Distribution record date moves from month-end to the 15th

Payout rate also adjusted to reflect accumulated dividends since listing

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

Mirae Asset Global Investments announced Wednesday that it will change the distribution policy of its TIGER US S&P 500 Target Daily Covered Call ETF to a mid-month schedule.

The distribution record date will shift from the last day of each month to the 15th. The new policy takes effect with the September distribution. Investors who purchase the ETF by Sept. 11 this month will be eligible for the upcoming distribution.

The distribution rate will also be adjusted. The fund plans to draw on stock dividends accumulated since its listing as the source for payouts.

The TIGER US S&P 500 Target Daily Covered Call is a covered call ETF that tracks the S&P 500 index as its underlying asset. It uses short-dated daily options to keep the option-selling ratio low, allowing the fund to capture a substantial portion of index gains while providing monthly cash flow.

The ETF has assets under management of 655.3 billion won ($478 million), with a total annual expense ratio of 0.25 percent.

The record date change will also allow investors to build a "biweekly distribution portfolio" using major US index ETFs, receiving distributions twice a month.

The strategy involves holding the TIGER US S&P 500 Target Daily Covered Call, which uses the 15th as its record date, alongside the TIGER US NASDAQ 100 Target Daily Covered Call, which uses month-end.

"This change in distribution policy allows investors to continue investing in leading US indexes while receiving distributions every other week," said Lee Jeong-hwan, executive director and head of the strategic ETF management division at Mirae Asset Global Investments. "The ability to receive monthly distributions even amid high market volatility is the most powerful driver that keeps investors committed to long-term investing."


moon@heraldcorp.com