Hanwha Asset Management has introduced a new bond-mixed covered call exchange-traded fund focused on Tesla. The ETF aims to benefit from the electric vehicle maker's stock volatility. It will begin trading on December 9 on the Korea Exchange.
Hanwha Asset Management announced the listing of a new bond-mixed covered call ETF centered on Tesla, the electric vehicle company led by Elon Musk. This product seeks to capitalize on Tesla's stock volatility by combining equity exposure with income generation through covered calls.
The ETF, which replicates the Akros Tesla Weekly Covered Call Balanced Index, allocates 30% of its portfolio to Tesla shares and 70% to three-year US Treasury bonds. This balanced approach provides investors with potential upside from Tesla's performance while mitigating some risk via fixed-income assets.
Scheduled to go live on Tuesday, December 9, the ETF will trade on the Korea Exchange. According to Gyan Jun of Samsung Securities, "Korean individual investors invest in a covered call ETF as a dividend product." This reflects a growing interest among Korean retail investors in such strategies for yield in volatile markets.
The launch comes amid ongoing fluctuations in Tesla's stock, driven by the company's position in the electric vehicle sector. By offering this ETF, Hanwha provides Korean investors targeted access to Tesla without full equity risk.
