[Provided by Samsung Asset Management]
[Provided by Samsung Asset Management]

Samsung Asset Management announced Tuesday the listing of the KODEX 200 Covered Call Active ETF, which concentrates investment in South Korea's leading industries and core companies while pursuing stable monthly distributions and excess returns through an options-selling strategy.

The product is an evolved version of KODEX 200 Target Weekly Covered Call, the flagship offering in the domestic covered call market. Over the past year, KODEX 200 Target Weekly Covered Call delivered monthly distributions at an annualized rate of around 17 percent (based on ETF Check data), paid around the middle of each month, and recorded net individual purchases of 3.1 trillion won ($2.06 billion) over the same period.

The newly listed KODEX 200 Covered Call Active is designed to build on the existing product's management approach while paying distributions based on the last day of each month.

The ETF allocates a higher weighting to core industries driving the Kospi market. Specifically, it overweights AI semiconductor stocks and key materials, parts and equipment companies with high added value relative to its benchmark index.

The options strategy is also flexible: in a rising market, the fund adjusts the proportion of options sold to maximize participation in share price gains, while in falling or sideways markets it secures stable options-selling premium income to cushion against downside.

The ETF also carries tax advantages. Under applicable law, income from domestic options premiums and capital gains from domestic equity trading are exempt from taxation. Only dividends from stocks are subject to a 15.4 percent tax.

The record date for the ETF's first distribution has been set for July 31. Investors who purchase shares by July 29 — two business days prior — will be eligible for the first distribution. The ETF is available through pension savings accounts as well as defined-contribution and individual retirement pension accounts.

"The domestic stock market remains undervalued relative to corporate earnings fundamentals," said Song A-hyeon, a fund manager at Samsung Asset Management. "This product is well suited for investors who want to capture stable returns by leveraging high volatility while also participating in future share price upside."

Samsung Active Asset Management also listed the KoAct Optical Fiber & Satellite Network Active ETF on Tuesday, which invests in domestic companies in network infrastructure — a next-generation growth segment of the AI industry — as it seeks to attract investors.


jiyun@heraldcorp.com