Mirae Asset Global Investments announced on April 6th that the net assets of the "TIGER US Nasdaq 100 Covered Call (Synthetic) ETF (441680)" have exceeded 50 billion won.
According to the Korea Exchange, the net asset of "TIGER US Nasdaq 100 Covered Call (Synthetic) ETF" based on the closing price on April 5 is 51.2 billion won.
This ETF uses a covered call strategy based on the US Nasdaq 100 index for the first time in South Korea. The ETF has been net bought by individual investors this year, with about 15 billion won flowing in from individual investors since the beginning of the year, amidst the sideways trend of the Nasdaq market.
A covered call strategy involves buying an underlying asset and simultaneously selling a call option on that asset. This strategy helps to buffer the loss by the option selling premium when the underlying asset goes down, and limits the rate of return to a certain level when the underlying asset goes up.
The "TIGER US Nasdaq 100 Covered Call (Synthetic) ETF" pays monthly dividends and is currently attracting attention with the highest dividend rate among listed monthly dividend ETFs in Korea. Since its listing in September of last year, it has recorded a monthly dividend rate of 1.00% every month, drawing attention from pension investors and others who are interested in receiving steady cash monthly in the stock market, where volatility has increased.
The ETF is also the Korean version of "Nasdaq 100 Covered Call ETF (QYLD)", a representative product of Global X, a US subsidiary of Mirae Asset Global Investments. The advantage of this ETF is its convenience to invest in.
Unlike QYLD investment, "TIGER US NASDAQ 100 Covered Call (Synthetic) ETF" does not require currency exchange and can be invested in a pension account. In particular, when investing in a pension account, dividend income tax on monthly dividends is deferred until withdrawal, making it more advantageous for long-term investments.
“Recently, in a situation where concerns over economic recession continue, such as bankruptcies of large global banks, covered call strategies that generate steady cash flow are in the limelight," said Kim Soo-myeong, senior manager of Mirae Asset Global Investments' ETF management division. "The TIGER US Nasdaq 100 covered call (synthetic) ETF is gaining popularity among individual investors because it reduces the volatility of the Nasdaq 100 and pays out a certain amount of cash every month.”
