Mirae Asset Global Investments Raises Per-Share Distribution for "TIGER High Dividend Plus TOP10 Banks"

Mirae Asset Global Investments announced on the 25th that it plans to pay the highest per-share distribution since listing for its exchange-traded fund (ETF) "TIGER High Dividend Plus TOP10 Banks."

This ETF is scheduled to pay a distribution of 87 won per share this month. The distribution, which was 73 won last month, has been increased to 87 won. As expectations grow for separate taxation on dividend income from the constituent stocks, the ETF has recorded a cumulative return of 212.33% since listing.

Supported by this increase in distributions and strong performance, capital inflows into the ETF are continuing. As of the 24th, its net assets stood at 997.3 billion won. Compared with a year ago, the net asset size has grown more than threefold.

Rising interest in financial stocks centered on bank shares is underpinned by expectations for the expansion of shareholder return policies. As discussions on the third amendment to the Commercial Act gain momentum, the possibility of strengthening shareholder return policies to enhance shareholder value is coming into focus across the financial sector, including banks, securities firms, and insurers. In particular, the banking sector is viewed as having ample capacity to utilize various shareholder return tools, such as share buybacks and dividend increases, based on its stable profit-generating structure.

The introduction of the separate taxation system for dividend income is having a positive impact on the investment environment. Separate taxation on dividend income is a system under which, for dividends from companies that meet certain conditions, separate taxation is applied instead of comprehensive taxation. The more a company maintains or expands a high-dividend policy, the more favorable the tax structure can become for investors. As a result, the investment appeal of bank stocks with strong shareholder return tendencies is being highlighted, and interest in related ETFs is also expanding.

The TIGER High Dividend Plus TOP10 Banks ETF invests in 10 stocks, focusing on major bank stocks such as KB Financial Group, Shinhan Financial Group, Hana Financial Group, and Woori Financial Group, while also including insurance and securities stocks. By selecting and including stocks that are proactive in shareholder return policies, it is showing a trend of increasing distributions. Investors who purchase this ETF by the 25th will receive the distribution on March 4.

Jung Euihyun, Head of ETF Management at Mirae Asset Global Investments, said, "Nine out of the 10 constituent stocks of the TIGER High Dividend Plus TOP10 Banks ETF meet the criteria for separate taxation on dividend income," adding, "This ETF is a product that selects and invests in the most proactive shareholder return stocks among domestic equity ETFs."