Samsung Asset, KODEX US AI Tech TOP10 +15% Premium Sold Out

The U.S. investment target premium monthly dividend ETF, ‘KODEX US AI Tech TOP10+15% Premium,’ sold out on its first day of listing.

Samsung Asset Management announced on the 29th that KODEX US AI Tech TOP10+15% Premium recorded the highest net purchase amount among all ETFs, with individual investors buying 18.2 billion KRW. As buying demand exceeded the initial listing amount of 20 billion KRW, liquidity providers (LPs) executed an additional issuance of nearly 30 billion KRW to meet investor demand.

KODEX US AI Tech TOP10+15% Premium carefully selected the top 10 U.S. AI tech stocks by applying an AI investment method that incorporates both market capitalization and LLM (Large Language Model) scores, rather than a simple market cap-weighted approach, to accurately reflect AI industry trends. It includes leading big tech companies driving the AI software sector such as Microsoft, Google, Apple, Amazon, Meta, and Tesla, as well as AI hardware representatives like TSMC, Nvidia, AMD, and Broadcom, which make up about 30% of the portfolio, successfully differentiating the ETF.

While focusing investments on 10 leading U.S. AI tech companies dominating the global AI market, the ETF also sells some Nasdaq 100 weekly call options that expire every week to secure a premium of around 15% annually. Investors appear to have paid attention to the relatively higher market participation rate compared to existing products.

By setting a target premium and lowering the proportion of call option sales, the ETF is designed to actively participate in stock price increases along with monthly dividend income, addressing the drawback of traditional covered call strategies that limit participation in stock price appreciation beyond a certain level. This factor is analyzed to have driven investor buying interest. The total expense ratio of KODEX US AI Tech TOP10+15% Premium is also relatively low at 0.39% compared to similar products.

Im Taehyuk, Executive Director of ETF Management at Samsung Asset Management, said, "We reflected the fact that aggressive investors seeking capital gains by investing in mega growth trends have recently shown great interest in monthly dividend products," adding, "We launched KODEX US AI Tech TOP10+15% Premium with a structure that can pay out more than 1% in dividends every month."