SOL Gold Covered Call Active ETF Fund Inflows Gain Momentum

Individual investment funds are flowing into Shinhan Asset Management's SOL Gold Covered Call Active ETF. It is interpreted that investment demand from gold investors is shifting as performance differences widen in the resolution phase of the 'Kimchi Premium,' the gap between domestic gold prices and international gold prices.

Shinhan Asset Management announced on the 25th that the SOL Gold Covered Call Active ETF, launched on the 11th, recorded a return of 4.85% since its listing. This outperformed the domestic gold spot price increase rate of 3.31% during the same period.

The SOL Gold Covered Call Active ETF is a monthly dividend ETF that aims for an annual dividend of 4% by distributing option premiums through a covered call strategy, while primarily tracking over 90% of the international gold price.

Showing stable performance, individual investors' net purchase amounts are gradually increasing, having sold out the initial offering of 8 billion KRW and actively expanding its net asset size.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, explained, "Global uncertainties persist, and the rise in international gold prices, which surpassed $3,000 per ounce, has not weakened," adding, "The SOL Gold Covered Call Active ETF tracks international gold prices, so it is free from Kimchi Premium risk." He further added, "It complements the drawbacks of gold investment by pursuing both capital gains and dividend income, making it suitable for pension investors seeking stable returns."

The SOL Gold Covered Call Active ETF can be invested in through ISA, pension savings, and retirement pension (DC/IRP) accounts. Since the option premium, which is the source of the dividend, is not subject to U.S. withholding tax, it also maintains the tax deferral benefits in tax-exempt accounts.

Kim said, "Issues such as U.S. tariff policies continue, and factors that could affect short-term volatility in gold prices, such as the Russia-Ukraine ceasefire negotiations and conflicts in the Middle East, have not been resolved," adding, "The monthly dividends to be paid are expected to enhance the stability of gold investments."

The first monthly dividend of the SOL Gold Covered Call Active ETF will be paid on May 2, 2025.

To commemorate the new listing of the SOL Gold Covered Call Active ETF, Shinhan Asset Management is conducting two events?a quiz and SNS certification?until the 31st.