Mirae Asset Strengthens Educational Content for Monthly Dividend ETFs

Mirae Asset Global Investments announced on September 10 that it will strengthen its educational content to promote the correct investment principles for monthly dividend ETFs.

Starting this month, Mirae Asset Global Investments will introduce stable and sustainable monthly dividend ETF investment methods based on the principle of "Honest TIGER ETF." As a leading asset management company in the monthly dividend ETF market, the firm aims to foster a sound long-term investment culture for monthly dividend ETFs together with investors.

The domestic monthly dividend ETF market is rapidly growing, driven by increasing demand from investors seeking stable cash flows. Covered call monthly dividend ETFs, which offer high distribution rates by simultaneously utilizing underlying asset dividends and call option writing premiums, are gaining attention. However, selecting products solely based on high distribution rates may result in excessive distributions that exceed the growth potential of the underlying assets, potentially damaging long-term investment performance and asset value. Therefore, investors should carefully consider appropriate distribution rates.

The "Honest TIGER ETF" content is available on the TIGER ETF website and YouTube channel. The "ETF Insight" section on the TIGER ETF website features a series titled "The Basics of Monthly Dividend Investing." Content such as "Understanding ETF Distributions" and "Covered Call ETF Distribution Rates in Overseas Cases" is available. The company will also introduce new content titled "Appropriate Distribution Rates Suggested by TIGER."

The Smart Tiger YouTube channel will also launch a new segment called "The Basics of Monthly Dividend Investing." Topics such as "Which Monthly Dividend ETF Is Right for Me?" and "Understanding Distributions" have been posted. Video content tailored to investors, including "Why Covered Call ETF Distribution Rates Shouldn't Be Too High" and "What Is an Appropriate Distribution Rate?" will be released sequentially.

Mirae Asset Global Investments is leading the domestic monthly dividend ETF market. Since launching Korea's first covered call ETF, "TIGER 200 Covered Call OTM," in 2012, the company has leveraged its expertise in covered call strategies to manage a total of 13 covered call ETFs with net assets of 4.987 trillion won. It is the largest covered call monthly dividend ETF manager in Korea.

Seong Taekyung, CEO of the ETF Pension Platform at Mirae Asset Global Investments, said, "The covered call strategy of monthly dividend ETFs is an attractive way to provide stable cash flows," adding, "Excessive distribution rates can undermine long-term performance." He continued, "Mirae Asset Global Investments will fulfill its role as a leading asset manager by adhering to principled management and providing proper investment education, so that investors can pursue healthy and sustainable monthly dividend investments."

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