Mirae Asset Global Investments said Tuesday that its TIGER US Dividend Dow Jones Target Covered Call No. 2 exchange-traded fund (ETF) has posted a year-to-date return of 20.25%.
According to the Korea Exchange (KRX), the ETF recorded a 20.25% return year-to-date based on the previous day's closing price. The performance is approximately 25 percentage points higher than the S&P 500 index, which fell 5.05% over the same period. The firm noted that growing volatility in portfolios concentrated in artificial intelligence (AI)-focused tech stocks has highlighted the stronger performance of dividend-oriented portfolios.
The product invests in the same stocks as the US-listed Schwab US Dividend Equity ETF (SCHD) and combines a target covered call strategy as a monthly distribution ETF. It invests in 100 high-quality dividend stocks with dividend growth potential and strong fundamentals, while employing a covered call strategy based on monthly call option selling to provide downside protection. Key investment sectors include consumer staples (19.59%), healthcare (18.61%), energy (17.26%), industrials (11.40%) and IT (10.91%), featuring well-diversified exposure across traditional dividend sectors.
The TIGER US Dividend Dow Jones Target Covered Call No. 2 ETF has recorded an annual distribution rate of 10% since its listing in 2023. According to Mirae Asset Global Investments, the product's annual distribution rate was 10.62% in 2024 and 10.58% in 2025, building a consistent track record of distribution payments. The most recently paid March distribution was 94 won, up approximately 7% from 88 won in the same month a year earlier.
"The TIGER US Dividend Dow Jones Target Covered Call No. 2 ETF combines a covered call strategy with a US dividend stock portfolio, offering an expected annual distribution of around 10%," said Jung Eui-hyun, head of the ETF management division at Mirae Asset Global Investments. "In an environment of rising market volatility, it can serve as an investment alternative that considers both distributions and returns."
