Mirae Asset K-New Deal ETF Surpasses 1 Trillion KRW in Net Assets

The Secondary Battery Sector Ranks First in Returns... 62.9% Since Listing

[Asia Economy Reporter Minwoo Lee] Mirae Asset Global Investments' K-New Deal Exchange Traded Fund (ETF) has surpassed 1 trillion KRW in net assets.

Mirae Asset Global Investments announced on the 13th that the net assets of the 'TIGER K-New Deal ETF Series,' which was listed on October 7 last year, reached 1.006 trillion KRW based on the previous day's closing price.

This ETF series consists of five types: '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.' Based on the previous day's closing price, their net assets are 349.1 billion KRW, 486.7 billion KRW, 76.4 billion KRW, 51.1 billion KRW, and 37.3 billion KRW, respectively.

This product group recorded the largest scale in the domestic ETF market in terms of individual purchase amount from the day of listing. The net purchase amount by individuals on the previous day was about 600 billion KRW combined for the five ETFs. The average daily trading volumes are 1.25 million shares, 1.19 million shares, 370,000 shares, 290,000 shares, and 240,000 shares, respectively. Since inception, the returns have been recorded in the order of 'TIGER KRX Secondary Battery K-New Deal ETF (62.86%),' 'TIGER KRX Bio K-New Deal ETF (28.03%),' 'TIGER KRX BBIG K-New Deal ETF (27.66%),' 'TIGER KRX Game K-New Deal ETF (9.08%),' and 'TIGER KRX Internet K-New Deal ETF (7.51%).'

The underlying indices are the 'KRX BBIG K-New Deal Composite Index' and industry-specific indices. The 'KRX BBIG K-New Deal Index' is composed of 12 stocks, with the top three market capitalization stocks each from the battery, bio, internet, and game industries, equally weighted. The 'KRX Secondary Battery, Bio, Internet, Game K-New Deal Indices' each consist of 10 stocks, where the top three stocks equally account for 75%, and the remaining seven stocks are weighted by free-float market capitalization at 25%. Unlike the traditional method, this approach increases the weighting of top market capitalization stocks, allowing focused investment in leading stocks of future growth industries.

To minimize tracking error, the ETFs are managed by fully replicating the underlying indices. As private New Deal funds, they may incur losses similar to general equity ETFs due to investment risks.

Meanwhile, investing through pension accounts allows for a long-term perspective. Upon pension receipt, a low-rate separate taxation of 3.3% to 5.5% applies. The attractiveness of using pension products has increased due to the 20% capital gains tax on stocks imposed from 2023. Due to the nature of ETFs, the 0.25% transaction tax is also exempted.

Choi Kyung-joo, Vice Chairman of Mirae Asset Global Investments, said, "The TIGER K-New Deal ETF surpassing 1 trillion KRW in just three months after listing was the result of wise investors reading the changed market paradigm," adding, "Mirae Asset will continue to strive to provide quality products that customers can easily invest in when needed."

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