Lee Jun-yong, Vice Chairman of Mirae Asset Management, "'Nasdaq 100 Ultra-Short-Term ETF'... Will Mark the End of Monthly Dividend Products"

Listing of 'TIGER US Nasdaq 100+15% Premium Ultra-Short Term' on the 25th
"Pursuing Safety and Growth... Complementing Covered Call Drawbacks"

"The 'TIGER US Nasdaq100+15% Premium Ultra-Short-Term Exchange-Traded Fund (ETF)' is expected to mark the end of monthly distribution products."

Lee Jun-yong, Vice Chairman and CEO of Mirae Asset Global Investments, introducing the 'TIGER US Nasdaq 100+15% Premium Ultra-Short ETF' at the TIGER ETF press conference held on the 24th at Euljiro Mirae Asset Center One. Photo by Yoo Hyun-seok

Lee Jun-yong, Vice Chairman of Mirae Asset Global Investments, stated this on the 24th at a press conference for the 'TIGER US Nasdaq100+15% Premium Ultra-Short-Term ETF' held at Mirae Asset Center One in Euljiro, Seoul.

Vice Chairman Lee said, "For stable retirement, monthly dividend ETF investments should be chosen focusing on well-diversified representative index products, considering costs and other factors. Mirae Asset Global Investments will continue to strive to be a long-term investment partner for investors through the unique know-how of TIGER ETFs," he added.

Mirae Asset Global Investments' 'TIGER US Nasdaq100+15% Premium Ultra-Short-Term ETF' will be listed on the Korea Exchange on the 25th of this month. This product is a monthly dividend covered call ETF that invests in the US representative index, the Nasdaq100, aiming for an annual dividend yield of 15%. Through an ultra-short-term (Daily) options strategy, the option selling ratio has been reduced to below 10%. The remaining approximately 90% is designed to participate in the rise of the Nasdaq100 index. This alleviates the stock price rise limitation, which was a drawback of traditional covered calls.

Lee Kyung-jun, Head of the Strategic ETF Management Division, explained, "By minimizing the option selling ratio and using ultra-short-term options, we have addressed the profit and loss asymmetry limitation of covered call products, which do not rise when the stock price goes up but fall equally when it goes down. This allows the product to follow stock price increases, which was previously a limitation."

Additionally, it retains some advantages of traditional covered call ETFs. Lee Kyung-jun said, "Covered call products provide some degree of stock price protection during declines, although it is expected to be lower compared to basic covered calls."

Lee Kyung-jun, Head of the Strategic ETF Management Division at Mirae Asset Global Investments, introducing the 'TIGER US Nasdaq 100+15% Premium Ultra-Short ETF' at the TIGER ETF press conference held on the 24th at Euljiro Mirae Asset Center One. Photo by Yoo Hyun-seok

He also explained that in terms of management fees, it is more advantageous than other covered call ETFs. According to Mirae Asset Global Investments, the total fees for eight synthetic covered call ETFs in Korea range from 1% to 3%. The total fee for the TIGER US Nasdaq100+15% Premium Ultra-Short-Term ETF is 0.25% per year. He explained, "Covered call ETFs incur hidden costs such as swap fees deducted from the principal during synthetic management. Since we trade options directly, there are no additional costs."

The reason for choosing Nasdaq is because its future growth is guaranteed. He said, "If I had insight and could go back in time to pick the single best product, the answer would be Nasdaq100. It is the only index and investment product that encompasses both past and future innovation."

Mirae Asset Global Investments plans to continue leading the monthly dividend ETF market through various products including the ‘TIGER US Nasdaq100+15% Premium Ultra-Short-Term ETF’. As of the end of May, the domestic monthly dividend ETF market size is 8.8 trillion KRW, with TIGER ETFs accounting for 48.8% of the market.

They emphasize that with this product launch, lifecycle investing is now possible with Nasdaq100 alone. Mirae Asset Global Investments has established a diverse lineup including 'TIGER US Nasdaq100 Covered Call', Nasdaq100 leverage, and bond-mixed products. He stressed, "It is now possible to cover the entire life cycle with Nasdaq100 investments. I hope these products can help solve investors’ retirement and pension concerns."

This content was produced with the assistance of AI translation services.