Mirae Asset: "Buying Opportunity for TIGER US Dividend Dow Jones ETF at Lower Prices"

The performance of the TIGER US Dividend Dow Jones ETF has lagged behind major US indices, but some analysts suggest this presents a buying opportunity at lower prices.

On October 2, Kim Namho, Head of Global ETF Management at Mirae Asset Global Investments, held a YouTube webinar and introduced the TIGER US Dividend Dow Jones and the US dividend-focused exchange-traded fund (ETF) SCHD as “the representative products for US dividend investing not only in Korea but also globally.”

He went on to explain, “The total net assets of SCHD in the US amount to approximately 72 billion dollars, making it the second-largest US dividend stock ETF. The domestically listed TIGER US Dividend Dow Jones has a size of about 2.2 trillion won, ranking first among all US dividend stock ETFs.”

Kim noted, “The US Dividend Dow Jones has shown weaker performance compared to the S&P 500 this year. After a significant drop in early April, it has not recovered its losses, leading to a widening performance gap.”

He added, “Since April, the market has been led by big tech stocks, while the US Dividend Dow Jones, which has a higher proportion of energy, healthcare, and consumer staples sectors-sectors vulnerable to the actions of US President Donald Trump-has delivered relatively poor results.”

Kim pointed out, “The second-quarter dividend of SCHD paid in June this year decreased by about 5.3% compared to last year, raising concerns about stagnation in dividend growth for the US Dividend Dow Jones this year.” He explained, “There have been six instances in the past where the dividend decreased compared to the previous year in a given quarter, but in all those years, the annual dividend still increased.”

He further stated, “In 2023, the second-quarter dividend also declined by a similar margin, but the annual dividend still grew. There is a high likelihood that the annual dividend will increase again this year.” He emphasized, “This is an excellent opportunity to trust in the US Dividend Dow Jones, which has demonstrated dividend growth for about 13 years since its listing, and to increase holdings at a lower price.”

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