KODEX US Dividend Covered Call Active, No.1 in Individual Net Purchases Among Covered Call Products

Samsung Asset Management announced on the 26th that the KODEX US Dividend Covered Call Active ETF recorded a cumulative net purchase of 94.1 billion KRW by individual investors this year. It is the largest among the 36 covered call ETFs. Its net assets increased by 82% in just two months, from 132.4 billion KRW at the end of last year to 241.5 billion KRW.

KODEX US Dividend Covered Call Active was launched domestically in September 2022 by replicating the US 'DIVO' ETF, which is well known among overseas Korean investors. In the US, DIVO has recorded a 1-year return of 15.1% and a 3-year return of 31.6%, outperforming the 'SCHD (US Dividend Dow Jones)' ETF, which posted 14.3% for 1 year and 22.8% for 3 years. KODEX US Dividend Covered Call Active also ranked first in returns among 14 US dividend equity ETFs listed domestically, with 23.5% for 1 year, 40.6% for 2 years, and 40.6% since its listing in 2022. It has outperformed all US Dividend Dow Jones products.

KODEX US Dividend Covered Call Active continuously invests in US companies with growing dividends. It pursues a strategy that seeks both dividends and capital gains simultaneously. In 2022, it focused on dividend growth stocks as an inflation hedge, and from 2024, it has strategically included dividend growth stocks preparing for the AI and Trump 2.0 era. Recently, representative holdings include Meta, Microsoft, and IBM. These companies have shown excellent performance by continuously increasing dividends and aligning with major market trends.

Unlike general covered call products, KODEX US Dividend Covered Call Active is the only product that flexibly manages call option sales on a monthly and weekly basis depending on market conditions. During market downturns, it defends performance through option sales, and during market upturns, it builds an aggressive portfolio mainly composed of stocks and short-term options.

KODEX US Dividend Covered Call Active is managed with advice from the US stock options specialist advisory firm CWP (Capital Wealth Planning). Through this, it was the first ETF in the industry to be listed using US individual stock option covered calls. CWP is known locally as the advisory firm for the stock option covered calls of the US DIVO ETF, which has grown to about 5.8 trillion KRW in size and played a major role in DIVO receiving a 5-star rating from Morningstar.

Ma Seung-hyun, a manager at Samsung Asset Management, said, "It seems that individual investors are flocking to KODEX US Dividend Covered Call Active after directly confirming its high monthly distribution rate of 8-9% annually and high return performance of over 10% annually," adding, "A product that utilizes a flexible active covered call strategy will be a good investment tool for investors who prefer stable cash flow."