Mirae Asset Management Announces Dividend Payment for ‘TIGER US Philadelphia Semiconductor Leverage ETF’

Mirae Asset Global Investments announced on the 30th that the ‘TIGER US Philadelphia Semiconductor Leverage (Synthetic) Exchange-Traded Fund (ETF)’ will pay dividends.

The ‘TIGER US Philadelphia Semiconductor Leverage (Synthetic) ETF’ is scheduled to pay its first dividend on August 2. The dividend record date (holding 기준) is July 31. Starting with this first dividend, it will conduct quarterly dividends four times a year. Among overseas leverage ETFs listed domestically, the ‘TIGER US Philadelphia Semiconductor Leverage (Synthetic) ETF’ is the first to pay dividends. Typically, leverage ETFs do not pay dividends but reinvest due to product structures such as swaps.

The ‘TIGER US Philadelphia Semiconductor Leverage (Synthetic) ETF’ is a leverage ETF that tracks twice the daily return of the US Philadelphia Semiconductor Index. This index, composed of 30 major global non-memory semiconductor companies including Nvidia, AMD, and Qualcomm, represents the global semiconductor industry. Currently, TIGER ETF is the only ETF in Korea that tracks the US Philadelphia Semiconductor Index.

Mirae Asset Global Investments decided to pay dividends to return profits based on the excellent long-term performance of the ‘TIGER US Philadelphia Semiconductor Leverage (Synthetic) ETF.’ According to the Korea Exchange, as of the 29th, the ETF’s year-to-date return is 59.9%. The annual return for 2023 was 171.2%, ranking first among all ETFs listed domestically.

In particular, amid growing demand for dividends among ETF investors recently, it is expected to provide cash flow to investors of the ‘TIGER US Philadelphia Semiconductor Leverage (Synthetic) ETF.’ Since last year, fueled by the AI boom, semiconductor companies’ stock prices have soared, strengthening individual investors’ buying momentum for this ETF. As of the 29th, the cumulative net purchase amount by individuals for this ETF since the beginning of the year reached 65.2 billion KRW.

Jongmin Lee, manager of the Global ETF Management Division at Mirae Asset Global Investments, said, “Despite the high volatility characteristic of leverage products, thanks to past excellent performance and the growth potential of the semiconductor industry, the ‘TIGER US Philadelphia Semiconductor Leverage (Synthetic) ETF’ has established itself as a long-term investment vehicle. Through quarterly dividends, investors can secure steady cash flow, which not only benefits from the long-term growth of the global semiconductor industry but also adds advantages for diversifying and utilizing portfolios in various ways.”