Strengthened Buying by Individual Investors Since Early Year Due to High Monthly Dividends
Mirae Asset Global Investments announced on the 4th that the ‘TIGER Reits Real Estate Infrastructure ETF (329200)’ recorded the highest distribution rate among domestic monthly dividend ETFs. As strong buying demand from individual investors grew due to high monthly dividends, the net purchase amount by individuals for this ETF exceeded 20 billion KRW this year. This accounts for about 90% of the total net purchase amount by individuals in all domestic listed REITs ETFs.
According to the Korea Exchange, as of the 3rd, the net assets of the ‘TIGER Reits Real Estate Infrastructure ETF’ stood at 238.7 billion KRW, making it the largest among domestic REITs ETFs. Listed in 2019, this ETF allows easy investment in the real estate and infrastructure markets and provides steady income returns, attracting significant interest from individual investors.
In particular, as monthly dividend ETFs that offer steady monthly income gain popularity, the ‘TIGER Reits Real Estate Infrastructure ETF’ recorded the highest distribution rate among domestic monthly dividend ETFs. This ETF pays monthly distributions based on rental income generated from various REIT assets such as offices, hotels, and logistics warehouses. It has enhanced stability by investing not only in high-quality REITs with a market capitalization exceeding 200 billion KRW but also in infrastructure investment companies like Macquarie Infrastructure. With distribution rates of 1.05% in March and 0.99% in April, it ranked first among monthly dividend ETFs for the past two months, and a high annual distribution rate of around 7% is expected this year.
Furthermore, as the REITs market, which experienced a decline in stock prices due to rapid interest rate hikes last year, is expected to recover this year, the cumulative net purchase amount by individual investors in the ‘TIGER Reits Real Estate Infrastructure ETF’ has been steadily increasing. In March, individual investors net purchased 5.3 billion KRW of this ETF, increasing to 9.3 billion KRW in April. The total cumulative amount since the beginning of the year reaches 23 billion KRW. This ETF is the only domestic listed REITs ETF with a cumulative net purchase amount by individuals exceeding 10 billion KRW since the start of the year.
Kim Byung-seok, manager of the ETF Management Division at Mirae Asset Global Investments, said, “While investment sentiment in the real estate market has weakened due to the recent global banking instability, the office market continues to see declining vacancy rates and rising rents. Due to the lowered valuation of REITs, the distribution rate has actually increased, making it an attractive level.”
Meanwhile, Mirae Asset Global Investments has the largest lineup of domestic monthly dividend ETFs. In addition to the ‘TIGER Reits Real Estate Infrastructure’ ETF, a total of nine TIGER ETFs pay monthly distributions, including ‘TIGER US Nasdaq 100 Covered Call (Synthetic)’, ‘TIGER Reits Real Estate Infrastructure Bond TR KIS’, ‘TIGER 200 Covered Call ATM’, ‘TIGER US MSCI REITs (Synthetic H)’, ‘TIGER 200 Covered Call 5% OTM’, ‘TIGER Global Multi-Asset TIF Active’, ‘TIGER US Dow Jones 30’, and ‘TIGER US S&P 500 Dividend Aristocrats’.
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