SOL Palantir Covered Call OTM Bond Hybrid ETF to Pay Monthly Distribution

Shinhan Asset Management announced on September 1 that its "SOL Palantir Covered Call OTM Bond Hybrid" and "SOL Palantir US Treasury Covered Call Hybrid" ETFs will pay monthly distributions of 210 KRW and 150 KRW per share, respectively. The annualized distribution rates reach 26.1% and 16.6%, respectively.

The SOL Palantir Covered Call OTM Bond Hybrid ETF has recorded the highest monthly distribution rate of 2.04% among the 44 covered call ETFs listed in Korea, maintaining the top position for four consecutive months since its listing.

Having established itself as a monthly dividend strategy product that combines both profitability and stability, it has attracted continued inflows from pension investors. As a result, its net assets have surged from 8 billion KRW at the time of listing to 110 billion KRW in just four months.

Kim Gideok, Head of Quant & ETF Management at Shinhan Asset Management, explained, "Palantir's stock price fell by more than 15% in mid-August due to several factors: controversy among some experts over overvaluation, profit-taking by institutional investors, and heightened uncertainty in the AI market." He added, "The SOL Palantir Covered Call ETF series was able to cushion losses through high monthly dividends while also limiting the extent of the decline."

Palantir (PLTR) is a company that provides solutions to various industries through its AI-based analytics platform. Its core products include Gotham for counter-terrorism and cyber defense, Foundry for supply chain and productivity optimization, Apollo for operational platform automation, and AIP (AI Platform) for enterprise generative AI solutions. Recently, Palantir has been expanding its customer base beyond defense and intelligence agencies to global private enterprises, leading the AI software industry.

Kim further stated, "Despite various controversies, Palantir has continued to deliver solid results, with revenue in the first half of 2025 increasing by 48% year-on-year. The company also signed a major contract with the US Army worth approximately 14 trillion KRW." He added, "Given that Palantir is recognized for its high growth potential in both the public and private sectors, there is a strong possibility that it will establish itself as a leading global AI software company in the mid- to long-term."

The SOL Palantir Covered Call OTM Bond Hybrid ETF employs an aggressive covered call strategy, participating partially in Palantir's stock price gains while generating income by selling OTM call options. The SOL Palantir US Treasury Covered Call Hybrid ETF allocates up to 30% to Palantir and pursues stable monthly dividend income by employing a covered call strategy using US long-term Treasury bonds.

This structure allows investors to pursue both capital gains and monthly dividend income by investing in Palantir, a global AI leader, while utilizing a covered call strategy. It is eligible for 100% investment through pension savings and retirement pension (DC/IRP) accounts. Since option premiums are not subject to US withholding tax, the tax deferral effect within tax-advantaged accounts can also be maximized.