KODEX US Dividend Covered Call Active ETF Surpasses 400 Billion KRW in Net Assets

As volatility in the capital markets increases, demand is rising for investment destinations that can secure long-term cash flow. The growing interest in monthly dividend ETFs is driven by the emphasis on stable interest income and the importance of global asset allocation.

On June 2, Samsung Asset Management announced that the net assets of the KODEX US Dividend Covered Call Active ETF have surpassed 400 billion KRW. In just five months this year, net assets increased by 269 billion KRW, reaching a total of 401.4 billion KRW.

Despite recent market conditions characterized by numerous external variables, individual net buying has been rapidly increasing due to the ETF's stable returns and excellent monthly dividend rate. Since the beginning of this year, the cumulative net inflow from individual investors into the KODEX US Dividend Covered Call Active ETF has reached 235.7 billion KRW. This is the largest scale among US dividend stock-type covered call ETFs listed in Korea.

The KODEX US Dividend Covered Call Active ETF is a product listed in Korea in September 2022, modeled after the 'DIVO' ETF, which has been recognized in the US for its flexible covered call management strategy, delivering high returns and stable distribution performance. The ETF includes the VOO ETF (20.74%) and the DIVO ETF (19.56%), and holds a high proportion of financial stocks such as VISA (3.55%), JPMorgan (3.45%), and CME Group (3.38%), as well as tech stocks like Microsoft (2.98%) and IBM (2.96%).

Compared to the 11 US dividend Dow Jones-type ETFs listed in Korea, the KODEX US Dividend Covered Call Active ETF ranked first in returns over all major periods: 3 months, 6 months, 1 year, and 2 years. The ETF’s returns were ▲ 3 months: -4.7%, ▲ 6 months: -2.7%, ▲ 1 year: 12.8%, ▲ 2 years: 34.5%, outperforming all US dividend Dow Jones-type ETFs.

The monthly distribution rate has been steadily increased from 0.47% at the time of listing to as high as 0.8% per month. The current dividend yield stands at approximately 9.6% per year, demonstrating the ETF’s reputation for dividend growth.

Ma Seunghyun, a manager at Samsung Asset Management, said, "Individual investors are showing interest after confirming that the KODEX US Dividend Covered Call Active ETF has achieved a monthly distribution rate of around 9% per year and stable short- and long-term returns." He added, "This is a product that pursues both high returns and high dividends through an active management approach that dynamically adjusts portfolio allocations according to market conditions."