KB Asset Management announced that its 'RISE Daily Fixed Covered Call' Exchange Traded Fund (ETF) series has surpassed 300 billion KRW in net assets.
Amid heightened volatility in the global financial markets, the series has continued to attract steady inflows, demonstrating outstanding performance compared to similar products.
According to fund evaluation firm FnGuide on July 24, as of July 23, the 'RISE US AI Value Chain Daily Fixed Covered Call ETF' recorded returns of 12.45% for one month, 53.43% for three months, and 13.79% for six months. These figures place it first among 23 overseas covered call ETFs during the same periods.
Currently, KB Asset Management manages three 'RISE Daily Fixed Covered Call' ETFs: the 'RISE US AI Value Chain Daily Fixed Covered Call,' the 'RISE US Tech 100 Daily Fixed Covered Call,' and the 'RISE US Dividend 100 Daily Fixed Covered Call.'
These ETFs employ a 'third-generation covered call' strategy by selling call options daily, fixing the selling ratio at 10% of the underlying asset. This approach is designed to maximize call option premium income during periods of increased market volatility, while capturing more than 90% of the underlying index's upside, thereby achieving both income (monthly distribution) and growth (capital gains) objectives simultaneously.
The 'RISE Daily Fixed Covered Call' ETF series differentiates itself through both product strategy and underlying index design. The 'RISE US AI Value Chain Daily Fixed Covered Call' invests in 15 leading US companies representing the artificial intelligence (AI) value chain. Instead of simply selecting the largest companies by market capitalization, it chooses leading stocks across hardware, software, and services & infrastructure sectors, aiming for both growth potential and risk diversification.
The 'RISE US Dividend 100 Daily Fixed Covered Call' invests in 100 US-listed dividend growth stocks that have maintained dividends for over 10 years, while selling S&P 500 call options to pursue both stability and income.
The 'RISE US Tech 100 Daily Fixed Covered Call' diversifies investments across 100 US-listed tech companies and sells 10% of Nasdaq 100 call options daily, providing monthly distributions.
No Areum, Head of the ETF Division at KB Asset Management, stated, "With volatility in the global financial markets increasing, individual investors seeking both stability and income should pay attention to the fixed covered call series," adding, "We will continue to expand our lineup of strategic covered call ETFs to meet various investment demands."
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