Cumulative individual net purchases since listing reach 1.9 trillion won
Monthly dividend payouts draw long-term investors
Mirae Asset Global Investments announced Thursday that the combined net assets of its TIGER US S&P500 Target Daily Covered Call ETF and TIGER US NASDAQ 100 Target Daily Covered Call ETF have surpassed 3 trillion won ($2.22 billion). As of Wednesday, the two products held net assets of 650.1 billion won and 2.44 trillion won, respectively.
Both products employ a target daily covered-call strategy that sells short-dated daily options at roughly 10 percent of the portfolio, allowing participation in approximately 90 percent of the underlying index's upside while generating monthly cash distributions.
The TIGER US S&P500 Target Daily Covered Call ETF has recorded cumulative individual net purchases of 378.7 billion won since its listing. The fund recently shifted its distribution date from month-end to mid-month and expanded its distribution sources to include dividend income from the underlying shares, on top of existing option premium revenue.
The TIGER US NASDAQ 100 Target Daily Covered Call ETF's net assets of 2.44 trillion won make it the largest covered-call ETF tracking a major overseas index listed in South Korea. The fund has logged cumulative individual net purchases of 1.52 trillion won since listing and offers investors exposure to the NASDAQ 100 alongside a monthly cash-flow stream.
Holding both products together allows investors to build a biweekly distribution portfolio tied to the two major US benchmarks. The S&P500 Target Daily Covered Call ETF sets its distribution record date on the 15th of each month, while the NASDAQ 100 Target Daily Covered Call ETF uses the last day of the month — meaning investors who hold both receive distributions every two weeks.
Lee Jeong-hwan, head of the strategic ETF management division at Mirae Asset Global Investments, said the bigger obstacle to staying invested through volatile markets is psychological anxiety rather than fluctuating returns. "A biweekly distribution solution that invests in both the S&P500 and the NASDAQ 100 — America's two flagship indexes — and puts distributions in investors' hands every two weeks will serve as a powerful driver for maintaining long-term investment even in volatile markets," he said.
Mirae Asset Global Investments has been broadening its investor reach through a range of products. Its TIGER US S&P500 ETF recently ranked first in individual net purchases among all ETFs listed in South Korea in the second half of the year. From July 1 through Monday, over 52 trading days, individual net purchases of the fund totaled 1.46 trillion won.
yuni@heraldcorp.com
