Focused Investment in Nvidia
12% Annual Monthly Dividend ETF with US Treasury Covered Call Stability
Mirae Asset Global Investments announced on the 16th that it will newly list the ‘TIGER Nvidia US Treasury Covered Call Balance (Synthetic) ETF’ on the Korea Exchange on the 17th.
The TIGER Nvidia US Treasury Covered Call Balance (Synthetic) ETF is a bond-mixed ETF that simultaneously pursues the growth potential of Nvidia, which leads the global artificial intelligence (AI) industry growth, and the stability of the US 30-year Treasury bond. The portfolio is composed of 30% Nvidia stock and 70% US 30-year Treasury bonds, allowing for diversification benefits through the asset allocation balance between stocks and bonds.
As a covered call monthly dividend ETF, it seeks a balance between growth and income. In typical bond-mixed ETFs using a covered call strategy, the covered call strategy is applied to the ‘stock’ underlying asset. However, the TIGER Nvidia US Treasury Covered Call Balance (Synthetic) ETF executes the covered call strategy on the US 30-year Treasury bonds, not Nvidia stock. This design allows full participation in Nvidia’s stock price appreciation while generating monthly dividend cash flow from the US 30-year Treasury bonds.
The TIGER Nvidia US Treasury Covered Call Balance (Synthetic) ETF can be invested in 100% through retirement pension (DC, IRP) accounts. Investors with a stable investment preference can enjoy Nvidia’s growth potential, the stability of the US 30-year Treasury bonds, and monthly dividends through the TIGER Nvidia US Treasury Covered Call Balance (Synthetic) ETF within their retirement pension accounts.
For investors who want to actively invest in Nvidia through their retirement pension accounts, the TIGER overseas equity ETFs can be used together. By investing 70% in TIGER overseas equity ETFs such as TIGER US Philadelphia AI Semiconductor Nasdaq ETF and TIGER US AI Big Tech 10 ETF, which have a high Nvidia weighting of about 20%, and allocating the remaining 30% to the TIGER Nvidia US Treasury Covered Call Balance (Synthetic) ETF, the overall Nvidia weighting within the retirement pension can be maximized to 23%.
To commemorate the launch of the TIGER Nvidia US Treasury Covered Call Balance (Synthetic) ETF, Mirae Asset Global Investments is conducting a listing event for trading customers. Customers who meet the daily trading conditions for this ETF at SK Securities, Eugene Investment & Securities, and Daishin Securities will be entered into a draw to receive cultural gift certificates.
Oh Dong-jun, head of the Strategic ETF Management Team at Mirae Asset Global Investments, said, "Ahead of the year-end tax settlement season, investing in the ‘TIGER Nvidia US Treasury Covered Call Balance (Synthetic) ETF’ through pension accounts allows investors to enjoy triple benefits: tax credit advantages, Nvidia’s growth potential, the stability of the US 30-year Treasury bonds, and monthly dividends targeting an annual yield of around 12%." He added, "We expect that effective responses can be made through asset allocation even in phases of increased volatility in the global stock market."
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