Complete Comparison of 3 Korea-Listed NASDAQ100 Covered Call ETFs - Tiger vs Kodex vs Rise
šÆ Why NASDAQ Covered Call ETFs?
While Korean stock covered call ETFs are popular for tax benefits, diversification is essential in monthly dividend ETF investing. Investing in S&P 500 and NASDAQ covered call ETFs alongside KOSPI 200 is advantageous for risk diversification and mid-to-long-term growth potential.
š Three ETFs Compared
| ETF | Manager | Listed | Total Fee |
|---|---|---|---|
| Tiger US NASDAQ100 Target Daily Covered Call | Mirae Asset | 2024.06.25 | 0.25% |
| Kodex US NASDAQ100 Daily Covered Call OTM | Samsung | 2024.07 | 0.25% |
| Rise US Tech100 Daily Fixed Covered Call | KB | 2024.08 | 0.25% |
All three ETFs offer NASDAQ100 upside participation + expected 15%+ annual monthly dividends.
š” Key Difference: Option Strategy
The biggest difference lies in their option strategies.
Tiger: Target Strategy (Flexible)
- Goal: Secure 15% annual option premium
- Option sell ratio: 0-100% (average 10-15%)
- NASDAQ upside participation: ~85-90%
- Feature: Auto-adjusts sell ratio based on volatility
Kodex: OTM Strategy (1% Out-of-Money)
- Option type: 1% OTM (strike 1% above current price)
- NASDAQ upside participation: 100% if daily gain under 1%
- Feature: No additional gains beyond 1% rise
Rise: Fixed Strategy (10% Fixed)
- Option sell ratio: Fixed at 10%
- NASDAQ upside participation: ~90%
- Feature: Consistent strategy, predictable
š Real Return Scenarios
Scenario 1: NASDAQ +0.7%
| ETF | Calculation | Return |
|---|---|---|
| Tiger | 0.7% Ć 85% | 0.595% |
| Kodex | Under 1%, full amount | 0.7% |
| Rise | 0.7% Ć 90% | 0.63% |
ā Kodex wins
Scenario 2: NASDAQ +2%
| ETF | Calculation | Return |
|---|---|---|
| Tiger | 2% Ć 85% | 1.7% |
| Kodex | Max 1% only | 1.0% |
| Rise | 2% Ć 90% | 1.8% |
ā Rise/Tiger wins
š„ 2025 Performance Reveals All
This year, performance differences became stark.
April 2025 Rally Example:
- April 9: NASDAQ100 surged 12% in one day
- Kodex: Maximum 1% gain
- Tiger/Rise: ~10%+ gains
When daily gains exceed 1% frequently, Tiger and Rise dramatically outperform.
š° Distribution Comparison
Tiger
- Target distribution: 15% annually
- Stable ~1.5% monthly payouts
- Funded by 15% target option sales
Kodex
- Distribution cap: 20% annually
- Excess reinvested
- ~1.5-1.7% monthly
Rise
- Distribution cap: Not specified
- Most option premium distributed
- High volatility months: 3%+ monthly possible (36% annualized)
- Low volatility months: 1.5-1.8% monthly
ā ļø Investment Considerations
- No absolute winner: Advantages shift with market conditions
- During volatile swings: Tiger/Rise favorable
- During gradual uptrends: Kodex favorable
- Volatility and distributions: Rise distributions vary with volatility
š Conclusion: How to Invest?
Don't pick just one. We recommend flexibly utilizing at least 2 ETFs based on market conditions.
- Volatile swing markets ā Increase Tiger/Rise weight
- Gradual trend markets ā Increase Kodex weight
Monthly dividends aren't just about tax savings. Build a portfolio considering risk diversification and long-term growth. š