KB Asset Management's 'RISE Korea Value-Up Weekly Fixed Covered Call ETF' Surpasses KRW 400 Billion in Net Assets

KB Asset Management’s monthly-distribution exchange-traded fund (ETF), “RISE Korea Value-Up Weekly Fixed Covered Call,” which invests in high-quality stocks that return capital to shareholders, has surpassed KRW 400 billion in net assets. The milestone came just one month after the fund topped KRW 300 billion the previous month.

On October 12, KB Asset Management announced that the net assets of the RISE Korea Value-Up Weekly Fixed Covered Call ETF had exceeded KRW 400 billion.

Individual investors have been buying the fund at a rapid pace, with their net purchases totaling about KRW 80 billion over the past four trading days.

Launched in September 2025, the fund invests in the 100 component stocks of the Korea Value-Up Index while employing a covered-call strategy that sells KOSPI 200 call options twice a week, with the options representing a fixed 30% of the fund’s assets. By capping the proportion of call options sold at 30%, the fund uses the premiums from option sales as a source of distributions, while allowing the remaining 70% to participate in gains in the underlying assets’ share prices.

The fund pays monthly distributions using premiums from option sales, dividends, and interest income. Over the past year, the distribution per share was KRW 4,200, equivalent to a distribution yield of 24.69%. The monthly distribution yield remained in the 3% range for three consecutive months, from July through September.

According to fund data provider FnGuide, as of October 8, the ETF had returned 93.90% over the past year and 120.48% since its listing. Its major holdings include SK hynix (19.7%), Samsung Electronics (17.1%), SK Square (8.2%), KB Financial Group (4.2%), Hyundai Motor (3.8%), and Shinhan Financial Group (3.5%).

Classified as a domestic equity ETF, the fund is not subject to dividend income tax on trading gains or option premium income. Its annual management fee is 0.30%. It is also available for investment through personal pension and retirement pension accounts.

Yook Dong-hwi, head of ETF Product Marketing at KB Asset Management, said, “As interest grows in Korean companies’ efforts to increase shareholder returns and in the value-up policy, demand is rising for products that invest in high-quality companies while also generating cash flow. The RISE Korea Value-Up Weekly Fixed Covered Call ETF caps the proportion of call options sold at 30%, aiming to participate in gains in the underlying assets while making monthly distributions using option premiums and dividends.”

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