RISE 200 Weekly Covered Call ETF Surpasses 500 Billion Won in Net Assets

KB Asset Management announced on September 26 that the net assets of the KOSPI 200 index-tracking monthly dividend exchange-traded fund (ETF), the "RISE 200 Weekly Covered Call ETF," have surpassed 500 billion won. This marks an increase of 100 billion won in just two months since it exceeded 400 billion won in July.

Recently, as expectations for interest rate cuts coexist with volatility in global financial markets, there has been growing demand from investors seeking stable cash flows. Monthly distribution ETFs utilizing covered call strategies are gaining attention among investors as products that can generate steady returns while leveraging volatility.

The RISE 200 Weekly Covered Call ETF, which was listed in March last year, is the first weekly covered call ETF in Korea. By selling call options with maturities within one week, it offers a differentiated income strategy. While the upside of the underlying index is limited, the ETF provides stable and consistent monthly distributions by utilizing option premiums.

The performance of the RISE 200 Weekly Covered Call ETF is notable. As of the end of last month, the monthly distribution rate was 1.51%, and the cumulative annual distribution rate over the past year reached 15.98%. If an investor had invested 100 million won a year ago, they would have received approximately 15.98 million won in pre-tax distributions.

According to FnGuide, a fund evaluation firm, as of September 25, the six-month and year-to-date returns of the RISE 200 Weekly Covered Call ETF were 28.37% and 36.55%, respectively.

Tax benefits also enhance the appeal of this investment. The premium income from selling call options is classified as tax-exempt, providing tax-saving effects for those subject to comprehensive financial income taxation.

No Areum, Head of the ETF Business Division at KB Asset Management, stated, "The RISE 200 Weekly Covered Call ETF has established itself as a differentiated investment alternative for investors through a tax-efficient income strategy that leverages volatility." She added, "We will continue to make it an attractive investment destination for both pension investors and high-net-worth individuals by offering tax benefits and consistent monthly distributions."