Mirae Asset Global Investments, a subsidiary of Mirae Asset Financial Group, announced the listing of a monthly dividend exchange-traded fund (ETF) called 'TIGER Korea Dividend Dow Jones ETF' that diversifies investments in 30 domestic high-dividend blue-chip stocks on the 20th.
The underlying index for this product is the 'Dow Jones Korea Dividend 30 Index.' The high-dividend plus quality investment strategy of 'Schd (SCHD),' a leading global dividend ETF listed in the U.S., has been applied to the Korean stock market.
Mirae Asset Global Investments explained that it selects investment stocks based on 'dividend continuity,' having paid dividends for 10 consecutive years, 'dividend growth,' which has steadily increased dividends over the past 5 years, and a high level of 'dividend profitability.' It also focuses on the fundamentals of corporations, including financial soundness and growth.
Another characteristic of this product is that it diversifies the portfolio around sectors with low volatility, unlike existing high-dividend stocks. It has diversified sectors such as finance, consumer discretionary, industrials, and essential consumer goods, which are less affected by exports and the global economy, in contrast to the KOSPI 200 index, which is concentrated in information technology (IT). The weight of individual stocks is also limited to a maximum of 4%.
However, to align with the characteristics of the Korean market, some conditions, such as a market capitalization of 1 trillion won, an average daily trading value of 1 billion won, and no sector limits for the inclusion of 30 stocks, were relaxed compared to Schd. As of the 19th of this month, the main investment stocks include KB Financial (4.7%), LG Uplus (4.7%), KT&G (4.5%), Hana Financial Group (4.3%), and Woori Financial Group (4.2%).
Mirae Asset Global Investments noted that the advantage of the TIGER Korea Dividend Dow Jones ETF is its ability to defend portfolio performance through dividend revenue even if stock prices decline, allowing for stable long-term investments. The company said, 'As of the end of April this year, the ETF's underlying index, the Korea Dividend Dow Jones Index, has outperformed the KOSPI 200 Index by about 69% over the past five years.'
The TIGER Korea Dividend Dow Jones ETF plans to pay a fixed dividend per share monthly starting in July this year, around the middle of the month (as of the 15th). Jeong Ji-hyun, head of ETF management at Mirae Asset Global Investments, stated, 'Investing in dividend ETFs, which has been considered a U.S. market phenomenon, is establishing itself as a new investment trend in Korea,' and 'The appeal of dividend ETFs is expected to grow due to the government's value-up policies and corporations' shareholder return initiatives.'
Mirae Asset Global Investments announced it will hold an event to celebrate the product launch. From the 27th of this month to June 20th, it will present cultural gift certificates to some customers who meet the daily trading conditions for the ETF at Eugene Securities.