Changes to Covered Call ETF Names and New Product Launch
In accordance with the guidelines from the Financial Supervisory Service (FSS), the names of second-generation covered call exchange-traded funds (ETFs) will be changed from the 25th. Expressions such as '00%' and 'premium' will be removed, and the names will be standardized to 'Target Covered Call'. Industry insiders fear this could cause confusion among investors and make product differentiation more difficult.
KB Asset Management is launching a new ETF called 'RISE U.S. Dividend 100 Daily Fixed Covered Call'. This ETF aims for an annual dividend yield of approximately 17% by employing a strategy of selling call options on the SPDR S&P500 ETF Trust (SPY), which tracks the S&P 500 index. It is designed to reflect 90% of the underlying asset's price gains. With an annual management fee of 0.25%, this ETF has one of the lowest fees domestically and is classified as an exposed currency product. Lee Su-jin, head of ETF Product Planning at KB Asset Management, states that they expect a positive yield given the high dividend tendencies of U.S. companies.
Related News
'Dividend + Stock Price Increase' US Dividend Stock Covered Call Coming - Korea Economic Daily'Dividend + Stock Price Increase' US Dividend Stock Covered Call Coming, KEDI's 19th ETF RISE US Dividend 100 Daily Fixed Covered Call listed by KB Asset Management tomorrow. In the past 5 years of operation test, the dividend yield was 17% per year. Designed to follow 90% of the rise in underlying assets like Home Depot and Coca-Cola.
Covered Call ETF Product Names to Drop 'Target Distribution Rate · Premium' - Korea Economic DailyCovered Call ETF product names to drop target distribution rate and premium, by Jin-Gyu Maeng, Securities
Next Week, 'Covered Call 2.0' ETF Product Names Will Be Completely Changed... Confusion for Investors and Industry - Yonhap News(Seoul = Yonhap News) Reporter Song Eun-kyung = The product names of '2nd generation covered call' ETFs, which flexibly adjust the proportion of option sales, will be uniformly...