Korea's Mirae Asset to launch new ETF tracking same NOBL dividend index

[Photo by MK DB]

South Korea’s Mirae Asset Global Investments will list a new exchange-traded fund (ETF) tracking the same index composed of a group of the companies with high dividend payment on NOBL ProShares S&P 500 Dividend Aristocrats ETF outperforming S&P index.

NOBL ETF with 12 trillion won ($9.32 billion) under management is popular among the U.S. and Western investors as they can expect stable yields because the ETF includes dividend aristocrats with increasing dividend payouts for more than 25 years. As Mirae Asset’s new product will track the same index as NOBL ETF, it is welcome news to Korean investors who have difficulty investing in NOBL listed in the US market due to a time gap and transaction charges.

The new ETF, dubbed TIGER U.S. S&P 500 Dividend Aristocrats ETF that will be listed next Tuesday, will allocate funds to the same 40 firms with solid fundamentals selected from NOBL S&P Dividend Aristocrats Index, such as 3M, Caterpillar, and Chevron.

Apart from stable dividend income, investors can expect high stock yields as those dividend aristocrats hold strong fundamentals. NOBL posted an 8.56 percent fall in investment return on Wednesday, versus S&P500’s 17.96 percent decline. In addition, as dividend aristocrats hold pricing power, investors can expect stable results even in hyperinflation.

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