'TIGER US Nasdaq 100 Target Daily Covered Call' ETF Surpasses 2 Trillion Won in Net Assets

The Largest Overseas Covered Call ETF in Korea
Consistent Annual Distribution Rate of Around 15%

Mirae Asset Global Investments announced on July 23 that the net asset value of its 'TIGER US Nasdaq 100 Target Daily Covered Call' Exchange Traded Fund (ETF) has surpassed 2 trillion won.

According to the Korea Exchange, as of the previous day, the net asset value of the 'TIGER US Nasdaq 100 Target Daily Covered Call ETF' stood at 2.2234 trillion won. This is the largest among listed overseas covered call ETFs in Korea.

Listed in June 2024, this ETF has consistently paid an annual distribution of around 15% for approximately two years. Since its listing, the cumulative return including distributions has reached 54.3%. Furthermore, it has increased its monthly distribution from 120 won in July 2024 to 151 won as of this past June, marking about 26% growth in monthly distributions over two years. A Mirae Asset Global Investments official explained, "This result is a reflection of the target daily covered call strategy, which enhances participation during periods of stable share price or index rises."

This ETF is a monthly distribution type product that invests in the Nasdaq 100 index, which is mainly composed of leading U.S. technology stocks, while utilizing a daily covered call strategy to pursue regular cash flows. It seeks to capitalize on the growth potential of the Nasdaq 100, while generating distribution resources through option premiums.

Amidst the recent expansion in market volatility, investment demand has been increasing for strategies that aim to secure both the growth opportunities of equity investments and cash flow through option premiums. Covered call ETFs employ a strategy of selling call options while investing in stocks or indices in order to secure option premiums. Because this approach can provide regular cash flow depending on market conditions, it is being used as an alternative investment strategy during periods of volatility.

Lee Junghwan, Head of Strategic ETF Management at Mirae Asset Global Investments, stated, "The net asset value of the TIGER US Nasdaq 100 Target Daily Covered Call ETF exceeding 2 trillion won reflects investor demand for both growth and stable cash flow. We will continue to provide differentiated investment solutions to our clients by further developing innovative covered call strategies."

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