Surge in Demand for KODEX and TIGER Covered Call ETFs
Securities featuring tax exemptions, including Samsung Asset Management's KODEX 200 Target Weekly Covered Call ETF and Mirae Asset's TIGER US Dividend Dow Jones Target Daily Covered Call ETF, have captured heightened investor interest. The KODEX ETF skyrocketed its net assets to 2 trillion won within just 10 business days, leading personal purchases among 36 domestic covered call products. Targeting an annual 15% premium return alongside a 2% dividend, the ETF aims for a total annual return of 17%, spotlighting its tax-exempt status against foreign assets.
Mirae Asset's TIGER ETF has also crossed the 1 trillion won threshold, aiming for up to a 12% dividend yield through a blend with SCHD and a lower option writing ratio, allowing for potential stock price appreciation. By providing monthly distributions, the ETF ensures a stable cash flow. Enhanced by tax deferral benefits under the APA agreement, this product is particularly favorable for long-term investors looking to optimize their tax efficiency.
Related News
Mirae Asset 'TIGER U.S. Dividend Dow Jones Target Daily Covered Call' Surpasses 100 Billion KRW in Net Assets - Business PlusMirae Asset Management announced on the 13th that the net assets of the 'TIGER U.S. Dividend Dow Jones Target Daily Covered Call ETF' have surpassed 100 billion KRW. According to the Korea Exchange, as of the closing price on the 12th, the net assets of the TIGER U.S. Dividend Dow Jones Target Daily Covered Call ETF amounted to 125.7 billion KRW. Less than a month after its new listing on January 21, the net assets surpassed 100 billion KRW. During this period, the cumulative net buying amount by individuals was 77.3 billion KRW, ranking first among the total 36 covered call ETFs listed in Korea. The TIGER U.S. Dividend Dow Jones Target Daily Covered Call ETF is the first in Korea to track the representative U.S. dividend ETF 'SCHD'.
KODEX200 Target Weekly Covered Call, Net Assets Doubled in Just 10 Business Days - Business PlusSamsung Asset Management announced on the 13th that the net assets of the KODEX 200 Target Weekly Covered Call ETF have exceeded 200 billion KRW. This product is the first target covered call ETF launched in Korea using the KOSPI200 and on-exchange derivatives with tax-free benefits. It grew to 200 billion KRW in just 10 business days after surpassing 100 billion KRW in net assets at the end of January. Monthly dividend ETFs have rapidly grown since last year, focusing on tax-benefited pension accounts. While overseas equity and bond products have been popular among individual investors, the foreign tax credit was abolished starting January this year, reducing the tax-saving effect.
Monthly Dividend Investors Turn to Domestic Stocks, Buy KOSPI200 Covered Call - Smart Today|Smart Today = Reporter Kim Se-hyung| There is a significant inflow of capital into domestic stock-based covered call ETFs with tax exemption benefits. As volatility increased in the US stock market following the inauguration of President Donald Trump, these ETFs were chosen for investment in this year's robust domestic stock market. Samsung Asset Management's KODEX 200