Samsung Asset Management: "KODEX's Two Leading Financial ETFs Deliver Outstanding Returns"

Samsung Asset Management announced on July 21 that KODEX Securities, a leading domestic securities sector exchange-traded fund (ETF), recorded a return of 87.5% over the past three months, ranking first among all ETFs (excluding leveraged and inverse ETFs). During the same period, KODEX Financial High Dividend TOP10 Target Weekly Covered Call achieved a return of 43.6%, making it the top-performing covered call ETF in Korea.

Thanks to these high returns, net assets have also increased significantly. KODEX Securities' net assets grew more than tenfold in three months, rising from KRW 37.8 billion to KRW 402.9 billion. Notably, following the presidential election in June, net assets increased by more than KRW 302 billion, attracting considerable attention. KODEX Financial High Dividend TOP10 Target Weekly Covered Call's net assets nearly doubled over three months, growing from KRW 216.7 billion to KRW 399.8 billion. After the June presidential election, net assets increased by more than KRW 145.9 billion.

Individual net purchases of both ETFs also rose sharply after the presidential election. Due to the rise in financial stocks, KODEX Securities and KODEX Financial High Dividend TOP10 Target Weekly Covered Call each recorded individual net purchases of KRW 130.8 billion and KRW 110.3 billion, respectively, surpassing KRW 100 billion in individual net purchases in less than two months. During the same period, KODEX Securities also saw KRW 58.5 billion in net purchases by banks, demonstrating continued interest from institutional investors as well as individuals.

KODEX Securities tracks the KRX Securities Index, which is composed of leading companies in Korea's securities industry weighted by market capitalization. It is a representative dividend-related ETF, with a high proportion of financial sector stocks, placing it among ETFs with high dividend yields. Its annual distribution rate reaches 4.4%.

KODEX Financial High Dividend TOP10 Target Weekly Covered Call is a monthly dividend covered call product that invests in leading domestic financial companies, allowing investors to benefit from both stock price appreciation and stable cash flow. It aims for a monthly dividend yield of around 15% per year through dividend income from financial stocks and option premiums. The product stands out for reflecting a greater extent of stock price appreciation in its portfolio compared to traditional covered calls, as well as for its tax-exempt status. These advantages are rapidly attracting funds from individual investors seeking regular cash flow.

Lee Daehwan, a manager at Samsung Asset Management, said, "In the first half of the year, the financial sector is expected to continue its record-breaking performance due to increased trading volume in the domestic stock market." He added, "In addition, policy benefits such as amendments to the Commercial Act and the introduction of separate taxation for dividend income are expected to further boost investor interest in financial sector ETFs in the second half of the year."