First Monthly Dividends Paid for Two SOL Palantir Covered Call ETFs

Shinhan Asset Management announced that the 'SOL Palantir Covered Call OTM Bond Mix' and 'SOL Palantir US Treasury Covered Call Mix' ETFs, which were launched last month, will pay their first monthly dividends on June 2.

The dividend per share for SOL Palantir US Treasury Covered Call Mix and SOL Palantir Covered Call OTM Bond Mix is 150 KRW and 230 KRW, respectively. The annualized distribution rates reach 17.16% and 26.28%.

These ETFs invest in Palantir (PLTR), a global leader in AI software, and utilize a covered call strategy to pursue stable monthly dividends along with capital gains. They are eligible for 100% investment through retirement pension (DC/IRP) accounts, including personal pension savings.

One advantage is that the main source of the dividend, the option premium, is not subject to US withholding tax, allowing investors to fully benefit from tax deferral within tax-advantaged accounts.

Kim Gideok, Head of Quant & ETF Management at Shinhan Asset Management, stated, "When holding 100% of the underlying stocks and selling 103% OTM weekly call options on Palantir shares, the option premium yield is higher than that of Tesla and Nvidia." He added, "If Palantir's stock price rises sharply in the short term, profits may be relatively limited, but this structure enables the pursuit of high dividends along with capital gains."