'SOL 200 Target Weekly Covered Call' ETF June Dividend... 223 Won Per Share

Monthly Distribution Rate of 1.43%

Shinhan Asset Management announced on July 1 that it has paid out the June monthly dividend for the 'SOL 200 Target Weekly Covered Call' Exchange Traded Fund (ETF).

This distribution amounted to 223 won per share, recording a monthly distribution rate of 1.43%.

The SOL 200 Target Weekly Covered Call ETF seeks monthly distributions based on option premiums and dividend income, using the KOSPI 200 Index as its underlying asset. This target covered call strategy involves investing in the KOSPI 200 while simultaneously selling weekly domestic call options to pursue option premium income. The ETF also secures additional distribution resources by including dividend income generated from KOSPI 200 constituent stocks.

Since its listing in March, the cumulative net buying amount by individual investors in the ETF reached 636.3 billion won as of the previous day. Net assets expanded to 863.1 billion won.

The target covered call strategy differs from general covered call strategies by utilizing only a portion of assets to pursue a target premium. Because the proportion of option selling can be flexibly adjusted, it allows for a higher level of market participation when the underlying asset rises. As a result, investors seeking monthly distributions can secure stable premium income while reducing the risk of being relatively sidelined during bullish markets.

In addition, income from domestic option premiums is tax-exempt under Korean tax law and is not included in the comprehensive financial income taxation. However, dividend income generated from investments in KOSPI 200 constituent stocks is subject to dividend income tax.

Kim Junghyun, Head of ETF Business Group at Shinhan Asset Management, stated, "While the KOSPI, which had shown a steep rise since the beginning of the year, has recently entered a sideways trend accompanied by volatility, investors' interest in covered call strategies is growing." He added, "The SOL 200 Target Weekly Covered Call ETF leverages the strengths of domestic target covered call strategies and applies a monthly distribution structure at the beginning of each month, enhancing convenience for investors in managing their cash flow."

He further commented, "Although the product is inevitably affected by fluctuations in the underlying KOSPI 200 Index, it seeks to provide a certain level of monthly distribution by utilizing option premiums, making it highly useful for investors who prioritize cash flow during volatile market phases."

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