Mirae Asset Global Investments' TIGER U.S. Dividend Dow Jones ETF has surpassed KRW 1 trillion (approximately US$720 million) in net purchases by South Korean retail investors this year, reflecting growing demand for dividend-focused exchange-traded funds (ETFs) amid volatile global markets.
According to the Korea Exchange, cumulative net buying by individual investors in the TIGER U.S. Dividend Dow Jones ETF reached KRW 1.002 trillion as of Aug. 4. Since its launch, cumulative retail net purchases have climbed to KRW 2.57 trillion, while assets under management have expanded to KRW 4.16 trillion.
The ETF has attracted consistent inflows rather than one-time investment spikes. From January through July, monthly retail net buying exceeded KRW 100 billion for seven consecutive months, with an average monthly inflow of approximately KRW 140.8 billion.
The steady demand continued even during periods of heightened market volatility, including March, when global equity markets experienced increased uncertainty. Industry analysts say the trend highlights growing investor preference for long-term income-generating investment products.
The TIGER U.S. Dividend Dow Jones ETF tracks the same underlying index as the Schwab U.S. Dividend Equity ETF (SCHD), one of the most widely followed dividend ETFs in the United States. The index consists of 100 U.S. companies selected based on dividend payment history, financial strength and dividend growth potential.
The ETF distributes dividends every month, making it particularly attractive to retirement pension and individual pension investors seeking stable cash flow alongside long-term capital appreciation.
Among four South Korean ETFs tracking the Dow Jones U.S. Dividend Index, approximately 80% of retail net buying this year has flowed into the TIGER U.S. Dividend Dow Jones ETF, according to industry data.
Low investment costs have also contributed to the fund's popularity. Based on data from the Korea Financial Investment Association, the ETF's total expense ratio stood at 0.1048% annually at the end of June, offering cost efficiency for long-term investors.
Demand for dividend-focused ETFs has continued to rise in South Korea as investors seek stable income streams in a higher interest rate environment. Market participants say dividend ETFs are increasingly being used as core portfolio holdings by pension investors and individuals preparing for retirement.
"Surpassing KRW 1 trillion in retail net buying this year demonstrates continued investor confidence in long-term investment products despite market volatility," said Kim Sang-yul, Head of Global ETF Management at Mirae Asset Global Investments. "We will continue strengthening the competitiveness of our dividend ETFs to meet growing demand from long-term investors seeking both stable income and long-term growth."
