KB Asset Management's RISE 200 Weekly Covered Call ETF Surpasses 1 Trillion Won in Net Assets

As volatility in the global financial markets increases, investors seeking stable cash flows are turning their attention to income-focused products. Amid this trend, KB Asset Management's flagship income-type product has surpassed 1 trillion won in net assets.

On June 5, KB Asset Management announced that the net assets of its monthly distribution Exchange-Traded Fund (ETF) based on the KOSPI200 index, the 'RISE 200 Weekly Covered Call ETF,' have exceeded 1 trillion won.

Launched in 2024 as Korea’s first weekly covered call ETF, this product is structured to generate stable income by selling at-the-money (ATM) weekly call options on a KOSPI200 portfolio.

Unlike traditional monthly covered call strategies, this ETF stands out by selling call options twice a week (about eight times a month), aiming for higher income returns. Even when the stock index is flat or declining, it is considered an attractive investment alternative because it can deliver strong excess returns compared to the KOSPI200 index.

The distribution structure is also distinctive. It secures stable funds for distributions even during periods of high market volatility, by utilizing the premiums earned from selling KOSPI200 ATM call options and the dividends from KOSPI200 constituent stocks as resources for distribution. Based on this, monthly distributions are provided. Moreover, the taxable income is relatively low, making it advantageous from a tax-saving perspective.

Over the past year, the cumulative annual distribution rate reached 18.72%, which translates to a stable monthly payout of 1.56% on average.

The product excels not only in stability but also in performance. According to the fund evaluation agency FnGuide, as of June 4, the six-month and one-year returns stand at 69.33% and 137.46%, respectively.

Yook Donghui, Head of ETF Product Marketing at KB Asset Management, said, "The RISE 200 Weekly Covered Call ETF is a product that simultaneously pursues stable monthly distributions and excess returns by utilizing weekly option selling strategies," adding, "It is establishing itself as a preferred income-type ETF among investors seeking monthly cash flow."

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