Korean Covered Call ETFs Surpass 25 Trillion Won in July Amid Record Market Volatility

According to Asia Economic Daily, Korean covered call exchange-traded funds surpassed 25 trillion won in net assets in July as market volatility reached historic levels on July 28. The number of covered call ETF products expanded to around 50, up from just six years ago, as investors sought stable dividend income alongside hedging benefits.

A major covered call product (KODEX 200 Target Weekly Covered Call) recorded dividend yields exceeding 10% over the past year and total returns in the 70% range since the start of 2026, driven by elevated option premiums amid heightened market swings. The KOSPI 200 call option premium recently reached 2.6% of the underlying index value, reflecting the elevated volatility environment that makes options more expensive to sell.