Samsung Asset Management will list the 'KODEX 200 Covered Call Active' exchange-traded fund (ETF) on May 14, expanding its domestic equity covered call ETF lineup. The new active product builds on operational experience from 'KODEX 200 Target Weekly Covered Call,' which attracted over 2 trillion won from retail investors, by adding flexible adjustments to stock portfolio weights and option strategies to pursue excess returns. Covered call ETFs emerged as representative income investment vehicles in the domestic ETF market this year, aligning with monthly dividend demand.
Samsung Asset Management Differentiates New Product from Predecessor Fund
The KODEX 200 Covered Call Active ETF utilizes a covered call strategy based on KOSPI 200 while allowing portfolio managers to adjust stock portfolios and option selling strategies according to their judgment. The predecessor fund, KODEX 200 Target Weekly Covered Call, used KOSPI 200 index and weekly options to secure distribution resources, recording an annual dividend rate of approximately 17% over the recent 1 year and averaging about 1.42% monthly. Individual net purchases since the beginning of the year reached 2.1609 trillion won. The new product uses the 'KOSPI 200 Covered Call 5% OTM Index' as its benchmark and pursues excess returns based on market conditions, contrasting with the predecessor's passive index-tracking structure.
Fund Employs Flexible Stock Portfolio Management Strategy
The stock portfolio incorporates leading industries and stocks that drive the market in a flexible manner. The fund selects stocks expected to benefit from strengthened shareholder return trends, including treasury stock cancellation obligations, and considers next-generation leading themes related to artificial intelligence (AI) bottleneck resolution as inclusion targets. Rather than mechanically following KOSPI 200, the strategy adjusts weights according to market trends to enhance performance relative to the index.
Option Operations Use Weekly and Monthly Contracts Based on Market Conditions
Option management methodology is more segmented than existing products. When the index rises strongly, the fund increases stock portfolio exposure to enhance participation in upward markets. When the market moves sideways or undergoes corrections, the fund cross-sells weekly options and monthly options according to market liquidity to secure option premiums. The approach maintains the stable distribution structure of the covered call strategy while maximizing profit opportunities in rising markets.
Month-End Distribution Structure Targets Retirement and Income Investors
Distribution is designed as a month-end dividend method, targeting investors who want monthly cash flow and long-term investors utilizing pension accounts. Due to the characteristics of domestic equity ETFs, the tax burden on domestic stock trading gains and option premiums is relatively low, with dividend income tax applied only to stock dividends. However, covered call ETFs obtain premiums by selling options, which may limit some of the gains when stock prices surge rapidly. Investors need to consider the balance between stable distribution income and market upside participation. A Samsung Asset Management official stated that KODEX 200 Covered Call Active is a product that adds the advantages of active management based on operational know-how from the existing representative covered call product, and will become a new option for investors who want monthly dividends, participation in domestic stock market gains, and securing option premiums together.
FAQ
What is the KODEX 200 Covered Call Active ETF that Samsung Asset Management is listing on May 14?
The KODEX 200 Covered Call Active ETF is an active exchange-traded fund that uses a covered call strategy based on KOSPI 200, allowing portfolio managers to adjust stock portfolios and option selling strategies according to their judgment. The product uses the 'KOSPI 200 Covered Call 5% OTM Index' as its benchmark and pursues excess returns based on market conditions.
How does the new product differ from the existing KODEX 200 Target Weekly Covered Call fund?
The existing KODEX 200 Target Weekly Covered Call fund is a passive product that tracks a defined index, while the new KODEX 200 Covered Call Active fund flexibly adjusts stock portfolio weights by incorporating leading industries and stocks, and cross-sells weekly and monthly options according to market conditions to enhance performance relative to the index.
What are the distribution characteristics and tax considerations for this covered call ETF?
The fund employs a month-end dividend distribution method targeting investors who want monthly cash flow and pension account users. Due to domestic equity ETF characteristics, the tax burden on domestic stock trading gains and option premiums is relatively low, with dividend income tax applied only to stock dividends.
