Kiwoom Asset Management to Pay 215 Won September Dividend for 'KIWOOM KOSDAQ150 Covered Call Active ETF'
Kiwoom Asset Management's monthly dividend exchange-traded fund (ETF), which combines the growth potential of the KOSDAQ 150 Index with a flexible active covered call strategy, has maintained a distribution rate in the 2% range for three consecutive months since its listing.
On September 28, Kiwoom Asset Management announced that it will pay a monthly dividend of 215 won per share for September to holders of the 'KIWOOM KOSDAQ150 Covered Call Active' ETF.
The distribution rate stands at 2.46% based on the Net Asset Value (NAV) as of September 23. The record date for the dividend is September 30, while the actual payment will be made on October 2. Investors who purchase the ETF by September 28 are eligible to receive the dividend.
Having been listed on June 30, this ETF paid a dividend of 175 won per share in July (distribution rate 2.4%), 225 won per share in August (distribution rate 2.5%), and now maintains a high distribution rate in the 2% range for a third consecutive month with a 2.46% rate in September.
This ETF invests in the KOSDAQ 150 Index while flexibly adjusting the proportion of covered call option selling based on market conditions, utilizing an active covered call strategy. Its key feature is allocating KOSDAQ 150 constituent stocks in line with the index, but managing only the option strategy actively to pursue monthly payouts while increasing participation in index gains depending on the market environment.
In rising markets, it reduces the portion of call option selling to participate more actively in index gains, while in sideways or declining markets, it increases the selling ratio to capture option premium income. Moreover, since the main income source for the covered call strategy—the KOSDAQ 150 option premium—is tax-exempt, it is structured to reduce the tax burden for investors.
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Kyungjun Lee, Head of ETF Management at Kiwoom Asset Management, stated, "The KOSDAQ market is favorable for covered call strategies due to the ease of collecting tax-free option premiums and its high volatility. We will continue our efforts to provide stable monthly distributions through active covered call management aligned with market conditions."
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