Mirae Asset's 'TIGER US Nasdaq 100 Target Daily Covered Call ETF' Surpasses 500 Billion KRW in Net Assets

Mirae Asset Global Investments announced on the 21st that the net assets of the ‘TIGER Miguk Nasdaq 100 Target Daily Covered Call ETF’ have surpassed 500 billion KRW.

According to the Korea Exchange, as of the closing price on the 18th, the net assets of the ‘TIGER Miguk Nasdaq 100 Target Daily Covered Call ETF’ stand at 511.8 billion KRW. It exceeded 500 billion KRW in net assets about four months after its new listing on June 25 of this year.

The ‘TIGER Miguk Nasdaq 100 Target Daily Covered Call ETF’ invests in the Nasdaq 100 index, a representative U.S. index, and aims for an annual dividend yield of 15% as a monthly dividend covered call ETF. The option selling ratio is reduced to below 10%, while the remaining approximately 90% participates in the rise of the Nasdaq 100 index. This structure reduces the option selling ratio and maximizes participation in index gains, improving on the typical covered call ETF characteristic where the price does not rise during market upswings but falls together during downturns.

In fact, on the day after the ‘Black Monday’ market crash when the U.S. stock market sharply rebounded (August 6), the daily return of the ‘TIGER Miguk Nasdaq 100 +15% Premium Ultra-Short ETF’ was 5.13%. This was similar to the return of the ‘TIGER Miguk Nasdaq 100 ETF,’ which tracks the Nasdaq 100 index, at 5.20% during the same period. Even with the covered call strategy, there was effectively no limitation on price gains due to option selling.

Kim Su-myeong, Senior Manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, “The TIGER Miguk Nasdaq 100 Target Daily Covered Call ETF is designed to secure an appropriate level of income by innovatively lowering the call option selling ratio while also allowing for capital gains.” He added, “Covered call ETFs have recently attracted much attention, but for steady dividends and dividend growth, investors should find a proper balance between capital gains and income returns rather than simply seeking high distribution rates.”