TIGER 200 Target Weekly Covered Call ETF Tracks 95% of KOSPI Rally

Mirae Asset Global Investments announced on the 28th that the 'TIGER 200 Target Weekly Covered Call ETF' has recorded a return of 17.33% since its listing on the 23rd of last month.

During the same period, the KOSPI 200 Index rose by 18.27%. Despite utilizing a covered call strategy, the ETF achieved an impressive performance, tracking approximately 95% of the KOSPI's gains.

The TIGER 200 Target Weekly Covered Call ETF is a monthly dividend ETF that tracks the growth of the KOSPI 200 Index while targeting an annual distribution rate of up to 7%. Since its listing, with heightened volatility in the KOSPI 200 market, including the KOSPI surpassing 4,000, the ETF actively participated in the KOSPI 200's growth by selling options at around the 10% range.

Last month, Mirae Asset Global Investments introduced two products in the TIGER 7% Weekly Covered Call ETF series, utilizing an annual distribution cap of up to 7%. The 7% rate is considered an appropriate distribution level, taking into account the growth potential of the underlying assets, and represents a sustainable withdrawal solution offered by the TIGER ETF. By reflecting market gains as much as possible while focusing on performance and sustainable distributions rather than high payouts, the ETF has mitigated risks of principal erosion and reduced distributions.

Based on its stable performance, expectations for an increase in dividends for the TIGER 200 Target Weekly Covered Call ETF are also rising. On the 15th, the ETF paid its first dividend of 62 KRW per share. The ETF has continued to deliver solid results even after the ex-dividend date, and a dividend increase is expected next month.

Yoon Byungho, Head of Strategic ETF Management at Mirae Asset Global Investments, introduced the product by saying, "In a strong KOSPI market, ETFs like the 'TIGER 200 Target Weekly Covered Call ETF,' which also offer the potential for dividend increases, can be considered the best covered call strategy products."

He added, "TIGER ETF will strengthen disclosures on its website to help investors clearly understand both income and capital gains, and will support the establishment of a long-term investment culture through education."