Mirae Asset's Two TIGER Covered Call ETFs Each Surpass 200 Billion KRW in Net Assets

'TIGER Miguk Nasdaq 100 Covered Call (Hapseong)'
'TIGER Miguk Dividend +7% Premium Dow Jones'
Monthly Dividend Type ETF October Distribution Rates Rank 1 and 2 Respectively

Mirae Asset Global Investments announced on the 16th that two representative TIGER covered call ETFs?‘TIGER US Nasdaq 100 Covered Call (Synthetic)’ and ‘TIGER US Dividend +7% Premium Dow Jones’?have each surpassed 200 billion KRW in net assets. A covered call is a strategy that involves holding a stock portfolio and selling call options (early redemption rights). When the underlying asset declines, losses are cushioned by the option premium received, while gains are capped at a certain level when the underlying asset rises.

According to the Korea Exchange, as of the previous day's closing price, the net assets of the ‘TIGER US Nasdaq 100 Covered Call (Synthetic) ETF’ stand at 204 billion KRW. This product is the Korean version of Global X Nasdaq 100 Covered Call (QYLD), a flagship product of Global X, Mirae Asset’s US subsidiary, which has net assets totaling around 10 trillion KRW. It invests in the Nasdaq 100 index, which has a high proportion of technology stocks. Last month, it was the first covered call ETF listed domestically to exceed 100 billion KRW in net purchases by individual investors.

Among the three US dividend TIGER ETF series by Mirae Asset Global Investments, the ‘TIGER US Dividend +7% Premium Dow Jones ETF’ also recorded net assets of 210.7 billion KRW as of the same day’s closing price. It tracks the US Dividend Dow Jones index and, unlike typical covered call ETFs that sell 100% of call options, it adjusts the selling ratio to pursue a strategy that follows stock price increases. Investors can expect a dividend yield that adds 7% to the average annual dividend yield of the US Dividend Dow Jones index.

Both monthly dividend products are also noted for their high distribution rates. According to the Korea Securities Depository, the ‘TIGER US Nasdaq 100 Covered Call (Synthetic) ETF’ ranked first among all monthly dividend ETFs in Korea last month with a distribution rate of 0.99%. The ‘TIGER US Dividend +7% Premium Dow Jones ETF’ ranked second with 0.85%. Securing stable dividend resources makes these ETFs attractive not only to pension investors but also to those considering a second income or retirement living expenses.

On the same day, Kim Su-myeong, Senior Manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, “Using a covered call strategy can stabilize the volatility of an investment portfolio and generate a steady monthly cash flow. TIGER ETFs offer a variety of covered call ETFs to help investors build portfolios that suit their investment goals, duration, and risk preferences.”

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