Two KODEX KOSPI 200 Covered Call ETFs See Individual Net Purchases Top 4 Trillion Won

[Financial News] As volatility in the domestic stock market increases, individual investors’ money continues to flow into covered call exchange-traded funds (ETFs) based on the KOSPI 200. Since the start of the year, individual investors have made more than 4 trillion won in net purchases of two related ETFs from Samsung Asset Management.
Samsung Asset Management said on the 26th that individual investors’ cumulative net purchases of the KODEX 200 Target Weekly Covered Call and KODEX 200 Covered Call Active had exceeded 4 trillion won combined since the start of the year.
The KODEX 200 Target Weekly Covered Call recorded the highest individual net purchases of any covered call ETF, at 3.0092 trillion won. Another 1.1305 trillion won flowed into the KODEX 200 Covered Call Active.
Both products are based on the KOSPI 200, but their investment strategies differ. The KODEX 200 Target Weekly Covered Call invests in the KOSPI 200 while selling weekly call options to collect option premiums. The underlying index adjusts the proportion of options sold with the aim of generating option premiums equivalent to around 15% annually.
The KODEX 200 Covered Call Active applies an active strategy not only to options but also to its stock portfolio. It adjusts the weightings of market-leading sectors and companies with strong shareholder-return policies, among others, and seeks to outperform its benchmark.
The distribution schedules also differ. The KODEX 200 Target Weekly Covered Call pays distributions based on the 15th of each month, while the KODEX 200 Covered Call Active pays them based on the last day of each month.
Samsung Asset Management’s covered call ETFs have total net assets of about 12 trillion won, giving the firm a market share of about 45%.
Choi Yong-geun, a manager at Samsung Asset Management, said, "Using the two ETFs, investors can design a cash flow that provides distributions twice a month while also allowing them to participate in gains in domestic indices."
[email protected] Bae Han-geul Reporter