Mirae Asset Management's 7 TIGER Covered Call ETFs in US Investments Surpass Total Net Assets of 3 Trillion Won

Mirae Asset Global Investments announced on the 30th that the total net assets of seven types of U.S. investment ‘TIGER Covered Call ETFs’ have surpassed 3 trillion KRW.

According to the Korea Exchange, as of the closing price on the 27th of this month, the net assets of the ‘TIGER U.S. 30-Year Treasury Covered Call Active (H) ETF’ amount to 925.4 billion KRW. This is the first time that a covered call exchange-traded fund (ETF) listed domestically has exceeded 900 billion KRW in net assets. This ETF, which employs a covered call strategy on long-term U.S. bonds, has recently attracted attention as it can simultaneously target expectations of a rate cut by the U.S. Federal Reserve and the uncertainty regarding the timing of such a cut.

Mirae Asset Global Investments’ domestically first introduced ‘Target Covered Call’ and ‘Target Daily Covered Call’ strategy ETFs are also rapidly expanding their net asset size. Unlike a general covered call ETF that sells 100% call options, the Target Covered Call strategy adjusts the proportion of option sales to maintain a target premium. The domestically first ‘Target Covered Call’ ETF, ‘TIGER U.S. Dividend Dow Jones Target Covered Call No. 2 ETF,’ has net assets of 748.4 billion KRW, and the domestically first ‘Target Daily Covered Call’ ETF, ‘TIGER U.S. Nasdaq 100 Target Daily Covered Call ETF,’ has recorded net assets of 476.9 billion KRW just over three months after listing.

In addition, Mirae Asset Global Investments has a lineup of seven U.S. investment TIGER Covered Call ETFs, including ‘TIGER U.S. Tech TOP10 Target Covered Call ETF,’ ‘TIGER U.S. Nasdaq 100 Covered Call (Synthetic) ETF,’ ‘TIGER U.S. S&P 500 Target Daily Covered Call ETF,’ and ‘TIGER U.S. Dividend Dow Jones Target Covered Call No. 1 ETF.’ Investors can build portfolios suited to their investment preferences through TIGER Covered Call ETFs composed of various underlying assets such as major U.S. indices, high-quality dividend stocks, big tech growth stocks, and long-term bonds, while pursuing high monthly dividends.

Kim Su-myeong, Senior Manager of the Strategic ETF Management Division, said, “It is important to invest in covered call ETFs that maintain an appropriate balance between capital gains and income rather than simply pursuing high distribution rates,” adding, “Since the recent name changes of covered call ETFs make it difficult to identify target distribution yields from product names, investors should check product strategies and distribution policies through the TIGER ETF website.”

Meanwhile, Mirae Asset Global Investments uniformly changed the names of nine TIGER Covered Call ETFs on the 25th of this month in accordance with the Financial Supervisory Service’s guidelines for covered call ETFs. The operational strategies, target distribution yields, and revenue structures of each product remain unchanged.