Covered-call ETFs surge amid volatility, RISE 200 13.75% surge
Amid increased volatility in South Korea’s stock market over the past week, ETFs combining covered calls and high dividends ranked among the top performers. RISE 200 High Dividend Covered Call ATM rose 13.75%, while several financial and high-dividend ETFs posted returns approaching double digits. A shift in investor interest toward defensive products has been observed.
As volatility in South Korea’s stock market increased over the past week, investor funds have been flowing into covered-call exchange-traded funds (ETFs). Demand has grown for defensive alternatives as the KOSPI repeatedly experienced swings of nearly 10% over a short period.
The top performer was 1RISE 200 High Dividend Covered Call ATM, which rose 13.75% over the same period. The product applies a covered-call strategy while including high-dividend stocks in the KOSPI200.
Among others, SOL Financial Holding Plus High Dividend 7.01% rose. KODEX Shareholder Return High Dividend 6.34% increased.
TIGER Bank High Dividend Plus TOP10 recorded 6.30in returns. Some high-dividend and covered-call combination products ranked among the top performers.
The securities industry reported that the appeal of covered-call strategies has come into focus due to increased volatility over a short period. These ETFs combine dividend income and option premiums in their portfolios.
Investors are making investment decisions after reviewing each ETF’s holdings, dividend policy, and option expiration structure.
Sources: 파이낸셜뉴스 증권
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