Hanwha Asset Management to Pay 147 Won per Share as August Distribution for PLUS 200 Covered Call Active
Hanwha Asset Management announced on August 27 that the "PLUS 200 Covered Call Active" Exchange Traded Fund (ETF) will pay out 147 won per share as its August distribution. As of the closing price on August 25, the monthly distribution rate is approximately 2%.
The PLUS 200 Covered Call Active ETF is a "monthly dividend" covered call ETF that invests in KOSPI 200 stocks while pursuing monthly cash flows through a covered call selling strategy. Unlike passive covered call ETFs, it adopts an active strategy that dynamically adjusts the weight and strike prices of option selling depending on market conditions. In bullish markets, the ETF increases index participation, and in bearish markets, it maximizes the collection of option premiums to strengthen downside protection.
Particularly noteworthy is its "dividend avoidance strategy," which involves selling held stocks before the ex-dividend date and repurchasing them afterwards. This approach helps minimize tax burdens for investors by focusing distribution sources on non-taxable items, such as covered call selling premiums and stock trading gains, rather than receiving share dividends that are subject to a 15.4% dividend income tax.
The PLUS 200 Covered Call Active ETF is also designed to immediately utilize KOSPI 200 daily options when they are introduced in the future. The introduction of KOSPI 200 daily options is currently under discussion, and if short-term options are utilized, the ETF can increase the frequency of option selling, enabling more sophisticated management in response to different market phases.
Hot Picks Today
Despite "Insufficient Balance" Notices, They Board Anyway... Reports of Foreign Fare Evasion Mounting
- "If It Helps My Child's Studies, It's Worth Every Penny"... U.S. Parents Open Their Wallets for $10,000 Tests
- [Exclusive] "We Came for a KRW 140,000 Trip": Following Chinese Tourists in Korea Uncovers a 'Suspicious' Tour
- "I'm paying to stay, and you want me to do the laundry and dishes too?" ... Airbnb bans excessive cleaning demands
- "Baek Jongwon Had Been Quiet, Then Hit It Big"... Waits in the 100s in U.S. Despite KRW 46,000 Pork Belly
Jeongseop Keum, Head of ETF Division at Hanwha Asset Management, stated, "In a sideways market like the recent KOSPI fluctuations, a covered call ETF that secures monthly cash flows while retaining upside potential is an effective investment tool. Retirees who use distributions as living expenses will be able to receive most distributions tax-free, without concerns over fluctuating distribution amounts due to changing tax ratios each month."
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.
