Annual 15% Distribution Target... PLUS High Dividend Stock Weekly Covered Call ETF Listed

Hanwha Asset Management announced on the 5th that it will list the 'PLUS Gobaedangju Wicle Fixed Covered Call,' a covered call ETF that provides stable monthly dividends (monthly distributions) while allowing participation in market gains.

The PLUS Gobaedangju Wicle Fixed Covered Call ETF is based on the domestic representative dividend ETF, PLUS Gobaedangju. It employs a mismatch strategy using weekly call options on the KOSPI 200. The premium generated from dividends of the PLUS Gobaedangju portfolio stocks and the sale of KOSPI 200 weekly call options serves as the distribution source, designed to provide investors with a stable monthly distribution income targeting an annual limit of 15% and a monthly limit of 1.25%.

The ETF fixes the proportion of KOSPI 200 call option sales at 30% of total assets. This is to use the minimum necessary call options to secure an annual distribution of around 15% while partially overcoming the typical upside limitation of covered call ETFs.

The reason it can provide a target annual distribution of 15% with a small option ratio is that the underlying asset, PLUS Gobaedangju itself, delivers high dividend performance. Since its listing in 2012, PLUS Gobaedangju has consistently paid dividends at a level of 5-6% annually. Adding an additional premium of 9-10% through option sales completes a stable distribution payment structure.

PLUS Gobaedangju is the largest domestic high-dividend ETF in Korea, with net assets approaching 550 billion KRW. Since its listing in August 2012, its performance, including distributions, has recorded a total return of approximately 135.8%, outperforming the KOSPI 200's 31% rise over the same period.

PLUS Gobaedangju Wicle Fixed Covered Call offers excellent tax benefits compared to overseas dividend and covered call ETFs such as those in the U.S. Distributions paid based on the 'cash premium' obtained from domestic call option sales are tax-exempt. When using tax-advantaged accounts such as pensions and ISAs (Individual Savings Accounts), regardless of recent changes in foreign tax credit methods, the tax-exempt benefit of option premiums and the reinvestment of distributions received as stock dividends without taxation are possible. This maximizes the tax deferral effect, which is crucial for long-term investment.

Geum Jeong-seop, Head of the ETF Business Division at Hanwha Asset Management, introduced, "PLUS Gobaedangju Wicle Fixed Covered Call is a monthly dividend ETF that provides capital gains through relative performance and high-level distributions. The underlying asset, PLUS Gobaedangju, is a representative high-dividend investment product with high growth potential this year, aligned with the government's shareholder value enhancement policies."

He added, "If the recently discussed amendments to the Commercial Act and individual companies' plans to enhance corporate value gradually materialize, investors can expect not only stable dividend income but also additional returns through corporate value revaluation."