High-Dividend Covered Call ETFs: Emerging Investment Strategy in Volatile Markets
Recently, high-dividend covered call ETFs listed on the Korean exchange are gaining attention among investors. Notably, 'RISE US AI Value Chain Daily Fixed Covered Call' and 'RISE US Tech 100 Daily Fixed Covered Call' ETFs are recording high distribution rates of 18-20%. These ETFs employ a strategy of short option maturities to increase premiums and use covered calls on a portion of the underlying assets to participate in market gains. However, excessively high distribution rates may also entail risks of principal loss, necessitating careful investment consideration.
As market volatility expands, interest in high-dividend ETFs is increasing, making them suitable for investors seeking stable returns. Products like 'RISE 200 Weekly Covered Call' are highlighted with an annual dividend rate of 17.3%, benefiting from diversification in monthly dividend products and favorable changes in overseas fund taxation. Additionally, products like PLUS high-dividend stocks are known for their high dividend yields, permitting stable returns even amid stock price declines. Furthermore, major domestic dividend stocks offer additional appeal by benefiting retirement accounts.
Related ETF
Related News
Earn 20 Million KRW Annually on an Investment of 100 Million KRW… Financial Tech Enthusiasts ExcitedEarn 20 Million KRW Annually on Investment of 100 Million KRW… Financial Tech Enthusiasts Excited, High-Dividend Covered Call ETFs Released, Products like RISE US Tech and KODEX Nasdaq with Annual Yields of 20% Emerging. Industry Warns of Potential Principal Loss
Volatile Stock Market...High Dividend ETFs as 'Investment Safe Haven' - Maeil Business NewspaperInvestors Interested in Monthly Dividend ETFs; Tax Change on Overseas Funds Also a Positive; Low Volatility Dividend Stocks Investment Opportunity; Covered Call ETF Distribution Rate 17%; Suitable for Stable Income Investors
Related ETF
Unstable Market ··· Consider Escaping to High-Dividend ETFs - Maeil EconomyAs market volatility expands, there is a visibly growing interest in high-dividend ETFs. This is because dividend yields support the downside of stock prices, acting as a brake on stock price declines. In contrast to major dividend companies concentrating dividends during specific periods like the 'cherry blossom dividend' in March-April, ETF products have been praised for diversifying investor choices by increasing the proportion of monthly dividend products.
Related ETF