SOL Gold Covered Call Active ETF Achieves 11% Return Just One Month After Listing

Shinhan Asset Management announced on April 21 that the 'SOL Gold Covered Call Active ETF' has recorded a return of over 10% just one month after its listing. During the same period, the KOSPI and S&P 500 indices fell by -2.14% and -5.19%, respectively. The ETF outperformed the domestic gold spot price increase of 9.8%.

Kim Gideok, Head of Quant & ETF Management at Shinhan Asset Management, stated, "Global market volatility has increased due to the rising possibility of a global economic recession caused by President Donald Trump's tariff policies." He added, "While the value of the US dollar has declined by more than 8% since the beginning of the year, only gold prices have continued to rise."

He continued, "As investors' preference for safe-haven assets remains strong, the international gold price, which surpassed $3,000 per ounce at the time of the SOL Gold Covered Call Active ETF's listing, has broken through $3,300 within a month, reaching an all-time high."

The SOL Gold Covered Call Active ETF is a monthly dividend ETF that aims to track more than 90% of the international gold price, while distributing option premiums generated through a covered call strategy as a source of dividends, targeting an annual yield of 4%.

It is available for investment through accounts such as ISAs, pension savings, and retirement pensions (DC/IRP). Since the option premiums used as dividend sources are not subject to US withholding tax, investors can benefit from tax deferral effects in tax-advantaged accounts.

Kim explained, "In addition to global uncertainty caused by tariff policies and demand for the so-called Trump trade, gold prices are showing a structural upward trend as the US real interest rate and nominal dollar index?previously the main determinants of gold prices?decline. There is a high possibility that a new equilibrium will be established."

The SOL Gold Covered Call Active ETF will pay its first monthly dividend on May 2. The timing of dividend deposits may vary depending on each securities firm's policy.