Mirae Asset's TIGER US S&P500 Target Daily Covered Call ETF Surpasses 300 Billion KRW in Net Assets

Mirae Asset Global Investments announced on the 16th that the net assets of the 'TIGER US S&P500 Target Daily Covered Call ETF' have surpassed 300 billion KRW.

According to the Korea Exchange, as of the closing price on the 15th, the net assets of the TIGER US S&P500 Target Daily Covered Call ETF stand at 313.5 billion KRW.

The TIGER US S&P500 Target Daily Covered Call ETF invests in the S&P500 index and aims for an annual dividend yield of 10%, distributing dividends monthly. Unlike typical covered call ETFs, it features a lower average option selling ratio of around 10%. Among covered call ETFs utilizing the S&P500 index listed domestically, it has the lowest call option selling ratio. This allows participation in more than 90% of the S&P500 index's upside.

With a low option ratio, the TIGER US S&P500 Target Daily Covered Call ETF can respond flexibly to sharp market fluctuations. As expectations for a US Federal Reserve interest rate cut diminish and market uncertainty rises, the ETF experiences less upside limitation caused by options and can participate steadily in market rebounds.

Unlike traditional covered call ETFs, it also imposes fewer restrictions on stock price increases. In November last year, when the US presidential election took place, the TIGER US S&P500 Target Daily Covered Call ETF posted a return of 5.08%, matching the return of the TIGER US S&P500 ETF during the same period. Despite employing a covered call strategy, the low option selling ratio did not limit stock price gains.

Another characteristic is its pursuit of high monthly dividends. The December dividend of the TIGER US S&P500 Target Daily Covered Call ETF was 97 KRW per share, a 4.3% increase from 93 KRW in November. By reducing the option selling ratio and maximizing participation in the S&P500 index, future dividend growth is also expected.

Kim Su-myeong, Senior Manager of the Strategic ETF Management Division at Mirae Asset Global Investments, stated, "The TIGER US S&P500 Target Daily Covered Call ETF does not excessively raise its target payout ratio, allowing investors to expect steady dividends and dividend growth from a long-term investment perspective." He added, "With various covered call ETFs launched, including high dividend strategies, it is important for investors to carefully check the types of options and selling ratios before investing."

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