Hello, I'm Shin Jang, a YouTuber bringing you news related to ETFs. Today's topic is about the revived China and the sluggish Japan. The second news is that Rise Co. is launching a new version of a covered call ETF. Let's get started with the video.

In the past six trading days, China's Shanghai Composite Index surged vertically from 2,700 points to 3,300 points, while Japan's Nikkei Index peaked and then sharply declined. Looking at just the past week, the two indices are showing completely different movements. To understand why the stock markets are moving in opposite directions recently, we can see that the Chinese government has taken decisive action. They have shown a willingness to boldly stimulate the Chinese stock market, which has struggled to recover since the COVID-19 pandemic, leading to a rapid increase in the index. On the other hand, Japan's stock market is affected by the confirmation of a new ruling party leader, who has made hawkish statements regarding the possibility of interest rate hikes and concerns about a stronger yen.

It has plunged. Looking at the Shanghai Composite Index, we can see that it has almost reached its previous peak. At the beginning of this year, there were concerns that the Chinese stock market was coming to an end, but indeed, no one can predict the future of the stock market. Furthermore, even though the Japanese stock market dropped sharply last week, it is still near its peak. It had a significant rise over the past year. However, is our country's KOSPI still struggling at the bottom? But we don't know. If China can do this, there is a possibility that our country can also surge. There are various factors that could lead to a rise in our market as well. Today, since we are discussing the Chinese and Japanese stock markets, what ETFs are worth investing in? I would recommend ETFs with high market capitalization and trading volume, rather than major ETFs from the U.S. So, what I have found is...

Tiger's social product is the China Hang Seng Tech and Japan's Nikkei 225. If you look at the composition of each ETF, you'll see that the China Hang Seng Tech is an ETF that focuses on investing in 30 Chinese tech companies, while the Nikkei 225 invests in 225 companies across various industries in Japan. Here is the chart for the last six months: China has seen a 32% increase, which is quite remarkable. In numerical terms, it overwhelmingly surpasses the U.S. indices. The market truly is unpredictable. On the other hand, Japan, which was the country with the highest returns at the beginning of the year, has now recorded a negative return. However, just looking at the beginning of the year, the blue line represents Japan's chart, and the red line represents China's chart. Clearly, in the first half of the year, Japan was performing well while China was struggling. Were there any investors who actually put their money into China at the bottom? As we have seen, we are not investing in the past; we are investing in the future. Which country will thrive going forward?

Since no one knows how things will go, I recommend that those who want to invest diversify their investments across several countries. Since a significant portion will likely be concentrated in the United States, I suggest diversifying the remaining portion into emerging markets such as India, Vietnam, Mexico, or Asia's largest markets like China and Japan. 

The second piece of news is that Rise is launching a new covered call ETF. As of the recording date on October 2nd, it is scheduled to launch tomorrow. The Rise U.S. AI Value Chain Daily Fixed Covered Call product and the Rise U.S. Tech 100 Daily Fixed Covered Call product are set to be listed. Before looking at the product descriptions, let’s break it down by name. The investment targets will be ETFs that invest in U.S. companies related to the AI value chain and the top 100 companies in the tech sector, and the daily fixed covered call indicates that the options will be sold daily.

The plan is to set the period to daily, and this fixed covered call is a covered call ETF that will consistently provide distributions. Let's look into this further. First, the information provided by Rise shows a chart comparing the differences between selling options daily, weekly, and monthly. At a glance, it is clear that the daily chart is at the top. What we can infer from this chart is that when the option selling cycle is set to daily, both the index performance and the premium, meaning the distributions, are favorable. This information is from the new version of the covered call ETF released by Rise, illustrating its approach. The existing covered call products are commonly referred to as first-generation covered calls. This product captures 100% of the option selling ratio, making it difficult to participate in the price appreciation of the underlying asset, but it allows for the collection of high premiums. Next, we will look at the target premium covered call.

The so-called second-generation covered call product does not sell options 100%, but rather sells a portion flexibly, allowing for some participation in the price increase of the underlying asset while receiving distributions based on the remaining sold portion. However, the fixed covered call product launched by Rise Company fixes the option selling ratio at 10%, allowing for 90% participation in the price increase of the underlying asset. This is said to make it suitable for long-term investment. However, I have some doubts here; when I previously analyzed the performance of target premium covered call products, they tended to track indices quite a bit. I wonder how much the difference between these two products will be. I will have to analyze the performance of this Rise 4 product later as well. The difference between the fixed covered call ETF being launched by Rise and the previously released target covered call ETFs is that the target covered call products presented...

This is a flexible product that adjusts the proportion of option selling to target the distribution rate. In contrast, this fixed covered call product aims to maintain a fixed proportion of option selling while maximizing participation in the underlying asset's upward movement. However, conversely, this means that the distribution rate may vary. With the launch of this product, there will be three fixed covered call ETFs listed by Rise: the U.S. Dividend 100 Daily Fixed, the U.S. AI Value Chain Daily Fixed, and the U.S. Tech 100 Daily Fixed. 

Looking at how these products will be operated, the U.S. Dividend Growth 100 will sell 10% of daily call options on the S&P 500 ETF, focusing on 100 dividend growth stocks. The U.S. AI Value Chain will sell 10% of daily call options on the Nasdaq 100, focusing on 15 core stocks in the AI value chain. The U.S. Tech Growth 100 will sell 10% of daily call options on the Nasdaq Pack, focusing on 100 tech growth stocks. Each product has its unique characteristics. The U.S. Dividend product is...

It seems that this product is designed to reduce the volatility of assets, while AI value chain products aim for high growth but carry the risk of a collapse in the AI industry. The top 10 tech products in the U.S. are simply a collection of tech companies listed on the Nasdaq, diversified across 100 companies, and can be seen as products that offer reasonable growth and appropriate volatility. If it were up to me, I would invest in this U.S. tech product. 

This raises a question: why not just invest in the underlying index for a 100% increase? Why bother with a covered call ETF that only aims for a 90% increase? This type of product is suitable for individuals who are nearing retirement and have a certain amount of capital. It allows them to follow stock price movements while also generating cash flow. 

So, today’s conclusion is that recently...

China has shown a strong willingness to boost its economy, resulting in a rise in the stock market, while Japan's market declined due to concerns over interest rate hikes and a strong yen. However, as the situation develops, no one knows which country will prevail in the future. Therefore, if you feel uneasy about investing only in the U.S., I recommend diversifying your investments across multiple countries. If you believe that the U.S. is the best option, you can choose to invest solely there. The important thing is to continue investing steadily without withdrawing your funds, so you don't miss out on a surge in the Chinese stock market.

Next, a new version of the covered call product is set to be listed by Rise Inc. This new management approach is slightly different from the existing one, and I will analyze its performance in the future. Today, we discussed the trends in global stock markets and the upcoming ETF listing. If you found this video interesting and informative, please check out my other helpful videos as well.

RISE 새로운 커버드콜 ETF상장, 부활한 중국, 주춤한 일본

RISE 새로운 커버드콜 ETF상장, 부활한 중국, 주춤한 일본

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