'TIGER US Philadelphia Semiconductor NASDAQ ETF' Net Assets Surpass 100 Billion KRW

Congratulatory message for the listing of 'TIGER US Philadelphia Semiconductor NASDAQ ETF' displayed at the NASDAQ MarketSite in Times Square, New York, USA / Photo by Mirae Asset Management

[Asia Economy Reporter Minji Lee] Mirae Asset Global Investments announced on the 21st that the ‘TIGER US Philadelphia Semiconductor Nasdaq ETF’ surpassed 100 billion KRW in net assets within 7 trading days since its listing on the 9th. Due to the global semiconductor supply shortage, investor interest has concentrated, with individual net purchases accounting for over 90% of the total.

This ETF, which invests in US semiconductor-related companies, attracted market attention as the initial setup volume of 14 billion KRW held by liquidity providers was fully sold within one hour of the market opening on the listing day. Semiconductors are incorporated into the value chain of key themes of the 4th Industrial Revolution such as artificial intelligence, electric vehicles, and autonomous driving. Recently, with digital transformation, new infrastructure and digital devices have emerged, increasing semiconductor consumption as well.

The US is pursuing an ‘America First’ policy in response to China’s semiconductor rise, and in June last year, proposed a bill to support semiconductor research and development (R&D) with 25 billion USD over five years. The US government is expected to expand support measures to maintain technological leadership and national security.

The TIGER US Philadelphia Semiconductor Nasdaq ETF tracks the ‘PHLX Semiconductor Sector INDEX.’ The index consists of the top 30 companies by market capitalization engaged in semiconductor design, manufacturing, and sales, listed on the US Nasdaq and New York Stock Exchange. The index includes ‘Qualcomm,’ a leading communication chip company that developed 1st and 2nd generation mobile communication technology CDMA; ‘Intel,’ a comprehensive semiconductor company with direct semiconductor design and production capabilities focusing on CPUs; and ‘NVIDIA,’ the top GPU company specializing in graphics card design.

When trading overseas stock ETFs in a general account, capital gains and dividends are taxed at a 15.4% dividend income tax rate. However, if traded through a pension account, taxation on capital gains and dividends is deferred and subject to a lower separate taxation rate of 3.3% to 5.5% pension income tax upon pension receipt. Additionally, due to the nature of ETFs, the 0.23% transaction tax is exempted, allowing for various tax-saving benefits when trading ETFs through pension accounts.

Kwon Oh-sung, Head of ETF Marketing Division at Mirae Asset Global Investments, said, “As interest in finance increases, the demand for products is becoming more diverse,” adding, “Mirae Asset will continue to strive to supply excellent products to the market, ranging from various sector ETFs to representative index types.”

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