KIWOOM Launches KOSDAQ150 Covered Call ETF on June 30, Combines 70% Equity with 30% Call Sales

According to Korea Exchange, KIWOOM Asset Management launched the KOSDAQ150 Covered Call Active ETF on June 30, blending a 70% equity portfolio of KOSDAQ150 constituent stocks with 30% call option sales to generate monthly distributions. The strategy seeks to capture upside during rallies while building income from option premiums in volatile markets, with an annual fee of 0.63%.

Investors should note that covered call strategies limit gains during sharp rallies, as sold call positions cap upside participation. In downturns, option premiums provide only partial buffering; the structure does not fully hedge underlying price declines.