'TIGER Dividend Covered Call Active' ETF Surpasses 2 Trillion Won in Individual Net Purchases Since Start of Year

Active covered-call strategy based on the KOSPI 200
Return of 40.29% since the start of the year

Mirae Asset Global Investments said on Oct. 27 that net purchases by individual investors in its TIGER Dividend Covered Call Active exchange-traded fund (ETF) since the start of the year had surpassed 2 trillion won.

According to the Korea Exchange, individual investors' net purchases of the TIGER Dividend Covered Call Active ETF since the start of the year totaled 2.4044 trillion won. They made net purchases averaging 240.5 billion won per month, starting with 87.4 billion won in January. Cumulative net purchases by individual investors first exceeded 2 trillion won at the end of September, and they made an additional 291 billion won in net purchases in October.

The ETF employs an active covered-call strategy that invests in dividend-growth stocks based on the KOSPI 200 and flexibly adjusts option strike prices and the proportion of options sold according to market conditions. Unlike a passive approach that mechanically sells options, the strategy captures a substantial share of stock price gains during market upswings and actively earns option premiums during sideways or declining markets.

Its return since the start of the year stands at 40.29%, the highest among covered-call ETFs listed in Korea, while its cumulative return since listing has reached 141.88%. Because investment performance directly contributes to the fund's distribution pool, it has also maintained a high distribution yield. In the second half of this year, it has continued its special distribution policy based on its first-half performance, consistently paying monthly distributions of around 2%.

Its structurally tax-exempt cash flow is another investment advantage. Option premium income from options listed in Korea is not subject to the 15.4% dividend income tax and is excluded from both comprehensive taxation on financial income and health insurance premium calculations. Approximately 97% of distributions from the TIGER Dividend Covered Call Active are tax-exempt, providing investors with tangible tax savings. The October distribution will be paid to investors who purchase the ETF by Oct. 28.

Lee Junghwan, head of the Strategic ETF Management Division at Mirae Asset Global Investments, said, "When choosing a covered-call ETF, investors should compare products based on total returns, including distributions, rather than distribution yield. The TIGER Dividend Covered Call Active combines strong investment performance with a tax-exempt structure, which will provide tangible benefits to investors."

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