Mirae Asset Management's 'TIGER US 30-Year Treasury Covered Call Active' Surpasses 1 Trillion KRW in Net Assets

Mirae Asset Global Investments announced on the 31st that the net assets of the ‘TIGER US 30-Year Treasury Covered Call Active (H) ETF’ have surpassed 1 trillion KRW.

According to the Korea Exchange, as of the closing price on the 30th, the net assets of the ‘TIGER US 30-Year Treasury Covered Call Active (H) ETF’ stand at 1.0413 trillion KRW. It is the first covered call ETF listed domestically to exceed net assets of 1 trillion KRW.

Amid growing popularity of US long-term bond covered call ETFs in the global ETF market, the ‘iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW)’ listed in the US is the world’s largest bond covered call ETF with assets of 1.09 billion USD (approximately 1.5 trillion KRW). Following this, the ‘TIGER US 30-Year Treasury Covered Call Active (H) ETF’ has become the second largest bond covered call ETF globally in terms of net assets.

The ‘TIGER US 30-Year Treasury Covered Call Active (H) ETF’ invests in US 30-year Treasury bonds and employs a covered call strategy to target monthly distributions of over 1%. Since its listing on February 27, it has paid a total of 8 dividends amounting to 8.9% as of the end of October. This is the highest level among bond monthly dividend ETFs listed domestically during the same period.

As a covered call ETF, the ‘TIGER US 30-Year Treasury Covered Call Active (H) ETF’ limits the call option selling ratio to a maximum of 30%, while the remaining 70% follows bond capital gains during interest rate cuts. Amid increasing uncertainty about the timing of interest rate cuts, investors can receive steady monthly dividends by leveraging the high volatility of the US long-term bond market while waiting for rate cuts.

Additionally, the ‘TIGER US 30-Year Treasury Covered Call Active (H) ETF’ can be invested in 100% through retirement pension accounts. When investing through pension savings and retirement pension (DC·IRP) accounts, dividend income tax (15.4%) on monthly distributions is deferred, effectively allowing reinvestment of taxes. Upon withdrawal as a pension, taxation is applied as pension income tax ranging from 3.3% to 5.5%, instead of dividend income tax.

Kim Su-myeong, Senior Manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, “This is the first time a covered call ETF has surpassed 1 trillion KRW domestically, and now the ‘TIGER US 30-Year Treasury Covered Call Active (H) ETF’ has established itself as the representative covered call ETF in Korea. As demand for covered call ETFs increases, TIGER ETFs will offer various products that pursue sustainable dividends through a proper balance of capital gains and income.”