KB Asset Management Launches 'RISE KOSDAQ Covered Call Active ETF'

KB Asset Management announced on the 28th that it will launch the 'RISE KOSDAQ Covered Call Active' Exchange Traded Fund (ETF), an actively managed ETF that invests in core KOSDAQ growth stocks and pursues monthly distributions through a covered call strategy.

Unlike conventional products that simply track the KOSDAQ150 index, this ETF is characterized by generating excess returns through a concentrated portfolio curated by portfolio managers and securing resources for monthly distributions by utilizing KOSDAQ150 weekly call option premiums. The fund uses the 'KOSDAQ150 Target 15% Weekly Covered Call Index,' calculated by the Korea Exchange, as its benchmark and flexibly adjusts the proportion of option selling based on market conditions. It pursues stable monthly distributions based on an annual target option premium of 15%. Through this hybrid strategy, it aims for growth stock profits in bull markets and mitigates volatility with option premiums in correction phases.

Stock selection is based on KB Asset Management's in-house research capabilities within its equities division. Sector specialists in areas such as semiconductors, bio, and secondary batteries cooperate with the research team to dynamically adjust sector allocations on a monthly basis according to market trends and select the most preferred stocks. Major portfolio holdings include VM (7.14%), PSK (6.84%), TES (6.66%), Alteogen (6.27%), PharmaResearch (5.56%), Eugene Technology (5.54%), Cosmecca Korea (5.53%), Olix (5.40%), PSK Holdings (5.36%), and Wonik IPS (4.62%), among others.

Tax benefits utilizing the domestic equity-type covered call structure are also a notable advantage. Both option premiums and trading gains on constituent stocks are tax-exempt, which is favorable in terms of after-tax returns. Distribution income paid from tax-free sources, based on an annual threshold of 20 million won, is also excluded from the comprehensive financial income taxation base.

Yook Donghwi, Head of ETF Product Marketing at KB Asset Management, stated, "As KOSDAQ is a market concentrated with growth sectors such as semiconductors, bio, secondary batteries, and robotics, the selection of stocks and sectors determines performance. The RISE KOSDAQ Covered Call Active ETF blends growth stock selection capabilities with a covered call strategy to deliver both the growth potential of KOSDAQ and stable monthly distributions."

This ETF is the first product to be launched by KB Asset Management's Active ETF Management Division, which was newly established in the first half of this year to respond to changing market conditions. The company plans to continuously expand its differentiated lineup of active ETFs going forward.

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