Mirae Asset Raises Monthly Distribution for "TIGER Korea Dividend Dow Jones ETF"

As volatility in the domestic stock market intensifies, the 'Korean version of SCHD' exchange-traded fund (ETF)—recognized for its outstanding defensive capabilities—has attracted investors' attention by increasing its monthly distribution payout.

On August 13, Mirae Asset Global Investments announced that it will raise the monthly distribution payout for the 'TIGER Korea Dividend Dow Jones' ETF from 58 won per share to 61 won. The increased payout will apply starting with the August distribution, which will be paid to investors who purchased shares by August 12.

The TIGER Korea Dividend Dow Jones ETF incorporates the same investment philosophy as the prominent U.S. dividend growth ETF, SCHD, but applies it to the Korean stock market. Using S&P Dow Jones' 'Dow Jones Korea Dividend 30 Index' as its benchmark, the ETF closely evaluates metrics such as dividend yield, dividend growth rate, return on equity (ROE), and cash flow-to-debt ratio to select 30 listed domestic companies with superior financial soundness for investment.

The ETF has demonstrated notable defensive strength during periods of market volatility. While the KOSPI200 index fell approximately 9.5% from July 1 to August 12, during the same period, the TIGER Korea Dividend Dow Jones ETF rose by roughly 5.7%. This relative stability is attributed to the ETF's structure, which selects companies with strong dividend capacity and financial health—helping to deliver resilient performance amid heightened volatility.

The separate taxation of dividend income, implemented this year, is also a positive factor for investing in dividend stocks. Following the revision of the Special Tax Treatment Control Act in December last year, starting January 1 this year, dividend income from high-dividend companies that meet certain requirements—such as payout ratio—can now be taxed separately rather than through comprehensive taxation. With the institutional environment encouraging greater dividend payouts, if companies further enhance shareholder returns, interest in dividend stock investments and the ability of dividend stock ETFs to pay distributions are both expected to rise.

The trend of raising payouts continues throughout the TIGER monthly distribution ETF lineup as well. For instance, the TIGER Bank High Dividend Plus TOP10 ETF—another end-of-month distribution product—raised its payout from 87 won to 100 won per share in July, backed by the expansion of shareholder returns in bank stocks.

Jung Hyehyun, Head of ETF Management Division at Mirae Asset Global Investments, commented, "The implementation of separate taxation for dividend income is spurring domestic companies to increasingly return value to shareholders, which in turn is boosting the distribution capacity of dividend stock ETFs. TIGER Korea Dividend Dow Jones offers diversified investments in leading domestic stocks with robust dividend potential and financial strength, enabling investors to pursue both stable cash flow and long-term asset growth."

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