Individual Investors Flock to Mirae Asset’s Dividend Covered Call ETF, with Net Purchases of 2.4 Trillion Won This Year

[Financial News] Individual investors have poured more than 2.4 trillion won into Mirae Asset Global Investments Co., Ltd.’s TIGER Dividend Covered Call Active ETF since the start of the year. The strong demand is believed to have been supported by returns of more than 40% since the beginning of the year and a distribution structure that offers tax-exempt payments.
According to Mirae Asset Global Investments Co., Ltd. on the 27th, individual investors’ net purchases of the exchange-traded fund (ETF) totaled 2.4044 trillion won year to date, based on Korea Exchange figures. Net purchases averaged 240.5 billion won per month, starting with 87.4 billion won in January. Cumulative net purchases first exceeded 2 trillion won at the end of September, and a further 291 billion won flowed in this month.
The product uses an active covered-call strategy based on the KOSPI 200, investing in dividend-growth stocks while adjusting the proportion of options sold and their strike prices in line with market conditions. It aims to capture as much of the upside as possible when stock prices rise, and to generate returns from option premiums when the market moves sideways or declines.
Its performance has also been solid. Its year-to-date return was 40.29%, the highest among covered-call ETFs listed in South Korea, and its cumulative return since listing reached 141.88%. In the second half of this year, it has continued its special distribution policy, which reflects its first-half management performance, paying monthly distributions of around 2%.
Another feature is that a substantial portion of its distributions is tax-exempt. Premium income from options listed in South Korea is not subject to the 15.4% dividend income tax and is not included in the calculation of comprehensive tax on financial income or health insurance premiums. About 97% of this ETF’s distributions are tax-exempt. This month’s distribution will be paid to investors who purchase the product by the 28th.
Lee Jeong-hwan, head of the Strategic ETF Management Division at Mirae Asset Global Investments Co., Ltd., said, “Covered-call ETFs should be evaluated based on total returns, including distributions, rather than distribution rates alone,” adding, “As they combine solid management performance with a tax-exempt distribution structure, they can provide tangible benefits to investors.”

[email protected] Lee Jeong-hwa Reporter