Mirae Asset Global Investments has launched a monthly dividend covered call exchange-traded fund (ETF) with a target annual dividend yield of up to 12%.
On the 20th, Mirae Asset Global Investments held a press conference at the FKI Conference Center in Yeouido, Seoul, to introduce its new product, the "TIGER U.S. Dividend Dow Jones Daily Target Covered Call ETF."
This product aims for an annual dividend yield of up to 12% while investing in stocks similar to the U.S. representative dividend ETF "SCHD." It is characterized by reducing the option sell ratio to below 10%.
Lee Kyung-jun, head of strategy ETF management at Mirae Asset Global Investments, said, "This is the final version of the U.S. Dividend Dow Jones Covered Call ETF, which was listed in 2022 and has received steady love from domestic investors," adding, "By reducing the option sell ratio to about 10% through a daily covered call strategy, we can maximize the distribution resources to 12% annually while expecting both stable growth and dividends."
Mirae Asset Global Investments emphasized that this product balances growth and distribution. The head noted, "There have been cases in the past where excessive competition for distribution occurred when monthly payout funds gained popularity in Japan, eventually harming the principal," and added, "Recently, various products with target distribution rates have been released in the domestic covered call ETF market, but excessive dividends exceeding the growth potential of the underlying assets should be noted."
The "TIGER U.S. Dividend Dow Daily Target Covered Call ETF" pays out dividends based on the 15th of each month. Mirae Asset Global Investments first introduced an ETF that pays dividends on the 15th of each month last January. With this launch, the lineup of Mirae Asset Global Investments' representative U.S. index-target daily covered call has increased to four types. The first three are the "TIGER U.S. S&P 500 Target Daily Covered Call," "TIGER U.S. NASDAQ 100 Target Daily Covered Call," and "TIGER U.S. AI Big Tech 10 Target Daily Covered Call."
On the same day, Kim Nam-ki, head of the ETF management division at Mirae Asset Global Investments (vice president), said, "As the aging population increases, interest in monthly dividend ETFs for retirement funds is growing day by day," and added, "We will continue to leverage the unique expertise of TIGER ETFs to develop innovative products and strive to be a long-term investment partner for investors."