"Receive Dividends Monthly"... 'TIGER Miguk Dow Jones 30 ETF' Surpasses 100 Billion KRW in Net Assets Amid Institutional Buying Surge

[Asia Economy Reporter Yoonju Hwang] Mirae Asset Global Investments' 'TIGER US Dow Jones 30 ETF' has surpassed 100 billion KRW in net assets. This is thanks to a significant increase in institutional investors' buying demand after changing the dividend payment to a monthly schedule.

According to the Korea Exchange, as of the closing price on the 11th, the net assets of the 'TIGER US Dow Jones 30 ETF' recorded 105.4 billion KRW. Since the beginning of the year, the net assets increased by 26.3 billion KRW, supported by net purchases from not only individuals (2.7 billion KRW) but also institutional investors such as insurance companies (2.3 billion KRW), investment trusts (4.5 billion KRW), and banks (1.2 billion KRW). In particular, after the ETF dividend payment was changed to monthly on July 29, investor interest increased, with individuals making net purchases of 1.8 billion KRW.

The TIGER US Dow Jones 30 ETF is a monthly dividend product that pays dividends every month. The Dow Jones 30 index has a 12-month dividend yield of approximately 2.02%, which is higher than the S&P 500 index (about 1.57%), and 90% of the index components pay dividends quarterly, making it suitable for monthly dividend payments. Monthly dividends can be used in various ways, such as living expenses or reinvestment funds.

Namho Kim, head of the ETF management division at Mirae Asset Global Investments, said, "Since the dividend payment cycle of the TIGER US Dow Jones 30 changed to monthly from August, buying demand from investors who had been waiting for monthly dividend products has been flowing in. The Dow Jones 30 index components are composed of high-quality stocks with sufficient dividend payment capacity and strong corporate competitiveness, so investor interest increases especially when the economy is unstable."

Meanwhile, the TIGER US Dow Jones 30 ETF tracks the Dow Jones 30 index, which consists of 30 large-cap blue-chip companies representing the United States, and can be used as a pension product from a long-term investment perspective to enjoy tax benefits.

When traded through a pension account, transaction taxes are exempted, and capital gains and monthly dividends are subject to low-rate separate taxation as pension income tax at the time of pension receipt. Recently, the government announced a tax reform plan that uniformly applies a maximum contribution limit of 9 million KRW for tax deductions on pension account contributions regardless of income.