Korea Investment Management's ACE High Dividend Plus Covered Call Active ETF Surpasses 100 Billion Won in Individual Net Purchases

With volatility increasing in the domestic stock market, demand from investors seeking both dividend income and monthly cash flow while also participating in stock price growth has surged. As a result, cumulative net purchases by individual investors in Korea Investment Management's "ACE High Dividend Plus Covered Call Active" Exchange-Traded Fund (ETF) have surpassed 100 billion won.

On August 20, Korea Investment Management announced that the ACE High Dividend Plus Covered Call Active ETF recorded a cumulative net purchase amount of 102.6 billion won by individual investors, based on the closing price as of August 19. This achievement comes about two and a half months after its listing on June 2, with the current net asset value reaching 124.9 billion won.

This product is an active ETF, which includes 20 traditional domestic high-dividend stocks, with the addition of Samsung Electronics and SK hynix. It compensates for the limitations of previous high-dividend ETFs—which were heavily weighted toward finance and telecommunications—and adds the growth potential of large-cap semiconductor stocks to the portfolio. Through an active investment approach, it comprehensively assesses dividend yield, growth rate, shareholder return policy, and post-dividend price recovery when selecting stocks. The top holdings include Samsung Electronics (9.68%), SK hynix (8.20%), Samsung Fire & Marine Insurance (6.58%), Hankook Tire & Technology (6.55%), and Korean Reinsurance (5.83%).

The source of the monthly distribution is composed of dividends from the included stocks and option premiums secured through the sale of call options. Employing an at-the-money (ATM) KOSPI 200 call option selling strategy, the ETF collects option premiums twice a week.

Based on this investment strategy, the ACE High Dividend Plus Covered Call Active ETF set its July distribution at 175 won per share. The distribution rate, calculated using the closing price on the day before the ex-dividend date, is 2.0%. Compared to the inaugural June distribution of 168 won per share, this amount increased by 7 won, and the cumulative distribution paid twice since listing totals 343 won per share.

Nam Yongsoo, Head of ETF at Korea Investment Management, stated, "The ACE High Dividend Plus Covered Call Active ETF is a product that combines the cash flow of domestic high-dividend stocks with the growth potential of Samsung Electronics and SK hynix, alongside a covered call strategy. The fact that cumulative net purchases by individuals exceeded 100 billion won demonstrates investor demand for both dividends and growth potential." He added, "Through active management, we will closely review company-specific dividend sustainability, shareholder return policies, and market conditions, while flexibly adjusting stock weights and option strategies to pursue both monthly cash flow and stock price appreciation."

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