Business · Markets · 7 hrs ago

KODEX 200 Target Weekly Covered Call ETF leads individual buying

KODEX 200 Target Weekly Covered Call ETF leads individual buying

Samsung Asset Management says its KODEX 200 Target Weekly Covered Call ETF led individual buying among covered-call ETFs listed in South Korea this year.

As of November 9, investors had put a net 3.2 trillion won into the fund, and its net assets stood at 4.7 trillion won.

The fund invests in companies in the KOSPI 200 and sells call options each week to seek option income.

It aims for option premiums equal to about 15% a year, alongside dividends from its shares.

The manager links strong demand to investors seeking monthly distributions during volatile markets.

The fund paid 281 won per unit in October, equal to a distribution rate of 1.57%; its distributions over the past year totalled 3,235 won per unit.

It pays monthly, based on the 15th of each month, and the next payment is due on that schedule.

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