Shinhan Asset Management noted on the 2nd that it will distribute the first monthly dividends of the 'SOL Gold Covered Call Active ETF.'
According to Shinhan Asset Management, investors holding this ETF will receive 40 won per share on the 2nd until April 28. The annualized distribution rate is about 4.32%.
The SOL Gold Covered Call Active ETF tracks international gold prices by over 90% and utilizes covered call strategies to distribute options premiums as resources for payout. Investors can receive monthly dividends of around 4% while investing in gold, which does not yield interest or dividends.
Kim Ki-deok, head of Quant & ETF operations at Shinhan Asset Management, said, "This product compensates for the shortcomings of gold, which does not provide interest or dividends, making it suitable for pension investors seeking stable dividend revenue," and noted, "Since it tracks international gold prices, it is free from pricing gap risks such as the so-called 'Kimchi premium.'"
The yield is also satisfactory. Since its listing in March this year, the yield has reached 13.32%, surpassing market yields such as the KOSPI and the S&P 500 over the same period. Shinhan Asset Management explained that it reported a higher yield than the KRX gold spot price, which rose by 10.56%.
Meanwhile, the SOL Gold Covered Call Active ETF can be invested in through tax-exempt accounts, including Individual Savings Accounts (ISAs) and pension savings. It is characterized by the fact that the options premium, the main source of the distribution, is not subject to U.S. withholding tax, thus maintaining the tax deferral effect within the tax-exempt accounts.