'TIGER Dividend Covered Call Active' ETF Ranks No.1 in Year-to-Date Returns Among Covered Call ETFs in Korea

Monthly Distribution Grows from KRW 320 to KRW 375

Mirae Asset Global Investments announced on August 20 that the 'TIGER Dividend Covered Call Active' Exchange-Traded Fund (ETF) has recorded the highest year-to-date return among domestic covered call ETFs listed in Korea.

According to the Korea Exchange, the ETF’s year-to-date cumulative return, including dividend distributions, stood at 61.6%. This represents the highest figure among 52 covered call ETFs listed in Korea during the same period.

Thanks to the outstanding performance of the TIGER Dividend Covered Call Active ETF, the monthly distribution has also grown. The fund has shown practical distribution growth, with the payout increasing from KRW 320 in January at the start of the year to KRW 375 in July. This result is attributed to pursuing high total returns typical of covered call ETFs, aiming for both capital gains and monthly cash flow.

It is analyzed that the strong performance is the result of an actively managed portfolio focusing on high-quality companies with dividend growth potential, combined with a flexible covered call strategy tailored to market conditions. The active covered call strategy flexibly adjusts both the proportion of call options sold and the strike price according to the market environment. When a bullish market is anticipated, the proportion of options sold is lowered to increase participation in the underlying asset's upside, while the option strategy is managed dynamically depending on market conditions.

The portfolio is composed of about 90 stocks, more concentrated than the KOSPI 200, and includes Samsung Electronics (27.23%), SK hynix (24.08%), and Samsung Electronics Preferred (4.54%). The strategy also proactively invests in preferred stocks with high dividend yields to further enhance dividend income.

Lee Junghwan, Head of the Strategic ETF Management Division at Mirae Asset Global Investments, stated, "The TIGER Dividend Covered Call Active ETF selectively invests in high-quality domestic companies with dividend growth potential, while utilizing a flexible options strategy to pursue both capital gains and monthly distributions. Moving forward, we aim to establish an environment where investors can continue to engage in monthly dividend investing, leveraging strong total returns and distribution growth."

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