“Special-dividend effect from Samsung Electronics and SK Hynix” ... Distributions rise for KODEX 200 Target Weekly Covered Call

[Financial News] Samsung Asset Management’s KODEX 200 Target Weekly Covered Call exchange-traded fund (ETF) will increase its distributions to reflect special dividends from Samsung Electronics and SK Hynix.
Samsung Asset Management said on the 11th that it would increase distributions for the KODEX 200 Target Weekly Covered Call ETF in November and December.
The increased distributions will be funded by the special dividend from Samsung Electronics that the ETF actually received. The special-dividend proceeds from Samsung Electronics are to be split evenly and paid out in two installments, in November and December.
As of the previous day, a distribution of 266 won per share was scheduled to be paid, and the distribution yield had risen from 1.47% the previous month to 1.75%. The record date for this month’s distribution is the 13th, and the ex-distribution date is the 12th. The distribution will actually be paid on the 17th.
SK Hynix’s special dividend is also expected to be reflected in the December distribution. Samsung Asset Management plans to pass on to investors within the year the special dividend on the ETF’s SK Hynix holdings, which become entitled to the dividend at the end of November.
KODEX 200 Target Weekly Covered Call is a mid-month distribution ETF that invests in assets linked to the KOSPI 200 and aims to secure annual option premiums of around 15% by selling call options.
Lim Tae-hyuk, head of the ETF Management Division at Samsung Asset Management, said, “The special dividends from Samsung Electronics and SK Hynix, arriving in November and December in addition to the stable monthly payouts based on existing option premiums, will make year-end distributions even more attractive. Even among investment products linked to the same KOSPI 200, whether they qualify for special dividends and when those dividends are actually distributed can vary by product, so investors should check carefully.”

[email protected] Seo Min-ji Reporter