Mirae Asset K-New Deal ETF Approaches 800 Billion KRW in Net Assets After 2 Months

Bio Sector ETF Posts Highest Return at 27%

[Asia Economy Reporter Minwoo Lee] Mirae Asset Global Investments' K-New Deal related exchange-traded funds (ETFs) are on the verge of surpassing 800 billion KRW in net assets just two months after listing.

Mirae Asset Global Investments announced on the 11th that the net assets of the 'TIGER K-New Deal ETF Series,' which focuses on 'BBIG' companies such as battery, bio, internet, and gaming sectors, recorded 794.3 billion KRW as of the previous day's closing price. This marks nearly 800 billion KRW achieved within two months since its listing on October 7.

This series consists of five ETFs: ‘TIGER KRX BBIG K-New Deal ETF,’ ‘TIGER KRX Secondary Battery K-New Deal ETF,’ ‘TIGER KRX Bio K-New Deal ETF,’ ‘TIGER KRX Internet K-New Deal ETF,’ and ‘TIGER KRX Game K-New Deal ETF.’ As of the previous day's closing price, their net assets were 306.6 billion KRW, 239.3 billion KRW, 68.1 billion KRW, 54.9 billion KRW, and 35.4 billion KRW, respectively. Since listing, their average daily trading volumes were 1.3 million shares, 840,000 shares, 370,000 shares, 360,000 shares, and 310,000 shares, respectively, the highest among K-New Deal ETFs in the industry.

The highest return was from the ‘TIGER KRX Bio K-New Deal ETF’ at 27.15%. It was followed by the 'TIGER KRX Secondary Battery K-New Deal ETF (24.52%)', 'TIGER KRX BBIG K-New Deal ETF (12.15%)', 'TIGER KRX Game K-New Deal ETF (2.27%)', and 'TIGER KRX Internet K-New Deal ETF (-4.33%)'.

The underlying indices for these products are the 'KRX BBIG K-New Deal Composite Index' and four industry-specific indices. The KRX BBIG K-New Deal Index is composed of 12 stocks, selecting the top three by market capitalization from battery, bio, internet, and gaming industries, equally weighted.

The KRX Secondary Battery, Bio, Internet, and Game K-New Deal indices each consist of 10 stocks, with the top three stocks equally weighted at 75% and the remaining seven stocks weighted by free-float market capitalization at 25%. Unlike previous methods, the BBIG industry-specific indices increase the weighting of top market capitalization stocks to focus investment on leading stocks in future growth industries. To minimize tracking error, the funds are managed by fully replicating the underlying indices.

A Mirae Asset Global Investments representative explained, "The TIGER K-New Deal ETF series can be approached with a long-term perspective when invested through pension accounts, and upon pension receipt, a low separate taxation rate of 3.3% to 5.5% applies. Due to the 20% capital gains tax on stocks imposed from 2023, the attractiveness of using these as pension products has increased. Additionally, as ETFs are exempt from the 0.25% transaction tax, investors can enjoy tax-saving benefits in various ways."

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