Mirae Asset's 'TIGER Premium Covered Call Monthly Dividend ETF' Surpasses 1 Trillion KRW in Net Purchases This Year

Recently, investment demand for TIGER ETFs pursuing high levels of monthly dividends using covered call strategies has surged.

Mirae Asset Global Investments announced on the 16th that the cumulative net purchases by individuals of five types of ‘TIGER Premium Covered Call Monthly Dividend ETFs’ have surpassed 1 trillion KRW since the beginning of the year.

According to the Korea Exchange, as of the 15th, the cumulative net purchases by individuals of the ‘TIGER US 30-Year Treasury Premium Active (H) ETF’ since the beginning of the year amounted to 355.5 billion KRW. This is the largest scale among covered call ETFs listed domestically. As uncertainty over the timing of US interest rate cuts continues, investment demand for long-term US bonds has increased, attracting the attention of individual investors. Since its new listing in February, it has grown rapidly, with net assets reaching 602.6 billion KRW.

Purchases of covered call ETFs with the ‘+% Premium’ strategy are also ongoing. Unlike typical covered call ETFs that sell call options 100%, the ‘+% Premium’ strategy adjusts the proportion of option sales to maintain a targeted premium. Mirae Asset Global Investments introduced this strategy globally for the first time in June 2023. As of the 15th, since the beginning of the year, the ‘TIGER US Dividend +7% Premium Dow Jones ETF’ has attracted 282.4 billion KRW, and the ‘TIGER US Tech TOP10 +10% Premium ETF’ has attracted 245.4 billion KRW in individual net purchases.

Investor sentiment is also strengthening for the TIGER ultra-short-term monthly dividend ETFs, known as ‘Covered Call 2.0 ETFs.’ This strategy uses ultra-short-term options to minimize the proportion of option sales and maximize participation in index gains, addressing the limitations of traditional covered call ETFs. Since its listing on the 25th of last month, the ‘TIGER US Nasdaq 100 +15% Premium Ultra-Short-Term ETF’ has recorded individual net purchases of 183.4 billion KRW. The ‘TIGER US S&P 500 +10% Premium Ultra-Short-Term ETF (482730)’ has also recorded 80.7 billion KRW.

Amid high interest in the ‘TIGER Ultra-Short-Term Monthly Dividend ETFs,’ Mirae Asset Global Investments will conduct an interview with Nasdaq for global ETF investors. The interview will cover an introduction to the ‘TIGER US Nasdaq 100 +15% Premium Ultra-Short-Term ETF’ and detailed information about the ultra-short-term option strategy, and will be featured on the Nasdaq and Mirae Asset Global Investments TIGER ETF YouTube channels.

Kim Su-myeong, Senior Manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, “Using TIGER Premium ETFs, investors can invest in various assets such as major US indices, big tech, dividend stocks, and US bonds,” adding, “It is possible to construct an appropriate portfolio according to market conditions and simultaneously enjoy both ‘growth’ and ‘dividends,’ for example by using monthly distributions as retirement funds.”