Samsung Asset Management KODEX covered call ETFs see 4 trillion won in retail inflows

Retail investors have poured over 4 trillion won into two KODEX covered call ETFs managed by Samsung Asset Management since the beginning of the year. The inflows are split between the ‘KODEX 200 Target Weekly Covered Call’, which saw 3.0092 trillion won in net purchases, and the ‘KODEX 200 Covered Call Active’, which attracted 1.1305 trillion won.

While both funds track the KOSPI 200 index, they utilize different management strategies. The Target Weekly version sells weekly call options with a goal of generating a 15% annual option premium, distributing dividends on the 15th of each month. The Active version manages both options and a stock portfolio to seek excess returns, distributing dividends at the end of each month. By holding both, investors can establish a cash flow that provides distributions twice a month.

Samsung Asset Management currently holds approximately 45% of the covered call market with total net assets of about 12 trillion won. Additionally, the company reported that its ‘KODEX US Nasdaq 100’ ETF has surpassed 10 trillion won in net assets, while its ‘KODEX All-Solid-State Battery ESS TOP2 Plus’ reached 200 billion won in assets within four months of its launch.