SOL Palantir Covered Call OTM Bond Mixed ETF Pays 230 KRW Monthly Dividend per Share

Shinhan Asset Management announced on July 1 that the 'SOL Palantir Covered Call OTM Bond Mixed' and 'SOL Palantir US Treasury Covered Call Mixed' ETFs will pay monthly distributions of 230 KRW and 150 KRW per share, respectively, for the second consecutive month.

The annualized distribution rates for these ETFs are 26.16% and 16.98%, respectively. The SOL Palantir Covered Call OTM Bond Mixed ETF provides the highest per-share distribution among the 42 covered call ETFs listed in Korea. It is attracting attention as a strategic product that aims to deliver both high returns and stable monthly dividends.

Kim Gideok, Head of Quant & ETF Management at Shinhan Asset Management, stated, "As Palantir's share price, which is the underlying asset, has risen, we were able to generate sufficient option selling premiums, enabling us to pay a special dividend in addition to the regular dividend." He added, "Our basic target is to provide an annual distribution yield of around 18%, and we pay special dividends when additional profits are realized."

By investing in Palantir (PLTR), a leading AI software company, and utilizing a covered call strategy, these ETFs aim to provide stable monthly dividends along with capital gains. The SOL Palantir Covered Call OTM Bond Mixed ETF is an aggressive strategy product that seeks to participate partially in Palantir's share price appreciation while targeting a monthly dividend yield of around 18% through option premiums.

The SOL Palantir US Treasury Covered Call Mixed ETF increases the allocation to Palantir up to a maximum of 30%, and aims for a stable monthly dividend yield of around 12% by employing a covered call strategy based on US long-term Treasury bonds.

These ETFs are fully eligible for investment through retirement pension (DC/IRP) accounts, including personal pension savings. In particular, since the option premium, which is the main source of the distribution, is not subject to US withholding tax, investors can fully benefit from tax deferral within tax-advantaged accounts.

Kim further explained, "Since April, Palantir's share price has surged, bringing its market capitalization into the top 20 in the US. Recently, Palantir has further strengthened its position as a key company connecting AI and the real economy by signing a strategic contract to supply its AI platform for next-generation nuclear projects such as SMR, in collaboration with a private nuclear energy company."