TIGER Bank High Dividend Plus TOP10 ETF Net Assets Surpass 500 Billion KRW

Mirae Asset Global Investments announced on July 10 that the net asset value (NAV) of the 'TIGER Bank High Dividend Plus TOP10 ETF' has surpassed 500 billion KRW.

According to the Korea Exchange, as of the closing price on July 9, the NAV of the TIGER Bank High Dividend Plus TOP10 ETF stood at 577.9 billion KRW. Driven by growing expectations for expanded shareholder return policies by banks and the implementation of separate taxation on dividend income, both retail and institutional investors have been pouring funds into the ETF, resulting in more than a twofold increase compared to the approximately 230 billion KRW NAV at the end of last year.

The TIGER Bank High Dividend Plus TOP10 ETF focuses its investments on 10 high-dividend bank stocks. It is composed of major domestic bank stocks that have paid cash dividends for three consecutive years and have high expected dividend yields. The portfolio includes 10 stocks, such as KB, Woori, Hana, and Shinhan, which are major financial holding companies and banks with a free-float market capitalization of over 500 billion KRW, as well as high-dividend insurance stocks like Samsung Fire & Marine Insurance and Samsung Life Insurance.

Thanks to shareholder return policies, the TIGER Bank High Dividend Plus TOP10 ETF has delivered a strong return of 54% year-to-date as of July 9. Expectations remain high going forward. Since 2022, the shareholder return rate of financial holding companies has increased every year, and this year, the shareholder return rate of most bank-affiliated financial holding companies is expected to exceed 40%. In addition, an expansion of payout ratios to meet the standards for separate taxation on dividend income currently under government discussion, as well as benefits from the separate taxation itself, are also anticipated.

As a monthly dividend ETF, the TIGER Bank High Dividend Plus TOP10 ETF pays a fixed amount of distributions each month. With the introduction of advanced dividend policies, banks now have different record dates for dividends, such as quarterly or year-end, making it difficult for investors to predict the size of their dividends. Through the fixed monthly distributions of the TIGER Bank High Dividend Plus TOP10 ETF, investors can efficiently manage their assets.

Jung Hyun Jeong, Head of ETF Management at Mirae Asset Global Investments, stated, "The goal for banks this year, as confirmed through value-up disclosures, is to focus on profitability management through optimal capital allocation and to strengthen shareholder returns. Banks are an industry where shareholder return policies are directly linked to corporate value, making them likely to be the most direct beneficiaries of capital market revitalization policies."