“Raked in 3 trillion won this year alone” ... ETF drawing in retail investors

[Financial News] Large sums from individual investors have poured into Samsung Asset Management’s KODEX 200 Target Weekly Covered Call exchange-traded fund (ETF).
According to the Korea Exchange (KRX) on the 10th, cumulative net purchases by individual investors in the KODEX 200 Target Weekly Covered Call ETF since the start of the year totaled 3.2047 trillion won. This is the largest amount among covered-call ETFs listed in Korea.
Net assets stood at 4.7757 trillion won as of the previous day, the largest among covered-call ETFs in Korea.
As volatility in the stock market has increased, investors’ money appears to have flowed into covered-call ETFs, which pay monthly distributions steadily. Individual investors recorded net inflows of 481.1 billion won in the past month alone.
Buying has also continued in KODEX 200 Covered Call Active, which was listed in July. Cumulative net purchases by individual investors reached 1.1972 trillion won in just over four months after its listing.
KODEX 200 Target Weekly Covered Call uses the KOSPI 200 index as its underlying asset and seeks annual option premium income of around 15% by selling call options weekly. It adds dividend income from KOSPI 200 constituent stocks and pays monthly distributions.
The distribution record date is the 15th of each month. The distribution in October was 281 won per share, for a distribution yield of 1.57%. Distributions paid over the past year totaled 3,235 won, with a yield of 22.25%. To receive this month’s distribution, investors must buy the ETF by the 11th.
Lee Dae-hwan, a manager at Samsung Asset Management, said, “Investors are showing strong interest in covered-call ETFs as an alternative in volatile markets,” adding, “A single product can combine participation in stock-price gains, tax-free option premiums and a monthly-distribution strategy.”

[email protected] Seo Min-ji Reporter