'RISE Korea Value-Up Weekly Fixed Covered Call' ETF Pays August Distribution

11 Consecutive Distributions Since Listing

Cumulative Payout Per Share: 3,660 Won

Year-to-Date Return of 64.73%

KB Asset Management announced on the 18th that the 'RISE Korea Value-Up Weekly Fixed Covered Call' Exchange Traded Fund (ETF) has recorded a payout rate in the 3% range for two consecutive months.

The August distribution per share for the RISE Korea Value-Up Weekly Fixed Covered Call ETF has been set at 580 won. The payout rate is 3.21%, marking the second consecutive month in the 3% range, following a rate of 3.22% in July (590 won per share).

This ETF invests in the 100 constituent stocks of the Korea Value-Up Index and utilizes a covered call strategy, selling KOSPI200 call options at a fixed rate of 30% of assets twice weekly.

Option premiums, dividends, and interest income are utilized as monthly distribution resources, and distributions are paid out monthly. Additionally, being classified as a domestic equity ETF, it is exempt from dividend income tax on capital gains and option premium income.

Recently, as volatility in the domestic stock market has increased, interest in covered call strategies utilizing option premiums has also been on the rise. When volatility expands, option premiums tend to increase, making this strategy attractive for monthly distribution products.

Since its launch in September last year, the RISE Korea Value-Up Weekly Fixed Covered Call ETF has paid out distributions for 11 consecutive periods. The cumulative distribution per share is 3,660 won, and the cumulative payout rate is 21.61%.

According to fund evaluation firm FnGuide, the product has achieved a return of 64.73% year-to-date, and 121.35% since listing.

The portfolio is composed of SK hynix (17.90%), Samsung Electronics (16.79%), SK Square (8.46%), Hyundai Motor Company (4.98%), KB Financial Group (4.12%), Shinhan Financial Group (3.55%), Hanwha Aerospace (3.09%), Kia Corporation (2.77%), Hyundai Mobis (2.73%), and Hana Financial Group (2.66%), among others.

Yook Dong-hwi, Head of ETF Product Marketing at KB Asset Management, stated, "Rather than adjusting the call option selling ratio based on market conditions, we have stably secured option premiums by consistently maintaining a set selling ratio. As more investors seek predictable monthly cash flows, we will continue to introduce a variety of covered call products based on major domestic and international indices."

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