Mirae Asset Lowers Nasdaq and S&P 500 ETF Management Fees to the Lowest in Korea

TIGER US Nasdaq 100 ETF, TIGER US S&P 500 ETF with an Annual Fee of 0.07%

[Asia Economy Reporter Minwoo Lee] Mirae Asset Global Investments is lowering the management fees of exchange-traded fund (ETF) products that track the US Nasdaq 100 Index and the S&P 500 Index to the lowest level in Korea.

Mirae Asset Global Investments announced on the 6th that the total fees for the 'TIGER US Nasdaq 100 ETF' and 'TIGER US S&P 500 ETF' will be reduced to 0.07% per annum starting from the 12th. This is the lowest level among ETFs tracking the same indices listed domestically. Previously, the fees were 0.49% and 0.30%, respectively. The aim is to expand the base of ETF investors and increase their use as long-term portfolios such as pensions.

The underlying index of the 'TIGER US Nasdaq 100 ETF' is the US Nasdaq 100 Index, which represents the US technology stock market. It consists of 100 representative stocks from sectors such as computer hardware and software, telecommunications, wholesale and retail trade, and biotechnology listed on the Nasdaq market. It includes companies representing new growth industries, from advanced technology-related stocks like Microsoft (MS), Alphabet (Google's parent company), and Tesla to venture companies.

The 'TIGER US S&P 500 ETF' invests in the top 500 stocks by market capitalization in the US stock market. It invests in the top 500 stocks by market capitalization listed on the stock market. The underlying index is the S&P 500, which includes large-cap stocks accounting for about 80% of the total market capitalization. Both ETFs are managed using a full replication strategy to closely track the volatility of the underlying index, and no separate currency hedging is conducted.

Mirae Asset Global Investments has steadily lowered fees for ETFs tracking major market indices. The 'TIGER 200 ETF,' which tracks the KOSPI 200 Index, is a representative example. From 2010 to 2016, its fee was reduced four times from 0.46% per annum to 0.05% per annum. In 2016, the total fee for the 'TIGER Leverage and Inverse ETF' was lowered from 0.59% to 0.09% per annum. In the same year, the 'TIGER KOSDAQ 150 ETF,' related to the KOSDAQ 150 Index, was reduced from 0.30% to 0.19% per annum, and the 'TIGER KOSDAQ 150 Leverage and Inverse ETF' was lowered from 0.59% to 0.32% per annum.

Details regarding the fee reduction will be disclosed through the Korea Exchange and the Korea Financial Investment Association on the 12th. Kwon Oh-sung, Managing Director of the ETF Marketing Division at Mirae Asset Global Investments, said, "The low-fee policy for ETFs tracking major market indices is a global trend, already being pursued by many global ETF managers including BlackRock and Vanguard, the world's largest asset managers. TIGER ETFs will also continue to pursue the industry's lowest fee policy for representative index products from a global investment perspective to ensure that investors directly benefit."

This content was produced with the assistance of AI translation services.