Which Covered Call ETF Did Retail Investors Buy the Most This Year? ... 'KODEX 200 Target Weekly Covered Call'

KRW 3.2047 trillion in year-to-date net purchases by individual investors
Largest net assets among covered call ETFs listed in Korea

Samsung Asset Management said on November 10 that the KODEX 200 Target Weekly Covered Call ETF ranked first among covered call ETFs in cumulative net purchases by individual investors year to date.

The KODEX 200 Target Weekly Covered Call has attracted 3.2047 trillion won in individual investor funds year to date. It currently has net assets of 4.7757 trillion won, the largest among covered call ETFs listed in Korea.

As stock market volatility has increased this year, investors have poured funds into products that provide stable monthly distributions. Over the past month, the KODEX 200 Target Weekly Covered Call ETF attracted 481.1 billion won from individual investors. The KODEX 200 Covered Call Active, which launched in July this year, followed the KODEX 200 Target Weekly Covered Call and recorded net purchases of 1.1972 trillion won by individual investors in less than four months after its listing.

The KODEX 200 Target Weekly Covered Call is an ETF that pays monthly distributions based on holdings on the 15th of each month. It uses the KOSPI 200 Index as its underlying asset and seeks option premium income of around 15% annually by selling call options on a weekly basis. It also pays distributions by adding the dividend yield from investments in KOSPI 200 constituents.

The 15th of each month is the record date for distribution payments. The distribution for October was 281 won, representing a distribution yield of 1.57%. Distributions paid over the past year totaled 3,235 won, for a distribution yield of 22.25%. Investors must buy the ETF by November 11 to receive the distribution for November.

Lee Daehwan, a manager at Samsung Asset Management, said, "Investors are showing strong interest in covered call ETFs as an alternative in a volatile market. The KODEX 200 Target Weekly Covered Call allows investors to pursue participation in stock price gains, tax-free option premiums, and a monthly distribution strategy through a single product."

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