Utilizing Covered Call Strategy
Pursuing an Average Monthly Distribution Rate of 0.6%
Mirae Asset Global Investments announced on the 21st that the net assets of the "TIGER Dividend Premium Active Exchange-Traded Fund (ETF)" have surpassed 100 billion KRW.
According to the Korea Exchange, as of the previous day's closing price, the net assets of the "TIGER Dividend Premium Active ETF" amount to 104.3 billion KRW. It exceeded 100 billion KRW in net assets within 7 trading days since its listing on the 12th.
This product is a monthly dividend-type ETF targeting an average monthly distribution rate of about 0.6%. Recently, as economic uncertainties have increased, demand from investors seeking stable cash flow has grown. To achieve the monthly average target distribution rate of 0.6%, it utilizes a covered call strategy based on a balanced portfolio of "dividends" and "growth."
A covered call is a strategy that involves holding a portfolio of underlying stocks and selling call options. By employing a covered call strategy, losses are buffered by the option premium when the underlying asset declines, while gains are capped at a certain level when the underlying asset rises. Investments are made in stocks that are shareholder-friendly by comprehensively considering corporate dividend yields, dividend growth rates, and share repurchases.
Additionally, it is managed using the same strategy as the "Mirae Asset Dividend Premium Fund," which has a stable performance record of over 10 years. The Mirae Asset Dividend Premium Fund, established in 2012, is Mirae Asset's flagship public offering fund. As of the previous day, its net assets totaled 1.0292 trillion KRW. The "TIGER Dividend Premium Active ETF" is the first ETF in Korea to be managed under the same name and strategy as a specific public offering fund. Compared to public offering funds, ETFs offer freer trading, making it more convenient and simple to invest in companies with dividend growth potential.
Hyun Kyung Lee, Head of AI Financial Engineering Operations at Mirae Asset Global Investments, stated, "The TIGER Dividend Premium Active ETF aims for a monthly distribution rate of about 0.6% through a balanced portfolio containing both dividend and growth stocks and an active covered call strategy. We plan to manage it stably so that it can establish itself as a product suitable for long-term investments such as pensions."
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