CSOP Lists KOSPI 200 Covered-Call ETF in Hong Kong Amid Rising Volatility

CSOP Asset Management has expanded its lineup of products tied to South Korean equities by listing a KOSPI 200 covered-call ETF on the Hong Kong exchange. The firm, a major ETF manager in Hong Kong, said it chose to list the product now due to increased volatility in Korean stocks. As volatility rises, selling call options generates larger premiums, making it easier to secure income through a covered-call strategy.

The CSOP KOSPI 200 Covered Call Active uses swaps, KOSPI 200 futures and KOSPI 200 ETFs to gain exposure to the KOSPI 200 index. It also sells call options linked to the KOSPI 200 to earn option premiums through this covered-call strategy.

CSOP listed its first single-stock leveraged ETFs based on Samsung Electronics Co. and SK Hynix Inc. last year, followed by a KOSPI 200 ETF in July. The firm believes that direct inflows from Hong Kong investors into South Korea could improve foreign investors' access to the Korean stock market.