Korea Exchange to Announce Three Types Including 'KRX Semiconductor TR Index' on the 9th

The Korea Exchange announced on the 4th that it plans to release three new indices, including the 'KRX Semiconductor TR Index' which invests in the semiconductor industry, on the 9th.

Yonhap News

The 'KRX Semiconductor TR Index' is a total return index of the 'KRX Semiconductor Index,' calculated by assuming the reinvestment of cash dividends from the constituent stocks of the original index, thereby reflecting a total return that includes dividend yields. The exchange explained that this reflects investor demand aiming to maximize investment returns in the semiconductor industry, as continuous growth of semiconductor companies is expected due to increased semiconductor demand driven by advancements in cutting-edge technologies such as artificial intelligence (AI). From January 2011 to the 30th of last month, the KRX Semiconductor TR Index’s return was 20.5 percentage points (p) higher than the original index (KRX Semiconductor Index). The 'KRX Semiconductor TR Leverage Index' is a strategic index that tracks twice the daily return of the KRX Semiconductor TR Index.

The 'KOSPI High Dividend Weekly Fixed Covered Call Index' is an index that buys high-dividend stocks listed on the KOSPI market and sells KOSPI 200 weekly call options at a fixed 30% weight. By fixing the call option selling ratio at 30% and partially selling, it can follow part of the market’s upward trend compared to the existing covered call with a 100% selling ratio. The exchange expects this index to satisfy income-type demand that regularly generates stable returns and investor demand seeking some market upside. Comparing returns from September 23, 2019, to the 30th of last month, the cumulative return of the KOSPI High Dividend Weekly Fixed Covered Call Index was approximately 30.3%, which is 5.1 percentage points higher than the existing KOSPI High Dividend Call Selling Index.