KB Asset Management announced on the 20th that its KOSPI 200-tracking monthly dividend exchange-traded fund (ETF), 'RISE 200 Weekly Covered Call ETF,' has surpassed 300 billion KRW in net assets.
As word spreads that investing 100 million KRW can yield dividends exceeding 10 million KRW in just one month, individual investors continue to buy. As of the end of January, the dividend yield was 1.50%, meaning investors who put in 100 million KRW in December last year could receive approximately 15 million KRW in dividends within a month.
Since its launch, KB Asset Management has paid a total dividend of 1,293 KRW per share over 11 months. With an average monthly dividend yield of 1.23%, the cumulative dividend yield reaches 13.55%.
Out of the 11 dividend payments made since listing, only 5 were subject to taxation. Only part of the dividends were taxable because most of the dividend sources come from profits generated by option sales, which are tax-exempt.
Launched in March last year, KB Asset Management's 'RISE 200 Weekly Covered Call ETF' is a covered call ETF based on domestic stocks. Notably, it was the first in Korea to introduce a weekly covered call strategy by selling call options with maturities of less than one week.
Unlike traditional monthly covered call ETFs that sell call options once a month, this product sells call options every Monday and Thursday. This allows it to collect higher call option selling premiums compared to monthly covered calls.
No Areum, Head of the ETF Business Division at KB Asset Management, said, "Since the dividend payment date in September last year, the dividend yield of RISE 200 Weekly Covered Call ETF was raised from 1.00% to 1.50%. We will continue to do our best to manage performance to ensure stable dividend payments going forward."
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