Mirae Asset's 'TIGER US Tech TOP10+10% Premium' Surpasses 100 Billion KRW in Net Assets

Mirae Asset Global Investments announced on the 5th that the net assets of the ‘TIGER US Tech TOP10+10% Premium Exchange-Traded Fund (ETF)’ have surpassed 100 billion KRW.

According to the Korea Exchange, as of the closing price on the 4th, the net assets of the ‘TIGER US Tech TOP10+10% Premium ETF’ stand at 118 billion KRW. This ETF, known as the ‘first domestic ETF of 2024,’ exceeded 100 billion KRW in net assets in less than two months since its listing on January 16. As of the 4th, it attracted the largest inflow of funds among 16 newly listed domestic equity ETFs this year.

The ‘TIGER US Tech TOP10+10% Premium ETF’ invests in the top 10 US big tech companies within the Nasdaq 100 index, such as Nvidia and Apple, which are expected to benefit from the upcoming AI era. US big tech companies with world-class technological capabilities led the US economy in 2023 based on strong fundamentals, and long-term growth is anticipated driven by AI as a new growth engine. This year, expectations of interest rate cuts have further increased attention on investments in technology and large-cap stocks.

While investing in the growth potential of big tech, the ‘TIGER US Tech TOP10+10% Premium ETF’ is also gaining attention for its ability to provide stable income returns. Unlike typical covered call ETFs that sell 100% call options, this ETF limits the proportion of Nasdaq 100 option sales to an average of 40%. By utilizing a partial covered call strategy, it aims to pursue stable annual income returns of around +10% while following market growth. Since its listing last month, it paid its first dividend of 92 KRW, recording a distribution yield of 0.86%. This exceeds the monthly target of 0.83% required for a 10% annual distribution yield.

Additionally, the ‘TIGER US Tech TOP10+10% Premium ETF’ offers a new portfolio strategy for monthly dividend ETF investors. It is the first domestic ETF to pay dividends in the middle of each month, and when invested together with existing monthly dividend ETFs such as the ‘TIGER US Dividend+7% Premium Dow Jones ETF,’ which pays dividends at the end of the month, investors can build a portfolio that receives dividends every two weeks targeting an annual yield of around 10%. Shortening the dividend payment cycle can increase cash utilization for living expenses and enable various reinvestment strategies.

Kim Su-myeong, Senior Manager of the Strategic ETF Management Division, said, “The biweekly dividend portfolio using the ‘TIGER US Tech TOP10+10% Premium ETF,’ which pays dividends on the 15th?the first in Korea?is gaining popularity,” adding, “By utilizing the TIGER+% series such as the TIGER US Dividend+7% Premium Dow Jones ETF, investors can secure stable income returns biweekly while building a monthly dividend portfolio balanced with high-quality US dividend stocks and growth stocks.”

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