Monthly Dividend ETF Portfolio — Strategy for Building Monthly Cash Flow

Key Summary In 2026, a monthly dividend portfolio can be built around JEPI (7–9% annual dividend) and SCHD (3.5–4.0% plus dividend growth). With KRW 100M invested, the expected monthly cash flow is roughly KRW 470,000–560,000 after Korean withholding tax. ## Core Monthly Dividend ETF Comparison ### Key Metrics (June 2026) | ETF | Issuer | Dividend Frequency | Yield | Strategy | Expense Ratio |

A covered call strategy: → Sells call options on held stocks to collect option premiums → Trades upside price appreciation for consistent income → Outperforms plain ETFs in flat or declining markets → Lags in strong bull markets as NAV growth is capped JEPI: S&P500 stocks + ELN (equity-linked notes) for covered-call effect JEPQ: Nasdaq100 + covered calls — high yield in volatile markets QYLD: 100% covered calls on Nasdaq100 → highest yield, lowest NAV growth

|-----|-----------|------|
| JEPI | 40% | Monthly cash flow |
| SCHD | 40% | Dividend growth + capital appreciation |
| JEPQ | 20% | Yield booster | ```
KRW 100M invested — estimated annual dividend income:
JEPI KRW 40M × 8% = KRW 3,200,000
SCHD KRW 40M × 3.7% = KRW 1,480,000
JEPQ KRW 20M × 10% = KRW 2,000,000
Total: KRW 6,680,000 ÷ 12 = KRW 556,667/month (pre-tax)
After 15.4% withholding: ≈ KRW 471,000/month

KRW 100M — estimated pre-tax monthly dividend: ~KRW 800,000 Warning: QYLD's NAV tends to erode over time — long-term principal loss is possible

Target: KRW 1,000,000/month (after tax)
Annual need (after tax): KRW 12,000,000
Gross equivalent (÷ 0.846 for 15.4% tax): KRW 14,185,000/year
Assumed dividend yield: 8% Required capital: KRW 14,185,000 ÷ 8% ≈ KRW 177,300,000

Advantages of Korean-listed ETFs: ① Invest in KRW — no forex conversion needed ② Simpler tax reporting vs. direct overseas investment ③ ISA and pension accounts offer significant tax savings Disadvantages: ① Slight premium/discount (NAV deviation) possible ② Still exposed to USD/KRW exchange rate fluctuations ③ Expense ratio may be marginally higher than the original ETF

|---------|-------------|--------------------------|
| Regular brokerage | 15.4% withholding | Unlimited |
| ISA (brokerage type) | 9.9% on first KRW 2M / 15.4% above | KRW 20M/year |
| Pension savings fund | 3.3–5.5% at withdrawal | KRW 6M/year |
| IRP | 3.3–5.5% at withdrawal | KRW 9M combined | ```
Optimal allocation:
① ISA account: JEPI + JEPQ (high yield → maximize tax savings)
② Pension savings / IRP: SCHD (dividend growth, long holding period)
③ Regular account: remaining investment