KB Asset Management Pays Highest Distribution Since Listing for 'RISE Korea Value Up Weekly Fixed Covered Call ETF'
Amid a surge in demand for monthly dividend investments to secure stable cash flow, the RISE Korea Value Up Weekly Fixed Covered Call ETF from KB Asset Management has set its highest-ever distribution since listing.
On July 16, KB Asset Management announced that the July distribution per share for the RISE Korea Value Up Weekly Fixed Covered Call ETF was set at 590 won. This figure is about 40% higher than the previous June distribution of 420 won, marking the highest level since its listing in September last year. The increase is attributed to a rise in call option premium due to greater market volatility, as well as dividend income from domestically listed companies being reflected as part of the distribution resources.
This product has consistently paid a stable monthly distribution for 10 consecutive months since its launch. The cumulative distribution per share has reached 3,080 won, with a cumulative distribution rate of 18.04%.
Its strong management performance also stands out. According to FNGuide, as of July 15, this ETF recorded a six-month return of 47.21% and a year-to-date return of 64.33%.
Such results are credited to its differentiated portfolio and option strategy. This ETF uses the Korea Exchange’s Korea Value Up Index as its underlying asset, diversifying investments across leading domestic value-up sectors such as semiconductors, finance, and automobiles to mitigate concentration risk in any single sector. In addition, it employs a covered call strategy, maintaining a 30% fixed proportion of weekly KOSPI 200 call options sales, allowing for capital gains from rising stock prices while also pursuing option premiums and dividend income simultaneously.
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Yook Donghwi, Head of ETF Product Marketing at KB Asset Management, stated, "With increasing volatility due to a market heavily centered on semiconductors, the synergy from diversifying into leading Korea Value Up companies, utilizing a weekly option strategy, and incorporating corporate dividends has enabled us to achieve the highest distribution since listing," and emphasized, "The RISE Korea Value Up Weekly Fixed Covered Call ETF is an efficient investment product that meets the demand for stable cash flow through growth potential and monthly distributions."
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