Samsung Asset, KODEX US Investment Target Premium Monthly Dividend ETF 2 Types Listed

Samsung Asset Management announced on the 28th that it will newly list two ETFs: 'KODEX US Dividend +10% Premium Dow Jones ETF' and 'KODEX US AI Tech TOP10 +15% Premium ETF.' These products aim to pay dividends of over 1% monthly by utilizing some call option sales along with capital gains.

KODEX US Dividend +10% Premium Dow Jones is a target premium strategy product that invests in the same portfolio as SCHD (Schwab US Dividend Equity ETF), which is familiar to domestic investors as a US dividend growth ETF, while simultaneously selling S&P 500 call options flexibly every month. It aims to pay the highest monthly dividend of about 1% among SCHD-tracking monthly dividend ETFs listed domestically. The target premium is 10%.

KODEX US AI Tech TOP10 +15% Premium focuses on investing in 10 leading US AI tech companies driving the global AI market, while also selling some Nasdaq 100 weekly call options that expire every week to secure an annual premium of about 15%.

To properly reflect AI industry trends, instead of a simple market capitalization weighting method, the AI investment approach applies both market capitalization and LLM (Large Language Model) scores to select the top 10 AI tech stocks. The product differentiates itself by including about 30% of AI hardware representative companies such as TSMC, Nvidia, AMD, and Broadcom, alongside big tech companies leading the AI software sector like Microsoft, Google, Apple, Amazon, Meta, and Tesla.

Both products target dividend-oriented investors who want to invest in companies that have steadily grown with dividends increasing for 10 consecutive years, as well as aggressive investors seeking capital gains by investing in the AI innovation industry with long-term high growth expectations. They aim to provide relatively high monthly distributions along with capital gains.

By setting a target premium and lowering the proportion of call option sales, the products are designed to participate actively in stock price increases while generating monthly dividend income. This overcomes the drawback of the overall covered call selling strategy, which limits participation in stock price appreciation beyond a certain level. Additionally, the call option selling targets are set according to each product’s characteristics: S&P 500 for KODEX US Dividend +10% Premium Dow Jones and Nasdaq 100 for KODEX US AI Tech TOP10 +15% Premium, thereby expanding monthly dividend size and increasing stock price participation rates. The total expense ratio for both products is 0.39% per year.

Im Tae-hyuk, Executive Director of ETF Management at Samsung Asset Management, said, "We reflected the fact that both conservative investors focusing on dividends and aggressive investors seeking capital gains have shown great interest in monthly dividend products recently. We launched products aiming to pay monthly dividends of over 1% by applying a target premium strategy to the representative stable product US Dividend Dow Jones and the growth product US AI Tech TOP10, which is considered a trend."

Samsung Asset Management is conducting a quiz event for the two monthly dividend products. Anyone can participate on the KODEX website until the 11th of next month.