Mirae Asset's 'TIGER Covered Call ETF' Surpasses Total Net Assets of 1 Trillion Won

Mirae Asset Global Investments announced on the 26th that the total net assets of the ‘TIGER Covered Call Exchange-Traded Fund (ETF)’ have surpassed 1 trillion KRW.

According to the Korea Exchange, as of the closing price on the 25th, the total net asset size of eight TIGER ETFs using the covered call strategy is 1.3075 trillion KRW. Currently, the total net assets of covered call ETFs listed domestically amount to 1.6607 trillion KRW, with TIGER ETFs accounting for about 85% of this, leading the domestic covered call ETF market.

The covered call ETF market is rapidly growing due to increasing interest in monthly dividends, considered a ‘second salary.’ A covered call is a strategy that involves holding a stock portfolio and selling call options. By utilizing the covered call strategy, losses are buffered by the option premium when the underlying asset declines, while gains are capped at a certain level when the underlying asset rises. This allows for stable income returns.

In particular, investors seeking high dividends by investing in high-quality underlying assets are focusing on U.S. investment covered call ETFs. In September 2022, Mirae Asset Global Investments launched Korea’s first U.S. investment covered call ETF, the ‘TIGER U.S. Nasdaq 100 Covered Call ETF.’ This ETF is the Korean version of Global X Nasdaq 100 Covered Call, a flagship product of Global X, Mirae Asset’s U.S. subsidiary. It has consistently paid high monthly dividends for over 10 years, presenting a long-term investment method using covered call ETFs.

The ‘TIGER U.S.+% Premium ETF’ series is also popular. This is a covered call ETF in which Mirae Asset Global Investments introduced the ‘+% Premium’ strategy for the first time worldwide. Unlike typical covered call ETFs that sell 100% of call options, the ‘+% Premium’ strategy adjusts the proportion of options sold to maintain a target premium. Investors can expect dividend yields that add a certain percentage (+%) to the underlying index’s annual dividend yield. The extent of stock price appreciation and dividend income varies depending on the proportion of options sold. As of the closing price on the 25th, the net asset size of the ‘TIGER U.S. Dividend +7% Premium Dow Jones ETF’ reached 478.6 billion KRW, and the ‘TIGER U.S. Tech TOP10 +10% Premium ETF (474220)’ also rapidly grew to 173.2 billion KRW within about two months since its new listing in January.

Kim Su-myeong, Senior Manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, “Through various TIGER covered call ETFs investing in U.S. major indices, high-quality dividend stocks, big tech growth stocks, and long-term bonds, investors can build underlying asset portfolios suited to their preferences while receiving high monthly dividends.” He added, “As various products are being launched, it is important to invest in covered call ETFs that maintain a proper balance between capital gains and income returns rather than simply pursuing high distribution rates.”

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