Mirae Asset Global Investments said Thursday that its TIGER Dividend Covered Call Active ETF has posted the highest year-to-date return among covered-call ETFs listed in South Korea.
According to Korea Exchange, the ETF's year-to-date return, including distributions, reached 61.6% — the highest among 52 covered-call ETFs listed domestically over the same period.
Mirae Asset attributed the strong performance to a portfolio centered on high-quality companies with strong dividend growth potential, combined with an active covered-call strategy.
The active covered-call approach flexibly adjusts the proportion of call options sold and their strike prices depending on market conditions. When a market rally is anticipated, the fund reduces its options-selling exposure to capture more of the underlying assets' price appreciation.
The fund holds roughly 90 stocks, with Samsung Electronics (27.23%), SK Hynix (24.08%) and Samsung Electronics preferred shares (4.54%) among the top holdings. The fund has actively invested in preferred shares with high dividend yields to boost dividend income.
The strong performance has translated into growth in monthly distributions, which are paid at up to 2 percent of net asset value. Monthly payouts rose from 320 won per unit in January to 375 won last month.
Retail investor buying has also continued. According to ETF Check, retail investors net purchased 258.3 billion won ($184 million) worth of the TIGER Dividend Covered Call Active ETF over the past month.
"The TIGER Dividend Covered Call Active ETF selectively invests in high-quality domestic companies with strong dividend growth potential and pursues both capital gains and monthly distributions through a flexible options strategy," said Lee Jeong-hwan, head of the strategic ETF management division at Mirae Asset Global Investments. "We will continue to build an environment where investors can sustain monthly dividend investing, backed by strong total returns and growing distributions."
moon@heraldcorp.com
