Mirae Asset Global Investments announced on the 3rd that the net assets of the ‘TIGER US S&P500 Target Daily Covered Call ETF’ have surpassed 200 billion KRW.
According to the Korea Exchange, as of the closing price on the 2nd, the net assets of the ‘TIGER US S&P500 Target Daily Covered Call ETF’ stand at 208.9 billion KRW. It is the only covered call ETF listed domestically that is based on the US benchmark index, the S&P500, and has been attracting strong interest from individual investors amid the rising US stock market.
The ‘TIGER US S&P500 Target Daily Covered Call ETF’ invests in the S&P500 index and aims for an annual dividend yield of 10% through monthly dividend payments. Unlike typical covered call ETFs, it lowers the option selling ratio to an average of around 10% and increases the participation rate in the S&P500 index’s upward movement.
It seeks to closely track the S&P500 index returns while simultaneously pursuing high monthly dividends. In fact, amid the continuous rise in the US stock market in November due to events such as the presidential election, the ‘TIGER US S&P500 Target Daily Covered Call ETF’ minimized the impact of option selling on stock price gains. It recorded a 5.08% return in November, matching the return of the ‘TIGER US S&P500 ETF,’ which does not utilize covered calls, during the same period.
Another characteristic is its pursuit of high monthly dividends. The November distribution for the ‘TIGER US S&P500 Target Daily Covered Call ETF’ was 93 KRW, a 3.3% increase from 90 KRW in October. By reducing the option selling ratio and maximizing participation in the S&P500 index, future dividend growth is also expected.
Kim Su-myeong, Senior Manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, "A proper balance between capital gains and income is crucial for steady dividends and dividend growth." He added, "The TIGER US S&P500 Target Daily Covered Call ETF is an optimized product for investors who want to invest maximally in the S&P500 index’s rise while also receiving high monthly dividends."
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