South Korea Sees Rise in Gold ETF Buying Amid Price Rebound

South Korean retail investors are once again buying gold exchange-traded funds (ETFs), following a rebound in international gold prices. According to Shinhan Asset Management, individual investors have been net buyers of the SOL Global Gold Covered Call Active ETF over the past month.

The SOL Global Gold Covered Call Active ETF is unique in that it participates in more than 90% of international gold price upside while also paying monthly distributions funded by premiums generated from selling call options. In contrast to typical covered call products, this ETF has a limited allocation to option selling, allowing it to capture a larger share of gold price appreciation.

Over the past year, the average distribution per share was 45 won (approximately $0.034), with an annual distribution yield of around 4.38%. In August, it paid 46 won (approximately $0.034) per share.