Monthly Dividend Gold: SOL Gold Covered Call Active ETF Listed

Tracking Over 90% of International Gold Prices
Aiming for Annual Dividends of Around 4%

Shinhan Asset Management announced on the 11th that it will list the monthly dividend ETF, SOL Gold Covered Call Active ETF, on the Korea Exchange, which allows investment in gold while receiving dividends.

The ETF aims to track over 90% of the international gold price as a principle, while pursuing an annual 4% dividend by distributing option premiums generated through a covered call strategy.

Kim Ki-deok, Head of Quant & ETF Management at Shinhan Asset Management, said, "Recently, the rate of increase in gold prices has significantly outperformed major assets, and investment demand for gold, which has transformed from a safe asset to an investment asset, is gradually increasing." He added, "The SOL Gold Covered Call Active ETF complements the drawback of gold investment, which does not pay interest or dividends, allowing investors to pursue both capital gains and dividend income, making it suitable for pension investors seeking stable returns."

With the recent trend of central banks around the world increasing their gold holdings, the fragmentation of the world economy, and gold replacing the dollar, along with issues related to tariffs and increasing trade disputes since President Donald Trump's inauguration, and the weakening dollar trend, gold prices have continued to rise steadily. Since President Donald Trump's inauguration, gold has emerged as the biggest beneficiary of the Trump trade compared to assets such as the dollar, Bitcoin, and stocks.

As investor interest grows, issues caused by premiums and discounts arising from differences in demand and supply across various trading markets in the gold spot market amid the sharp rise in gold prices have been recurring. Recently, due to increased demand for safe assets amid tariff uncertainties under President Trump, excess demand occurred in the domestic KRX gold spot market, causing premiums to expand by more than 20%, and during the process of resolving the gap, sharp price fluctuations also occurred.

Kim said, "When the increase and resolution of domestic gold spot premiums repeat during volatile gold price periods, it becomes difficult to predict actual investment performance, so risk management should be carefully considered." He explained, "From the perspective of eliminating variables in gold investment, we recommend investing in products that track the standardized international gold price."

The SOL Gold Covered Call Active ETF can be invested in through ISA accounts as well as pension savings and retirement pension (DC/IRP) accounts. The first monthly dividend will be paid on May 2, 2025.

Kim added, "Because it tracks the international gold price, it is free from the kimchi premium risk and can be invested in pension accounts, which is expected to greatly enhance investment efficiency." He also noted, "Since the option premium, which is the source of the dividend, is not subject to U.S. withholding tax, the tax deferral effect in tax-exempt accounts is maintained."

Shinhan Asset Management will hold two simultaneous events?a quiz and SNS certification?to commemorate the new listing of the SOL Gold Covered Call Active ETF until the 31st.