Samsung KODEX Leads Growth in Covered Call ETF Market

4 Out of 5 Products With Over 100 Billion KRW Net Asset Growth Are KODEX
Covered Call ETF Market Grows 22.9% This Year
KODEX Leads Rapid Expansion With Diverse Lineup

The covered call ETF market continues to grow steadily this year. While the overall ETF market has grown by 7.6% this year, the size of the covered call ETF market has increased by 22.9%.

Samsung Asset Management announced on the 5th that the total net assets of 10 KODEX covered call ETFs reached 2.4 trillion KRW, increasing by 800 billion KRW since the beginning of the year.

Including KODEX, the domestic covered call ETF market is experiencing rapid growth. It grew 22.9% from 6.7 trillion KRW at the end of last year to 8 trillion KRW in just two months. Among the 953 ETFs, 48 have seen net asset increases of over 100 billion KRW this year. The fact that there are as many as five listed covered call products also confirms a differentiated growth trend.

KODEX is leading the growth of covered call ETFs. KODEX currently offers a total lineup of 10 covered call ETF products. Among the covered call ETFs with net asset increases of over 100 billion KRW this year, four are KODEX products.

The KODEX 200 Target Weekly Covered Call and KODEX Financial High Dividend TOP10 Target Covered Call grew by 585% and 346%, respectively, compared to the end of last year. The KODEX 200 Target Weekly Covered Call is also the product with the highest net asset growth rate and increase amount this year. It has established itself as a preferred ETF for retirement investors who require stable monthly cash flow.

The KODEX US Dividend Covered Call Active, which replicates the ‘DIVO’ ETF recognized in the US for its flexible covered call strategy delivering high returns and stable distribution performance, is the only covered call ETF to surpass 100 billion KRW in net individual purchases since the beginning of the year. It is outperforming the representative dividend investment product, the ‘US Dividend Dow Jones (SCHD)’ type product.

Im Taehyuk, Head of ETF Management at Samsung Asset Management, introduced, "The domestic covered call ETF market has shown rapid growth over the past two years thanks to the evolution of covered call strategies, diversification of underlying assets, and a surge in investor demand for monthly distribution products."

He added, "Samsung KODEX continues to develop covered call ETF products linked to overseas indices, stocks, bonds, as well as domestic indices and stocks. We will strive to offer products with various assets through new structures."