Mirae Asset 'TIGER Eunhaeng Gobaedang Plus TOP10' Tops High Dividend ETF Returns Since Early This Year

Mirae Asset Global Investments announced on the 6th that the ‘TIGER Eunhaeng Gobaedang Plus TOP10 ETF’ has ranked first in year-to-date returns among high-dividend ETFs listed in Korea.

According to the fund rating agency KG Zeroin, as of the 5th, the year-to-date return of the ‘TIGER Eunhaeng Gobaedang Plus TOP10 ETF’ is 28.6%. Based on returns assuming dividend reinvestment, this ETF is a monthly dividend ETF that pays a fixed dividend of 61 KRW per month. It ranked first among high-dividend ETFs listed domestically and bank stock ETFs, which are representative of high-dividend stocks.

The ‘TIGER Eunhaeng Gobaedang Plus TOP10 ETF’ focuses on the top 10 high-dividend stocks by concentrating investments on bank stocks, which are representative high-dividend stocks, combined with quality insurance stocks. It is composed of stocks among major domestic bank stocks that have paid cash dividends for three consecutive years and have high expected dividend yields. The 10 stocks include major financial holding companies and bank stocks with a market capitalization of over 500 billion KRW such as KB, Woori, Hana, and Shinhan, as well as high-dividend insurance stocks like Samsung Fire & Marine Insurance and Samsung Life Insurance.

Recently, it has led the rise in returns of the ‘TIGER Eunhaeng Gobaedang Plus TOP10’ as it is expected to be a core beneficiary of the government’s value-up program. The tax law amendment announced by the Ministry of Economy and Finance on the 25th of last month included measures to provide inheritance tax, corporate tax, and dividend income tax benefits to companies participating in value-up disclosures as part of plans to ‘enhance corporate competitiveness’ and ‘revitalize the capital market.’ Shinhan Financial Group and Woori Financial Group disclosed shareholder return plans such as expanding ROE to 10% and shareholder return rates to over 50%. KB Financial Group is also expected to disclose a corporate value enhancement plan in the second half of the year.

Kim Byung-seok, manager of the ETF Management Division at Mirae Asset Global Investments, said, “Both the banking and insurance industries have expressed intentions to expand shareholder returns and are expected to receive tax benefits,” adding, “While volatility in the domestic stock market is increasing, especially centered on tech stocks, bank stocks that recorded record-high quarterly earnings are showing active shareholder return intentions and are expected to play a defensive role.”