, reaching 714.6 billion won. The net assets increased by 582.2 billion won (approximately 439%) in just 10 months, up from 132.4 billion won at the end of last year. The ETF is showing strong growth in the US dividend equity covered call ETF market.

Despite recent market conditions with numerous external variables, the ETF has continued to attract rapid inflows of individual net purchases due to its stable returns and excellent monthly dividend rate. The KODEX US Dividend Covered Call Active ETF recorded 458.4 billion won in individual net inflows this year, marking the largest scale among all US dividend equity covered call ETFs listed in Korea.

The KODEX US Dividend Covered Call Active ETF, listed in Korea in September 2022, replicates the "DIVO" ETF, which is recognized in the US for its flexible covered call strategy and strong, stable distribution performance. The ETF holds 27.9% in the VOO ETF and 15.6% in the DIVO ETF, and diversifies across various sectors with individual stocks such as Caterpillar (3.9%), Apple (3.6%), and Visa (3.4%).

Since 2023, the US stock market has seen a differentiated trend centered on AI beneficiary sectors, causing US dividend stock products that are less related to AI adoption to lag in price growth. In contrast, the KODEX US Dividend Covered Call Active ETF has benefited from the AI boom by including technology stocks with growing dividends, setting itself apart from other dividend stock products and achieving the highest performance among its peers. Notable holdings include Microsoft and Apple, both technology stocks with growing dividends, which have been incorporated in response to rapidly changing market conditions.

Compared to 11 other US Dividend Dow Jones-type ETFs listed in Korea, the KODEX US Dividend Covered Call Active ETF ranked first in all major return periods: 3 months, 6 months, year-to-date, 1 year, and 2 years. The ETF's returns were ▲8.1% over 3 months ▲16.3% over 6 months ▲8.7% year-to-date ▲18.3% over 1 year ▲47.6% over 2 years, outperforming all other US Dividend Dow Jones-type ETFs.

Since its initial listing, the monthly distribution rate has steadily increased from 0.47% to as high as 0.76%. The current annual dividend yield stands at 9.2%, living up to its name as a product with dividend growth.

Ma Seunghyun, manager at Samsung Asset Management, said, "Individual investors who have directly experienced the high monthly distribution rate of around 9% per year and the stable returns compared to other US dividend stocks are showing strong interest in this product, known as the 'Korean version of DIVO.'"

He added, "The ETF not only employs a flexible active covered call strategy but also selects holdings that suit market conditions, leveraging the autonomy unique to active products to pursue both high returns and high dividends."

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