Mirae Asset Launches 'TIGER US AI Big Tech 10 Target Daily Covered Call ETF'

Mirae Asset Global Investments announced on the 15th that it will newly list the ‘TIGER US AI Big Tech 10 Target Daily Covered Call ETF’ on the Korea Exchange.

The ‘TIGER US AI Big Tech 10 Target Daily Covered Call ETF’ is a monthly dividend ETF that pursues high levels of distributions while following the growth potential of AI big tech through a target daily covered call strategy. The target covered call strategy aims for an annual target premium and maximizes participation in the underlying asset’s upside by minimizing the proportion of option selling. When options are sold daily, as with this ETF, relatively high premiums can be expected.

The ‘TIGER US AI Big Tech 10 Target Daily Covered Call ETF’ lowers the option selling ratio to about 10% and participates approximately 90% in the rise of the artificial intelligence (AI) big tech market. It can be considered an upgraded version of the ‘TIGER US Tech TOP10 Target Covered Call ETF,’ which invests in US big tech companies through a monthly option selling method.

In terms of portfolio composition, it focuses more on ‘AI’ compared to the ‘TIGER US Tech TOP10 Target Covered Call ETF.’ Only highly profitable AI big tech stocks are selected based on Price/Earnings to Growth ratio (PEG), Operating Profit Margin (OPM), and average sales growth rate. Through this, it concentrates investments in 10 representative companies across three sectors: AI platforms, AI semiconductors, and AI cloud. Major included stocks are Apple, Google, Microsoft, and Amazon. It does not include companies like Amazon, Tesla, Adobe, and Netflix, which were mainly included in existing big tech ETFs.

The ‘TIGER US AI Big Tech 10 Target Daily Covered Call ETF’ is a monthly dividend ETF that pays distributions on the 15th of each month. When invested together with ETFs such as the ‘TIGER US Nasdaq 100 Target Daily Covered Call ETF’ and the ‘TIGER US S&P 500 Target Daily Covered Call ETF,’ which pay dividends at the end of each month, it can create a biweekly dividend solution with two payments per month. Distributing dividends on a biweekly basis can help stabilize the portfolio.

Mirae Asset Global Investments is holding a listing commemorative event for customers trading the ‘TIGER US AI Big Tech 10 Target Daily Covered Call ETF.’ Customers who meet the daily trading conditions for this ETF at SK Securities and Eugene Investment & Securities will receive cultural gift certificates through a lottery and other methods. Detailed event information can be found on each securities firm’s website.

Kim Su-myeong, Senior Manager of the Strategic ETF Management Team at Mirae Asset Global Investments, said, "TIGER ETFs are introducing an advanced covered call strategy to maximize market upside participation while obtaining stable monthly dividends." He added, "The TIGER US AI Big Tech 10 Target Daily Covered Call ETF is the most upgraded AI big tech monthly dividend investment," and "It is a high-yield monthly dividend ETF that further upgrades the previously launched big tech investment plus monthly dividend combination."