'TIGER US S&P500 Target Daily Covered Call' ETF to Switch to Mid-Month Distributions
Distribution Reference Date Changed from End of Month to Mid-Month
Distribution Rate Adjusted to Reflect Accumulated Dividends
Mirae Asset Global Investments announced on September 2 that it will change the distribution policy of the 'TIGER US S&P500 Target Daily Covered Call' exchange-traded fund (ETF) to mid-month distributions.
The TIGER US S&P500 Target Daily Covered Call ETF tracks the S&P500 index as its underlying asset. By utilizing short-term daily options and maintaining a low option writing ratio, the ETF closely follows most of the index’s upside while providing monthly cash flows.
With this change, the distribution reference date will be revised from the end of each month to the 15th of every month. In addition, accumulated stock dividends since listing will be used as distribution resources, and the distribution rate will also be adjusted. Going forward, investors will be able to enjoy more substantial cash flows consisting of both option premiums and stock dividends, using the 15th of each month as the reference date.
This change will take effect from September’s distribution. For September, the distribution reference date is the 15th, and investors must purchase by September 11 to be eligible to receive the distribution.
Notably, this enables the construction of a "biweekly distribution portfolio" using major US indices. As the TIGER US S&P500 Target Daily Covered Call ETF switches to mid-month distributions, investors can combine it with the TIGER US Nasdaq 100 Target Daily Covered Call ETF, which uses the end of the month as its reference date, to receive distributions twice a month.
Hot Picks Today
Despite "Insufficient Balance" Notices, They Board Anyway... Reports of Foreign Fare Evasion Mounting
- "If It Helps My Child's Studies, It's Worth Every Penny"... U.S. Parents Open Their Wallets for $10,000 Tests
- [Exclusive] "We Came for a KRW 140,000 Trip": Following Chinese Tourists in Korea Uncovers a 'Suspicious' Tour
- "I'm paying to stay, and you want me to do the laundry and dishes too?" ... Airbnb bans excessive cleaning demands
- "Baek Jongwon Had Been Quiet, Then Hit It Big"... Waits in the 100s in U.S. Despite KRW 46,000 Pork Belly
Lee Junghwan, Managing Director and Head of Strategic ETF Management at Mirae Asset Global Investments, stated, "With this change in the distribution policy, investors can continue investing in major US indices while receiving distributions on a biweekly basis. The ability to receive monthly distributions even in periods of high market volatility provides a compelling motivation to maintain long-term investments."
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.
