'PLUS 200 Covered Call Active' ETF to Pay 152 Won Per Share as September Dividend
Monthly Distribution Rate at 2.05%, Entire Dividend Paid Out Tax-Free
Dividend Avoidance Strategy Implemented in September for Samsung Electronics and Others
Hanwha Asset Management announced on September 30 that it will pay a dividend of 152 won per share for the PLUS 200 Covered Call Active ETF as the September distribution.
Based on the closing price of the day before the ex-dividend date (September 28), the distribution rate is 2.05%. The per-share taxable standard amount is 0 won, which means investors can receive the entire distribution tax-free.
The PLUS 200 Covered Call Active ETF is a product that invests in KOSPI 200 constituent stocks while using a covered call strategy with call options to pursue monthly cash flow. Through its active management approach, it dynamically adjusts the proportion, strike price, and maturity of option sales in response to market conditions.
In particular, by employing a dividend avoidance strategy, most of the distribution is paid out tax-free. Before the ex-dividend date, the ETF sells the stocks it holds, thus avoiding direct receipt of dividends. Instead, it seeks capital gains by repurchasing the stocks at a lower price after the ex-dividend date.
Whereas stock dividends are subject to taxation on distribution, capital gains are not. For the PLUS 200 Covered Call Active ETF, most of the distribution comes from call option premiums and capital gains, both of which can be received tax-free.
This month, the PLUS 200 Covered Call Active ETF implemented its dividend avoidance strategy for Lotte Chemical, LG, Samsung Electronics, Korea Carbon, and Hyundai Department Store.
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Kum Jungsub, Head of ETF Division at Hanwha Asset Management, stated, "When investors use the covered call ETF for their retirement funds or other purposes and utilize the distributions for living expenses, many are concerned about the fluctuating taxation on distributions each month. By using the PLUS 200 Covered Call Active ETF, investors can leave room for market upside potential while receiving most distributions tax-free, which allows for a more predictable after-tax income stream."
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