Hanwha Asset Management Pays First Dividend of 135 Won for PLUS 200 Covered Call Active ETF

Hanwha Asset Management announced on the 3rd that it will pay a monthly dividend of 135 won per share as the first monthly distribution for the 'PLUS 200 Covered Call Active' Exchange Traded Fund (ETF) on August 4. Based on the closing price on July 29, the day before the ex-dividend date, the monthly yield was approximately 2.13%. As the taxable standard amount per share was calculated as 0 won, the full dividend amount will be tax-free.

Listed on June 23, the PLUS 200 Covered Call Active ETF is an active covered call product that combines investments in KOSPI200 constituent stocks with a call option selling strategy. Unlike typical passive covered call funds, which operate according to fixed weights, this product flexibly adjusts the proportion, strike price, and expiration of option sales in response to market conditions. Through this approach, it is designed to increase participation in index gains during bullish markets and ease downside shocks during bearish markets by utilizing option premiums.

This product particularly stands out for its use of a 'dividend avoidance strategy' that maximizes tax-saving benefits. By selling the underlying stocks before the ex-dividend date, it avoids directly receiving stock dividends that would be subject to a 15.4% dividend income tax, and then repurchases the stocks at a lower price after the ex-dividend date to pursue capital gains, which are tax-exempt. As a result, the distribution pool is primarily composed of call option selling premiums and capital gains, so most of the dividend is subject to tax exemption.

The PLUS 200 Covered Call Active ETF has been structured to immediately take advantage of KOSPI200 daily options when they are introduced. The introduction of KOSPI200 daily options is currently under discussion, and utilizing options with shorter expiries would allow for more frequent selling, enabling more sophisticated operations in line with market conditions.

Jungseob Geum, Head of ETF Business at Hanwha Asset Management, stated, "The PLUS 200 Covered Call Active ETF is a product in which investors can participate in index growth during bull markets and, through active management tailored to market conditions, most of the distribution is tax-free. Retirees who use distributions as living expenses will be able to receive predictable dividend payments without concerns about fluctuating payments due to changing tax proportions each month."

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