Investor interest in U.S. artificial intelligence (AI) tech companies remains strong. Due to demand for monthly dividends and expectations for growth in the AI industry, investors are focusing on monthly dividend tech ETFs.
Samsung Asset Management announced on the 23rd that the ‘KODEX US AI Tech TOP10+15% Premium’ recorded net assets of 300.4 billion KRW just over four months after its listing. Individual investors continued to flow in due to demand for monthly dividends and expectations for AI industry growth. The cumulative net purchase amount by individual investors reached 236.6 billion KRW.
Among all AI-themed ETFs listed domestically, it is the largest in terms of net assets and individual net purchase volume, indicating a significant increase in individual investors who want to receive high monthly dividends and invest long-term in the AI tech industry.
‘KODEX US AI Tech TOP10+15% Premium’ focuses on investing in 10 leading U.S. AI tech companies driving global AI tech industry growth, while partially selling Nasdaq 100 weekly call options that expire every week to pursue a premium of around 15% annually. It is designed to actively participate in both monthly dividend income and stock price appreciation. It is analyzed that the product attracted buying interest by compensating for the drawback of the overall covered call selling strategy, which does not allow participation beyond a certain level of the underlying asset’s price increase.
Dividends are paid based on the last business day of each month, and for this month, purchasing by the 26th allows investors to receive dividends based on the target premium. At the end of last month, the product recorded a dividend of 124 KRW, and since its listing, it has paid a total of 415 KRW over three distributions, achieving a top-level dividend yield of 4.18%. The total expense ratio is also relatively low at 0.39% compared to similar products.
Samsung Asset Management explains that since this product is designed to invest in leading U.S. AI tech companies while aiming to pay high monthly dividends, it is a product worth considering for both dividend-oriented investors seeking stable monthly dividends and aggressive investors pursuing capital gains by investing in the AI innovation industry expecting long-term high growth.
Song Ah-hyun, a manager at Samsung Asset Management, said, "With the start of interest rate cuts, additional large-scale investments are expected in the AI industry, so investor interest in the overall AI industry will increase." She added, "KODEX US AI Tech TOP10+15% Premium has constructed a differentiated portfolio that evenly includes AI software and AI hardware," and "Using weekly options to increase market participation has received positive responses from investors."
‘KODEX US AI Tech TOP10+15% Premium’ will change its name to ‘KODEX US AI Tech TOP10 Target Covered Call’ starting from the 25th.
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