'Monthly Dividend ETFs Are the Trend'... Mirae Asset TIGER ETF at the Center

As economic uncertainty continues, monthly dividend ETFs, which provide stable dividend income every month, have emerged as a central focus in the ETF market just one year after their launch. Mirae Asset Global Investments is leading the monthly dividend ETF craze by offering the largest lineup of 14 monthly dividend ETFs among domestic asset managers.

According to the financial investment industry on the 20th, as of the end of August, there are a total of 31 monthly dividend ETFs listed domestically. Since the first domestic monthly dividend ETF was introduced on June 21 last year, both the number of products and their scale have surged rapidly. The total net asset size reaches approximately 2.7 trillion KRW.

Monthly dividend ETFs are products designed to allow investors to receive interest, dividends, and other distribution income generated from investments in stocks, bonds, and other assets on a monthly basis. The monthly distributions can be used as capital for investing in other products or serve as a second paycheck or pension, among various other uses. Compared to annual dividends, they also have the advantage of dispersing shocks in case of negative issues such as dividend cuts.

With demand surging for stable cash flow amid the volatile market conditions continuing since last year, asset managers are rushing into the monthly dividend ETF market. Domestically, Mirae Asset Global Investments is leading the monthly dividend ETF market. Mirae Asset offers a total of 14 monthly dividend ETFs, boasting the largest product lineup among domestic asset managers.

Mirae Asset’s representative monthly dividend ETFs include three U.S. dividend series. In June, considering the investment sentiment focused on dividends, Mirae Asset launched three products: ‘TIGER U.S. Dividend Dow Jones ETF,’ ‘TIGER U.S. Dividend +3% Premium Dow Jones,’ and ‘TIGER U.S. Dividend +7% Premium Dow Jones,’ which add premium returns to monthly dividends.

The ‘TIGER U.S. Dividend Dow Jones ETF’ invests in high-quality, high-dividend companies recognized for growth and financial soundness that have consistently paid dividends for over 10 years. The ETF’s underlying index is the ‘Dow Jones US Dividend 100 Index,’ which tracks the same index as the ‘Schwab US Dividend Equity ETF (SCHD)’ listed in the U.S.

The ‘TIGER U.S. Dividend +3% Premium Dow Jones ETF’ and ‘TIGER U.S. Dividend +7% Premium Dow Jones ETF’ track the U.S. Dividend Dow Jones index and use a covered call strategy to generate monthly income. Unlike typical covered call ETFs that sell 100% of call options, these ETFs adjust the selling ratio to pursue a strategy that follows stock price appreciation. The ‘TIGER U.S. Nasdaq 100 Covered Call (Synthetic) ETF’ is also a popular monthly dividend product. As the first domestic ETF based on the U.S. Nasdaq 100 index using a covered call strategy, it recently surpassed 100 billion KRW in net assets amid the Nasdaq market’s sideways movement.

The ‘TIGER U.S. Nasdaq 100 Covered Call (Synthetic) ETF,’ which pays monthly dividends, is noted for having the highest dividend yield among monthly dividend ETFs listed domestically. Since its listing in September last year, it has recorded a monthly dividend yield of about 1.00%, attracting strong interest from investors seeking dividends due to its appeal of providing steady cash flow every month in a volatile stock market.

In particular, the ‘TIGER U.S. Nasdaq 100 Covered Call (Synthetic) ETF’ is the Korean version of ‘QYLD,’ the flagship product of Mirae Asset Global Investments’ U.S. subsidiary Global X, offering Korean investors the advantage of more convenient access to the U.S. market domestically. ‘QYLD’ is a leading U.S. ETF that recently surpassed 10 trillion KRW in net assets. Unlike investing in ‘QYLD,’ investing in ‘TIGER U.S. Nasdaq 100 Covered Call ETF (Synthetic)’ requires no currency exchange and can be done through pension accounts. Especially when investing through pension accounts, dividend income tax on monthly dividends is deferred until withdrawal, making it more advantageous for long-term investment.

Additionally, as the REITs market, which experienced a decline last year due to rapid interest rate hikes, is expected to recover this year, buying momentum for the ‘TIGER REITs Real Estate Infrastructure ETF’ is also strengthening. This ETF pays monthly distributions based on rental income generated from various REIT assets such as offices, hotels, and logistics warehouses. It invests not only in high-quality REITs with a market capitalization of over 200 billion KRW but also in infrastructure investment companies like Macquarie Infrastructure, enhancing stability.

In response to investors’ strong interest in monthly dividend ETFs, Mirae Asset Global Investments recently released the ‘TIGER Monthly Dividend ETF Guidebook.’ The guidebook contains a variety of information, from an introduction to monthly dividend ETFs to investment precautions and how to find the monthly dividend ETF that suits individual investors.

Oh Dong-jun, team leader of the ETF management division at Mirae Asset Global Investments, said, “For monthly dividend ETFs, it is more important to pay dividends stably and sustainably rather than simply having a high distribution rate. Since the source and volatility of distributions vary depending on the invested assets, understanding the TIGER monthly dividend ETFs through the guidebook and selecting the product that fits oneself will be helpful.”

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