KB Asset Management’s 'RISE Korea Value-Up Weekly Fixed Covered Call ETF' Surpasses KRW 300 Billion in Net Assets

KB Asset Management’s monthly dividend Exchange-Traded Fund (ETF), which combines core domestic value-up company investment with a covered call strategy capping the proportion of covered call option sales, has surpassed KRW 300 billion in net assets while maintaining a distribution yield in the 3% range per month.

On September 18, KB Asset Management announced that the 'RISE Korea Value-Up Weekly Fixed Covered Call' ETF had exceeded KRW 300 billion in net assets, thanks to its steady dividend distribution and strong performance.

Listed in September 2025, this product has paid out KRW 4,200 per share in distributions over the past year (a distribution rate of 24.69%), and in particular, recorded a monthly distribution rate in the 3% range for three consecutive months from July to September (3.22%, 3.21%, and 3.08%, respectively).

This ETF invests in all 100 constituent stocks of the Korea Value-Up Index, employing a covered call strategy that fixes the sale of KOSPI200 call options at 30% of the portfolio, twice a week. By capping call option sales at 30%, the strategy allows the premium from selling options to be used for supporting monthly distributions, while the remaining 70% of assets are structured to participate in the rise of the underlying stocks. Distributions are paid monthly from option sale premiums, dividends, and interest income. As a domestic equity-type ETF, there is no dividend income tax on capital gains and option premium income. The management fee is 0.30% per year, and the ETF is available for investment through personal pension and retirement pension accounts.

Major holdings include SK hynix (20.12%), Samsung Electronics (16.14%), SK Square (7.82%), KB Financial Group (4.48%), Hyundai Motor Company (4.10%), Shinhan Financial Group (3.81%), Hanwha Aerospace (2.86%), Hana Financial Group (2.80%), and Kia (2.46%).

The ETF’s performance has also been strong. According to the fund rating agency FnGuide, as of September 17, the ETF recorded a 99.00% return over the past year and 119.21% since its listing.

Yook Donghwi, Head of ETF Product Marketing at KB Asset Management, stated, “There is growing interest in value-up companies as domestic companies continue to expand shareholder return policies including share buybacks, cancellations, and increased dividends. The 'RISE Korea Value-Up Weekly Fixed Covered Call ETF' could serve as an attractive option for investors, providing exposure to companies that are ramping up shareholder returns while also receiving monthly distributions.”

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