HK Covered Call ETF Yield Calculator
- Five HKEX covered-call ETFs cover HSI, HSCEI, Hang Seng Tech, and MSCI China. Distribution yields run 9-12% trailing-twelve-month (2026-Q1).
- 3416 Global X Hang Seng Tech has the highest trailing yield (~11.5%) and the highest NAV volatility. Good if you want income and can tolerate tech drawdowns.
- 3415 Mirae HSI (0.68% TER) and 3451 Samsung HSI (0.75% TER) are the lowest-cost HSI-based options.
- All five underperform buy-and-hold by 2-4% annualised in strong bull markets. In sideways or mild rallies, they outperform because premium collection covers chop.
- No HK tax on distributions or capital gains for individuals. US withholding may apply inside the fund for products touching US-listed ADRs (mainly 3419 MSCI China).
- Use the calculator to model distribution income vs buy-and-hold total return over 1-10 years. Adjust NAV drift to stress-test bull/bear scenarios.
Scenario details
| Year | Cash distribution | NAV position value | Cumulative cash |
|---|---|---|---|
| 1 | $43,100 | $517,500 | $43,100 |
| 2 | $44,609 | $535,612 | $87,709 |
| 3 | $46,170 | $554,359 | $133,878 |
| 4 | $47,786 | $573,762 | $181,664 |
| 5 | $49,458 | $593,843 | $231,122 |
2026-Q1 HK Covered Call ETF Cheat Sheet
| Ticker | Name | Underlying | TTM Yield | TER | Freq |
|---|---|---|---|---|---|
| 3415 | Mirae HSI Covered Call | HSI | 9.3% | 0.68% | Monthly |
| 3416 | Global X HS Tech Covered Call | Hang Seng Tech | 11.5% | 0.85% | Monthly |
| 3417 | Global X HSCEI Covered Call | HSCEI | 9.8% | 0.85% | Monthly |
| 3419 | Global X MSCI China Covered Call | MSCI China | 10.2% | 0.88% | Monthly |
| 3451 | Samsung HSI Covered Call | HSI | 9.6% | 0.75% | Monthly |
TTM yield = trailing-twelve-month distribution divided by average NAV. Figures cover 2025-04 to 2026-03. TER = total expense ratio including management fee and ongoing charges. Always verify on the issuer fact sheet before investing.
How the Calculation Works
- Start with HKD principal, the ETF you picked, and the distribution yield you expect (default = the 2026 TTM figure for that ETF).
- Subtract TER (expense ratio) to get net yield on principal. 3415 at 9.3% TTM minus 0.68% TER = 8.62% net.
- Distributions: annual_cash = principal * net_yield. Displayed as monthly for realistic budgeting (most HK covered-call ETFs pay monthly).
- If you check reinvest, distributions buy back ETF units each month (approximation: at same NAV). Without reinvest, cash stays in HKD.
- NAV drift slider models price change on the ETF itself (not the underlying index). Covered-call ETFs typically lag index 2-4% per year in strong bulls, match index in sideways markets.
- Total return = terminal NAV value + sum of distributions (or reinvested compounding). Compare to buy-and-hold HSI assumption (4% dividend + 2-6% appreciation per year).
FAQ
What is the realistic distribution yield for HK covered call ETFs?
Issuer targets run 8-12% annualised. Trailing-twelve-month actuals as of 2026-Q1: 3416 Tech ~11.5%, 3417 HSCEI ~9.8%, 3419 MSCI China ~10.2%, 3415 Mirae HSI ~9.3%, 3451 Samsung HSI ~9.6%. These distributions are real cash but they come partly from premium collection, so NAV tends to lag the index in strong rallies.
Why do covered call ETFs underperform in bull markets?
The strategy writes (sells) call options on the underlying. If HSI rallies 20% in 6 months, the calls get exercised at the strike and the fund gives up most of the upside. Over a 5-year cycle, HK covered-call ETFs typically trail buy-and-hold HSI total return by 2-4% annualised.
Which HK covered call ETF has the lowest TER?
3415 Mirae HSI Covered Call at 0.68%. 3451 Samsung HSI Covered Call at 0.75%. 3416, 3417 at 0.85%. 3419 at 0.88%. Lower TER does not automatically mean better net yield — distribution management quality matters more over full cycles.
Are distributions taxed in Hong Kong?
Hong Kong residents pay no local tax on ETF distributions or capital gains for securities held as investments. Inside the fund, 3419 MSCI China may see 30% US withholding on US-listed ADR exposure before distributions reach you — you receive the net amount. This is not tax advice.
Stack HSI and Tech or pick one?
HSI to Hang Seng Tech correlation averaged 0.78 in 2023-2025 — high enough that stacking gives limited diversification. A reasonable split: 3415 or 3451 as HSI core (lower vol, lower yield), 3416 as Tech satellite (higher vol, higher yield). Add 3419 if you want MSCI China A-share exposure the HSI ETFs miss.
US equivalents (JEPI, QYLD)?
Yes — JEPI, JEPQ, QYLD, XYLD, DIVO, SPYI are US counterparts on S&P 500 / Nasdaq 100 with 7-12% yields. Accessible via Futu/IBKR/Tiger for HK residents but 30% US withholding applies at source. HK-listed avoid US withholding and settle in HKD — matters more than you think if you spend in HKD.
Related TradeSmart resources
This calculator estimates income and return based on historical distribution figures. Actual yields vary with call strike management, index volatility, and fund size. Distributions are not guaranteed. Not financial or tax advice.