KEDI US Treasury 30Y Covered Call 17.14 Index

The index is designed to replicate the performance of a weekly covered call strategy on the price of U.S. Treasury Bond with maturities of 20 years or more, offering investors a structured approach to capturing income while maintaining exposure to the bond price movements. This strategy involves taking long positions in exchange-traded funds (ETFs) that provide direct exposure to U.S. treasury bonds, ensuring alignment with the underlying bond price movement. Simultaneously, the index takes short positions on ATM call options of the iShares 20 Plus Year Treasury Bond ETF (TLT), a widely recognized treasury bond ETF, to generate a target annual premium income of approximately 17.14%. By blending these positions, the index aims to balance the benefits of long-term U.S. treasury bond exposure with the income potential of option premiums.