Mirae Asset's 'TIGER US Nasdaq 100 Covered Call (Synthetic)' Individual Purchases Surpass 10 Billion KRW

Mirae Asset Global Investments announced on the 16th that the ‘TIGER US Nasdaq 100 Covered Call (Synthetic) ETF’ has surpassed 10 billion KRW in net purchases by individual investors since the beginning of the year.

According to the Korea Exchange, individual investors have net purchased 10.1 billion KRW of the ‘TIGER US Nasdaq 100 Covered Call (Synthetic) ETF’ from the start of the year through the 15th. Listed in September 2022, this ETF has continued to see net buying from individual investors amid the sideways movement of the US Nasdaq market. In particular, the buying trend among individual investors has strengthened this year, with over 10 billion KRW inflow in just over two months. Since its listing, the total net purchases by individuals amount to 21.4 billion KRW.

The ‘TIGER US Nasdaq 100 Covered Call (Synthetic) ETF’ is Korea’s first ETF that uses a covered call strategy based on the US Nasdaq 100 index, a representative US index. A covered call strategy involves buying the underlying asset while simultaneously selling call options on that asset. By employing this strategy, losses are cushioned by the option premium when the underlying asset declines, while gains are capped at a certain level when the underlying asset rises.

Another factor positively influencing the increase in individual net purchases is that it is a monthly dividend-paying ETF. The ‘TIGER US Nasdaq 100 Covered Call (Synthetic) ETF’ pays monthly dividends funded by premiums earned from selling call options on the Nasdaq 100 index. As of the end of February, the ETF’s monthly dividend yield stands at approximately 1.00%, the highest among 21 monthly dividend ETFs listed domestically. When invested through a retirement pension account, monthly dividend ETFs also offer a tax deferral benefit on dividends until withdrawal.

Kim Su-myeong, Senior Manager of the ETF Management Division at Mirae Asset Global Investments, said, “The TIGER US Nasdaq 100 Covered Call (Synthetic) ETF has recorded a high dividend yield by utilizing options in the US Nasdaq market, leading to increased net purchases by individual investors. Especially, because it pays a fixed amount of cash monthly, it is popular as a source of retirement funds or reinvestment capital.”

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