"Receive Dividends Monthly"... Mirae Asset Management Launches Monthly Distribution for 4 TIGER ETFs

[Asia Economy Reporter Hwang Yoon-joo] Mirae Asset Global Investments announced on the 3rd that it has changed the dividend payment cycle of four TIGER ETFs to monthly distribution. With this change, TIGER ETFs have become the ETFs with the most monthly dividend-paying items listed on the Korea Exchange. The combined net assets of the four ETFs amounted to 290.8 billion KRW as of the end of July, making them outstanding in terms of scale.

As of July 29, Mirae Asset Global Investments changed the dividend payment record dates for four ETFs: ‘TIGER US Dow Jones 30 ETF,’ ‘TIGER US MSCI REITs (Synthetic H) ETF,’ ‘TIGER 200 Covered Call 5% OTM ETF,’ and ‘TIGER 200 Covered Call ATM ETF.’

Previously, dividends were paid based on the last business day of January, April, July, and October, as well as the ETF accounting period end date. After the change, dividends will be paid based on the last business day of every month.

Monthly dividend ETFs generate continuous income every month, making them suitable for retirees. They can also be used as reinvestment resources for various products such as innovative growth theme ETFs. Since dividend income tax is imposed on monthly dividends, investing through pension accounts with tax benefits can maximize advantages.

The TIGER US Dow Jones 30 ETF tracks a representative US index. The benchmark index, the 'Dow Jones Industrial Average Index,' consists of 30 major industrial blue-chip stocks listed on the US stock market, excluding transportation and utility industries.

This index has a low proportion of technology stocks and a well-diversified sector allocation, resulting in lower volatility and higher dividend yield compared to the S&P 500 index. 90% of the index components pay dividends quarterly.

The TIGER US MSCI REITs (Synthetic H) ETF invests in US-listed REITs. The benchmark index, the ‘MSCI US REIT Index,’ covers two-thirds of the US REIT market. Among the 135 components, 14% pay dividends monthly, and 84% pay dividends quarterly, enabling stable monthly distributions.

The TIGER 200 Covered Call 5% OTM ETF and TIGER 200 Covered Call ATM ETF are ‘KOSPI 200’ covered call products. The KOSPI 200 covered call strategy involves holding the KOSPI 200 index components while selling KOSPI 200 call options, which can generate excess returns compared to the market in sideways or declining markets. These ETFs generate monthly premiums from call option sales in addition to stock dividends, making them the most optimized products for monthly distributions.

Mirae Asset possesses extensive know-how in managing various income-type products. The monthly distribution product ‘Global X Nasdaq 100 Covered Call ETF (QYLD)’ is the largest among the ETFs managed by Mirae Asset’s US ETF subsidiary ‘Global X,’ with net assets reaching 7.12375 billion USD (approximately 9.2965 trillion KRW) as of the end of July. QYLD, which has a dividend yield of about 15% over the past 12 months, is the most widely held monthly dividend US ETF by domestic investors.

This content was produced with the assistance of AI translation services.