According to the Korea Exchange, as of July 7, the NAV of the TIGER Korea Dividend Dow Jones ETF reached 210.8 billion KRW. Amid strong interest in domestic dividend investing, the ETF, which was newly listed on May 20, exceeded 200 billion KRW in NAV in just about 50 days.
The TIGER Korea Dividend Dow Jones ETF diversifies investments across 30 high-dividend blue-chip stocks, taking into account dividend yield, dividend growth, and quality factors. The ETF tracks the 'Dow Jones Korea Dividend 30 Index.' It applies the investment strategy of the globally recognized dividend ETF listed in the U.S., 'SCHD (Schwab U.S. Dividend Equity ETF),' to the Korean stock market. Just like the U.S. SCHD’s underlying index, it selects stocks that have paid dividends for at least 10 consecutive years, considering the comprehensive ranking of five-year dividend growth rate, dividend yield, debt ratio to cash flow, and return on equity (ROE).
With the recent passage of the amendment to the Commercial Act, the introduction of separate taxation on dividend income, which provides tax benefits to high-dividend companies, is emerging as the next step toward resolving the Korea Discount and ushering in the KOSPI 5000 era. As expectations for shareholder returns rise, there is increasing preference for stocks that offer stable cash flows, sound financial structures, as well as both dividend yield and dividend growth.
Starting this month, the TIGER Korea Dividend Dow Jones ETF will pay distributions on a monthly basis. Distributions will be made based on holdings as of the 15th of each month, and a fixed per-share distribution will be paid monthly on an annualized basis. For July, investors who purchase shares by the 11th will be eligible to receive the distribution. With a strategy that reflects not only the absolute scale of dividends but also their sustainable growth, investors are expected to benefit from stable cash flows.
To commemorate the first distribution, Mirae Asset Global Investments is holding an event for customers trading the TIGER Korea Dividend Dow Jones ETF. Those who participate in the first distribution event, starting from July 17, will have a chance to receive a gifticon through a drawing. Detailed information on the event can be found on the official TIGER ETF website.
Jung Hyun Jeong, Head of ETF Management at Mirae Asset Global Investments, stated, "The TIGER Korea Dividend Dow Jones ETF aims to steadily grow both principal and dividends through dividend investing based on fundamentals," adding, "We expect it to serve as an investment tool that avoids high-dividend traps and considers both the sustainability and growth of dividends."
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