[Provided by Mirae Asset Global Investments]
[Provided by Mirae Asset Global Investments]

Mirae Asset Global Investments announced Thursday that the net assets of its TIGER US NASDAQ 100 Target Daily Covered Call ETF have surpassed 2 trillion won ($1.36 billion).

According to Korea Exchange data as of Wednesday, the ETF's net assets stood at 2.22 trillion won, making it the largest overseas covered call ETF listed in South Korea.

The ETF, which listed in June 2024, invests in the US NASDAQ 100 index while employing a daily covered call strategy to pay monthly distributions. It has consistently paid annual distributions of around 15% over roughly two years, and its cumulative return since listing — including distributions — stands at 54.3%.

Monthly distributions have also grown steadily, rising from 120 won in July 2024 to 151 won in June this year, a gain of about 26 percent.

Mirae Asset said that in periods of heightened market volatility like the present, investor demand is growing for strategies that combine equity growth opportunities with cash flow generated through option premiums. Retail investors net purchased 155.4 billion won worth of the ETF over the past month.

A covered call ETF invests in stocks or an index while simultaneously selling call options, using the option premiums collected as a source of distributions. The target daily covered call strategy uses same-day expiry call options.

"The TIGER US NASDAQ 100 Target Daily Covered Call ETF surpassing 2 trillion won in net assets reflects demand from investors who seek both growth potential and stable cash flow," said Lee Jeong-hwan, head of the strategic ETF management division at Mirae Asset Global Investments. "We will continue to build on innovative covered call strategies to deliver differentiated investment solutions to our investors."


moon@heraldcorp.com