Mirae Asset Global Investments announced on the 5th that the net assets of the ‘TIGER US Nasdaq 100+15% Premium Ultra-Short-Term ETF’ have surpassed 400 billion KRW.
According to the Korea Exchange, as of the closing price on the 4th, the net assets of the ‘TIGER US Nasdaq 100+15% Premium Ultra-Short-Term ETF’ stood at 406.7 billion KRW. It exceeded 400 billion KRW in net assets just over two months after its new listing on June 25.
The ‘TIGER US Nasdaq 100+15% Premium Ultra-Short-Term ETF’ invests in the Nasdaq 100 index, a representative US index, and aims for an annual dividend yield of 15% as a monthly dividend covered call ETF. Through an ‘ultra-short-term (Daily) option’ strategy, the option selling ratio is reduced to around 10%, while the remaining approximately 90% is designed to participate in the rise of the Nasdaq 100 index. This compensates for the downside of traditional covered call ETFs, which have limited upside when stock prices rise.
On the day following the sharp rebound in the US stock market after last month’s ‘Black Monday,’ the daily return of the ‘TIGER US Nasdaq 100+15% Premium Ultra-Short-Term ETF’ recorded 5.13%. This was similar to the return of 5.20% for the ‘TIGER US Nasdaq 100 ETF (133690),’ which tracks the Nasdaq 100 index during the same period. Even with the covered call strategy, there was effectively no limitation on stock price gains due to option selling.
The ‘TIGER US Nasdaq 100+15% Premium Ultra-Short-Term ETF’ allows investors to expect both the growth potential of Nasdaq 100 companies and steady income through the use of ultra-short-term options. As of August, the monthly distribution per share of this ETF is 117 KRW, with a monthly dividend yield of 1.25% (based on the price before the ex-dividend date).
Additionally, the ‘TIGER US S&P 500+10% Premium Ultra-Short-Term Option ETF (482730)’ recorded net assets of 155.1 billion KRW as of the closing price on the 4th, highlighting that the ‘TIGER Ultra-Short-Term Option Monthly Dividend ETFs’ are gaining attention from investors who need cash flow.
Kim Su-myeong, Senior Manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, “The ‘TIGER US Nasdaq 100+15% Premium Ultra-Short-Term ETF’ diversifies investments in innovative Nasdaq companies while reducing the option selling ratio to secure 15% cash flow. In particular, by directly trading ultra-short-term options, hidden costs during management are lowered, making it advantageous for long-term investment as a pension asset.”
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