Four TIGER Target Daily Covered Call ETFs Surpass 1 Trillion Won in Total Net Purchases by Individual Investors

Mirae Asset Global Investments announced on July 17 that the total net purchases by individual investors in the four "TIGER Target Daily Covered Call ETFs" have surpassed 1 trillion won.

According to the Korea Exchange, the net purchases by individuals in the TIGER US Nasdaq 100 Target Daily Covered Call ETF amounted to 602.8 billion won from the beginning of this year through the previous day. The TIGER US Nasdaq 100 Target Daily Covered Call ETF invests in the Nasdaq 100 Index, a leading US index, and is a monthly dividend covered call ETF targeting an annual dividend yield of 15%.

The TIGER US S&P 500 Target Daily Covered Call ETF, which invests in the S&P 500 Index, recorded net individual purchases of 215.9 billion won over the same period. The TIGER US Dividend Dow Jones Target Daily Covered Call ETF and the TIGER US AI Big Tech 10 Target Daily Covered Call ETF attracted 131.7 billion won and 127.3 billion won in individual funds, respectively.

The TIGER Target Daily Covered Call ETFs reduce the proportion of option selling to 10% or less, with the remaining approximately 90% participating in the upside of the underlying index. Compared to typical covered call ETFs, these ETFs lower the option selling ratio and maximize participation in index gains, making them advantageous in bullish markets. By utilizing ultra-short-term options with only one day to expiration, the target daily strategy allows for more efficient premium capture.

Based on this structure, the four TIGER Target Daily Covered Call ETFs allow investors to benefit from the growth potential of the US market while also expecting high monthly distributions.

For example, the TIGER US Nasdaq 100 Target Daily Covered Call ETF paid out a total distribution of 1,464 won per share over the past 12 months since its listing in June 2024. The dividend yield during this period was 14.9%, or approximately 1.25% per month. As of the end of April, the monthly distribution per share was 111 won, which increased to 119 won by the end of June following the rebound in the US market, representing about 7% dividend growth.

Yoon Byungho, Head of Strategic ETF Management at Mirae Asset Global Investments, stated, "The most important factor when investing in covered call ETFs is the underlying asset, such as the S&P 500 or Nasdaq 100. The TIGER Target Daily Covered Call ETFs are structured to provide stable income based on underlying assets with sufficient growth potential."