SOL Gold Covered Call Active ETF Pays First Monthly Dividend

The 'SOL Gold Covered Call Active ETF,' which allows investors to expect both returns from gold investment and dividend income, will pay its first monthly dividend.

According to Shinhan Asset Management, investors who held the SOL Gold Covered Call Active ETF as of April 28 will receive a dividend of 40 KRW per share on May 2. The annualized distribution rate is approximately 4.32%.

The SOL Gold Covered Call Active ETF tracks more than 90% of the international gold price, and utilizes a covered call strategy to use option premiums as a source of distribution. It is the only product designed to provide monthly dividends at an annual rate of around 4%, even though gold itself does not yield interest or dividends.

Kim Gideok, Head of Quant & ETF Management at Shinhan Asset Management, introduced the product by saying, "The SOL Gold Covered Call Active ETF is designed to compensate for the drawback of gold as an asset that does not pay interest or dividends, making it suitable for pension investors who seek both capital gains and stable dividend income."

He added, "Because it tracks the international gold price, it is free from domestic and overseas price disparity risks such as the so-called 'Kimchi Premium.' In periods of high price volatility, the monthly dividend can serve as a buffer for returns."

Since its listing in March, the SOL Gold Covered Call Active ETF has delivered excellent performance. Its return to date is 13.32%, surpassing the market returns of KOSPI and S&P 500 over the same period. It also outperformed the KRX gold spot price, which rose by 10.56%.

Kim further explained, "Recently, the international gold price has risen to around $3,300 per ounce, so it is necessary to be cautious about short-term price volatility. However, factors such as global uncertainty and trade conflicts caused by U.S. tariff policies, as well as the weakening dollar, continue to support strong demand for gold as a safe-haven asset."

He emphasized, "The SOL Gold Covered Call Active ETF allows investors to effectively participate in gold price increases, and it is highly valuable as a tool for portfolio diversification."

The SOL Gold Covered Call Active ETF can be invested in through tax-advantaged accounts such as ISA, pension savings, and retirement pensions (DC/IRP). Since the main source of distribution, the option premium, is not subject to U.S. withholding tax, the tax-deferral benefit is fully maintained within these accounts.