Shinhan Asset Management announced on the 2nd that it will pay the first monthly dividends for the 'SOL Palantir Covered Call OTM Bond Mixed' exchange-traded fund (ETF) and 'SOL Palantir U.S. Treasury Covered Call Mixed' ETF, launched in April.
The distribution amount per share is 230 won for the SOL Palantir Covered Call OTM Bond Mixed ETF and 150 won for the SOL Palantir U.S. Treasury Covered Call Mixed ETF, with annualized distribution rates (as of May 28) of 26.28% and 17.16%, respectively.
The two ETFs invest in the U.S. artificial intelligence (AI) software company Palantir, which is gaining attention in the defense industry, while pursuing stable monthly dividends through a covered call strategy.
Kim Gi-duk, head of quant & ETF management at Shinhan Asset Management, noted, "The option premium yield when selling 103% OTM weekly call options on Palantir stock while holding 100% physical stocks is higher than that of Tesla and NVIDIA."
He added, "If Palantir's stock price experiences a short-term surge, revenue may be relatively limited, but the structure allows for high dividends along with capital gains."