KB Asset Management announced Wednesday the listing of the RISE US S&P 500 Daily Fixed Covered Call ETF, which invests in the S&P 500 index while pursuing stable income returns.
The RISE US S&P 500 Daily Fixed Covered Call ETF uses the S&P 500 index as its underlying asset and employs a daily call option selling strategy. The product aims to capture approximately 90% of S&P 500 index gains while simultaneously pursuing both growth from index appreciation and monthly distribution-based income returns.
The product features a "third-generation covered call" strategy that strengthens the balance between growth potential and income returns compared to conventional covered call products. The "daily fixed covered call" strategy, which sells call options at 10% of the underlying index weight each day, reduces the upside participation limitations found in traditional covered call ETFs. This allows investors to secure income returns through option premiums during periods of heightened volatility.
The RISE US S&P 500 Daily Fixed Covered Call is the fourth product in the RISE Daily Fixed Covered Call series. The previously launched products—RISE US Dividend 100 Daily Fixed Covered Call, RISE US Tech 100 Daily Fixed Covered Call, and RISE US AI Value Chain Daily Fixed Covered Call—have attracted approximately 700 billion won in inflows this year.
"With the listing of the RISE US S&P 500 Daily Fixed Covered Call, we have completed a daily fixed covered call lineup spanning growth stocks, dividend stocks, tech, artificial intelligence, and now the flagship US index," said Yuk Dong-hwi, Head of ETF Product Marketing at KB Asset Management. "This product is suitable for investors who want to invest in a flagship US index while also considering monthly distribution income returns."
