Hanwha Asset Management Tesla Weekly Covered Call Bond Hybrid ETF Pays 180 Won Distribution

Hanwha Asset Management Tesla Weekly Covered Call Bond Hybrid ETF Pays 180 Won Distribution

Hanwha Asset Management announced on the 17th that its 'PLUS Tesla Weekly Covered Call Bond Hybrid' ETF (Exchange Traded Fund) will pay 180 won per share in April distributions.

The distribution rate is 1.99% monthly, or an annualized 23.89%. The total net asset value recorded 121.9 billion won as of the 15th.

This ETF has received steady interest from individual investors since its listing on December 9th last year. Net purchases by individuals occurred on 74 out of 85 trading days since the ETF began trading.

This ETF uses the premium from the fixed sale of 50% Tesla weekly call options as its primary distribution source, and investors can expect distributions of around 24% annually.

Unlike stock dividends, call option selling premiums are not subject to US tax withholding, so investing in tax-advantaged accounts can offer a tax deferral effect on distributions.

Geum Jeong-seop, Head of Hanwha Asset Management's ETF Business Division, stated, "This ETF is a product that can pay predictable distributions of 2% monthly, or around 24% annually, through high option premiums obtained by utilizing Tesla's unique volatility," adding, "It allows participation in a certain proportion of Tesla stock price increases while enabling monthly distribution receipts during periods of stock price decline, leading to high investment demand."