TIGER US Major Index Covered Call ETFs 3 Types Total Net Assets Surpass 1 Trillion Won

Mirae Asset Global Investments announced on the 27th that the total net assets of the three 'TIGER US Major Index Covered Call ETFs' have surpassed 1 trillion KRW.

According to the Korea Exchange, as of the 26th, the net assets of the TIGER US Nasdaq 100 Target Daily Covered Call ETF and the TIGER US S&P 500 Target Daily Covered Call ETF are 664.9 billion KRW and 326 billion KRW, respectively. These two ETFs track major US indices and apply a covered call strategy with monthly dividends.

In particular, these two ETFs are the first in Korea to incorporate the 'Target Daily' covered call strategy. By utilizing daily options, the option selling ratio is reduced to below 10%, while the remaining approximately 90% participates in the rise of the major US indices. This structure reduces the option selling ratio and maximizes participation in index growth, allowing investors to enjoy growth potential while expecting steady dividends. The annual target dividend yield is 15% for the TIGER US Nasdaq 100 Target Daily Covered Call ETF and 10% for the TIGER US S&P 500 Target Daily Covered Call ETF.

Since its listing in 2022, the 'TIGER US Nasdaq 100 Covered Call (Synthetic) ETF,' which has maintained a monthly dividend yield of about 1% over a long period, has also established itself as a representative US investment covered call ETF in Korea. As of the 26th, its net asset size is 403.6 billion KRW. It is the Korean version of 'Global X Nasdaq 100 Covered Call (QYLD),' the flagship monthly dividend ETF of Global X, Mirae Asset’s US ETF management subsidiary, targeting an annual dividend yield of 12%.

The TIGER US Major Index Covered Call ETFs have gained more attention since the beginning of this year due to changes in the foreign withholding tax credit method. The distribution source of covered call ETFs comes from option premiums rather than overseas stocks, so the change in the credit method does not affect them. When dividends are reinvested in ISA and pension accounts, the deferral effect is maintained, allowing for long-term investment benefits.

Kim Su-myeong, Senior Manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, "Distributions provided through option premiums in overseas covered call ETFs can enjoy the same tax deferral benefits in pension accounts as before, making them highly valuable." He added, "In a situation where concerns about economic recession are growing due to factors such as the tariff war initiated by former US President Donald Trump and the weakening US consumer confidence index, investors can receive monthly distributions through the TIGER US Major Index Covered Call ETFs and respond stably to market volatility."