TIGER Korea Dividend Dow Jones ETF Newly Listed

Mirae Asset Global Investments announced on the 20th that it will newly list the 'TIGER Korea Dividend Dow Jones ETF' on the Korea Exchange.

The TIGER Korea Dividend Dow Jones ETF is a monthly dividend ETF that diversifies investments across 30 high-dividend blue-chip stocks in Korea. The ETF's underlying index is the 'Dow Jones Korea Dividend 30 Index.' This product is a 'Korean-style SCHD ETF' that applies the investment strategy of 'SCHD (Schwab U.S. Dividend Equity ETF),' a leading global dividend ETF listed in the United States, to the Korean stock market. As of the 19th, the main investment stocks include KB Financial Group (4.7%), LG Uplus (4.7%), KT&G (4.5%), Hana Financial Group (4.3%), and Woori Financial Group (4.2%).

The TIGER Korea Dividend Dow Jones ETF, which pursues SCHD's 'high dividend + quality' strategy, is based on dividend continuity, having paid dividends for 10 consecutive years. It also considers dividend growth, focusing on stocks that have steadily increased dividends over the past five years, and high dividend yield. The ETF also emphasizes company fundamentals, such as financial soundness and corporate growth potential. Certain conditions have been relaxed to suit the characteristics of the Korean stock market, including a market capitalization of KRW 1 trillion, a daily average trading value of KRW 1 billion, and the inclusion of 30 stocks without industry limits.

The TIGER Korea Dividend Dow Jones ETF can respond to market volatility through a relatively high dividend yield. Even if stock prices decline, portfolio performance can be defended through dividend income, enabling stable long-term investment. As of the end of last month, the Korea Dividend Dow Jones Index, which is the ETF's underlying index, outperformed the KOSPI 200 Index by approximately 69 percentage points over the past five years. According to S&P, as of the end of last year, the dividend yield of the TIGER Korea Dividend Dow Jones ETF's underlying index was 5.4%. The expected dividend per share at that time (dividend yield x index value) grew by 196.3% compared to 2018, with an average annual growth rate of about 20%.

Unlike traditional high-dividend stocks, the TIGER Korea Dividend Dow Jones ETF diversifies its portfolio around low-volatility sectors. Unlike the KOSPI 200 Index, which is heavily weighted toward information technology (IT), this ETF is focused on sectors such as financials, consumer discretionary, industrials, and consumer staples, which are less affected by exports and global economic cycles. The composition of the ETF also limits the maximum weight of each individual stock to 4%, minimizing internal and external environmental risks of individual companies.

As a monthly dividend ETF, the TIGER Korea Dividend Dow Jones ETF will pay a fixed per-share distribution every mid-month (on the 15th) starting in July. Investors can expect a stable cash flow each month.

Jung Hyun Jeong, Head of ETF Management at Mirae Asset Global Investments, said, "Dividend ETF investing, which has long been considered exclusive to the U.S. market, is now establishing itself as a new investment trend in Korea. The appeal of dividend ETFs is expected to grow further, driven by the government's value-up policies and the shareholder return initiatives of companies."

He added, "We expect that the high-dividend and quality portfolio of the TIGER Korea Dividend Dow Jones ETF will help investors secure steady cash flow while responding to market volatility."

To commemorate the launch of the new 'TIGER Korea Dividend Dow Jones ETF,' Mirae Asset Global Investments will hold a listing event for trading customers. From the 27th to the 20th of next month, some customers who meet the daily trading requirements for this ETF at Eugene Investment & Securities will receive a cultural gift certificate.