TIGER US Dividend Dow Jones Target Daily Covered Call Net Assets Surpass 100 Billion Won

Mirae Asset Global Investments announced on the 13th that the net assets of the ‘TIGER US Dividend Dow Jones Target Daily Covered Call ETF’ have surpassed 100 billion KRW.

According to the Korea Exchange, as of the 12th, the TIGER US Dividend Dow Jones Target Daily Covered Call ETF recorded net assets of 125.7 billion KRW. It was newly listed on the 21st of last month and exceeded 100 billion KRW in net assets. The cumulative net purchase amount by individuals reached 77.3 billion KRW, ranking first among the 36 covered call ETFs listed domestically.

The TIGER US Dividend Dow Jones Target Daily Covered Call ETF is the first domestic ETF to combine the US representative dividend ETF ‘SCHD’ with a daily covered call strategy. It invests in the same underlying assets as SCHD and is a monthly dividend covered call ETF targeting an annual dividend yield of up to 12%. By utilizing daily options, the option selling ratio is minimized to around 10%, allowing for potential stock price appreciation. Among covered call ETFs using the US Dividend Dow Jones index listed domestically, it has the lowest call option selling ratio.

As a monthly dividend ETF, it also offers the expectation of stable cash flow every month. Dividends are paid based on the 15th of each month. The first dividend payment after listing will be on the 18th, with a dividend of 99 KRW per share. The monthly dividend yield is 1.00%.

Kim Su-myeong, Senior Manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, "The main dividend source of the TIGER US Dividend Dow Jones Target Daily Covered Call ETF is option premiums, which are less affected by recent changes in the taxation method of foreign withholding tax on funds." He added, "In overseas covered call ETFs, dividends sourced from option premiums maintain tax deferral benefits within pension accounts, allowing for long-term investment effects."

Mirae Asset Global Investments is holding a monthly dividend ETF quiz event to celebrate the first dividend payment of the TIGER US Dividend Dow Jones Target Daily Covered Call ETF. Among those who answer correctly, prizes such as gifticons will be provided through a draw.