Samsung Asset Management Makes First Monthly Dividend Payment for KODEX 200 Covered Call Active

As volatility in the domestic stock market intensifies, investors are increasingly turning their attention to covered call Exchange Traded Funds (ETFs), which can help mitigate some of the market's shocks. In this environment, the 'KODEX 200 Covered Call Active' ETF by Samsung Asset Management is drawing attention as it makes its first monthly dividend payout.

According to Samsung Asset Management on July 29, the KODEX 200 Covered Call Active ETF, which was listed on July 14, will pay out its first monthly distribution of 153 won per share. The monthly distribution rate is approximately 2.0%. To be eligible for this payout, investors must purchase shares by July 29, the day before the ex-dividend date, and the actual dividend will be paid on August 4.

This product is an active covered call ETF that invests in leading domestic stocks such as those in the KOSPI200, and flexibly adjusts the proportion of option selling in response to market conditions. During declining or sideways markets, it mitigates downside shocks through option premiums, and during rebounds, it maximizes participation rates, addressing the 'upside cap' that is often seen as a limitation of traditional covered call strategies.

Notably, this product can be invested in not only through general accounts, but also pension savings accounts and retirement pension (IRP, DC) accounts, making it a core asset for accumulating monthly cash flows amid volatile market conditions. As these advantages have become known, cumulative individual net purchases reached 341.5 billion won within just about two weeks of its listing on July 14.

In addition, profits from domestic equity option premiums are tax-exempt under Korean tax law and are not included in the comprehensive taxation of financial income. Even when investing through a general account, the tax burden is much lower than with overseas covered call products, and only dividends from stocks are subject to a 15.4% tax. Thus, the product offers significant advantages from the perspective of the effective tax rate on distributions.

Ahyeon Song, manager at Samsung Asset Management, said, "Recently, the domestic stock market has experienced extreme volatility with declines disproportionate to actual earnings," and added, "A strategy that turns the high volatility of the stock market into attractive monthly cash flow is essential."

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