Mirae Asset to list ‘NASDAQ 90% Tracking Monthly Distribution ETF’…”Addressing Covered Call Drawbacks”

Vice Chairman Lee Jun-yong: “End of Monthly Dividend ETF”,
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Lee Jun-yong, Vice Chairman of Mirae Asset Management [Photo by Song Eun-kyung],
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, ‘(Seoul=Yonhap News) By Song Eun-kyung = An exchange-traded fund (ETF) that tracks the Nasdaq 100 index, representing leading U.S. tech companies, and distributes a monthly dividend of around 15% annually will be listed on the 25th.’,
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, “Mirae Asset Management held a press conference on the 24th at the Mirae Asset Center1 Building in Jung-gu, Seoul, introducing the new ETF listed as ‘TIGER US Nasdaq 100+15% Premium Short-Term.'”,
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, “The ‘TIGER US Nasdaq 100+15% Premium Short-Term’ ETF uses a covered call strategy that involves buying underlying assets while selling call options on those assets.”,
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, ‘The key difference from conventional covered call products is the target premium strategy which reduces the call option sale portion to less than 10%, allowing the remaining 90% to track the Nasdaq 100 index.’,
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, “Typically, covered call ETFs allocate 100% to buying underlying assets and selling call options equally, meaning if the price of the underlying assets rises above a certain level, a portion of the potential gains is forfeited.”,
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, “‘TIGER US Nasdaq 100+15% Premium Short-Term’ ETF employs short-term options with 24-hour expiration to reduce the option sale portion to 10%, enabling it to closely follow the Nasdaq 100’s performance.”,
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, ‘Lee Kyung-jun, Head of Strategy ETF Management at Mirae Asset Management, expressed confidence in “closely tracking over 90% of market performance through the short-term option target premium strategy.”‘,
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, ‘Opting for physical assets instead of synthetic assets, the ETF reduces swap costs incurred in synthetic management and aligns stock and option underlying assets with the Nasdaq 100 to mitigate unnecessary risks. It also prohibits a 100% sale of options even when the option prices decline and the sale portion needs to be increased.’,
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, “The Nasdaq 100 underlying assets and options used in this new ETF align with the future of Asset Management’s exclusive ‘Nasdaq-100 Daily Covered Call Target Premium 15% Index (TR).'”,
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, ‘Lee Jun-yong, Vice Chairman of Mirae Asset Management, described the product as the “end of the line for monthly dividend ETFs” and emphasized the greater stability of their ETF compared to products of other asset managers.’,
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, ‘norae@yna.co.kr’,
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