Mirae Asset's Two TIGER ETFs Tracking Major US Indexes Surpass KRW 1.5 Trillion in Net Assets

Congratulations on TIGER US Nasdaq 100 ETF surpassing 1 trillion KRW in net assets, as displayed on the Nasdaq MarketSite in Times Square, New York, USA.

[Asia Economy Reporter Minji Lee] Mirae Asset Global Investments announced on the 26th that the combined net assets of two TIGER ETFs tracking major U.S. indices have surpassed 1.5 trillion KRW. The ‘TIGER U.S. NASDAQ100 ETF’ exceeded 1 trillion KRW in net assets, while the ‘TIGER U.S. S&P500 ETF’ surpassed 500 billion KRW.

According to the Korea Exchange, as of the closing price on the 25th, the net assets of the TIGER U.S. NASDAQ100 ETF stood at 1.0936 trillion KRW. This ETF increased by 512 billion KRW this year, becoming the first overseas index-tracking product listed domestically to exceed 1 trillion KRW in net assets. It is the second among overseas equity ETFs after the ‘TIGER China Electric Vehicle SOLACTIVE ETF.’ The TIGER U.S. S&P500 ETF’s net assets reached 558.7 billion KRW, increasing by 443.4 billion KRW this year, and became the first domestically listed S&P500 index-tracking ETF to surpass 500 billion KRW within about a year of listing.

The TIGER U.S. NASDAQ100 ETF invests in 100 representative companies leading the new growth industries in the U.S. It tracks the ‘NASDAQ100’ index, which focuses on emerging U.S. venture and growth stocks, and is composed mainly of IT, consumer goods, and healthcare sectors expected to benefit from the Fourth Industrial Revolution. The TIGER U.S. S&P500 ETF tracks the ‘S&P500,’ one of the three major U.S. indices, which accounts for 80% of the total U.S. market capitalization.

Both ETFs are the largest among domestic ETFs tracking the same indices. Currently, the Korea Exchange lists five ETFs each tracking the NASDAQ100 and S&P500 indices. Not only in size but also in trading volume, they hold an advantage over competitors. As of August, the average daily trading value of the TIGER U.S. NASDAQ100 ETF is approximately 18 billion KRW, and the TIGER U.S. S&P500 ETF is about 7 billion KRW.

The TIGER U.S. NASDAQ100 ETF and TIGER U.S. S&P500 ETF track the same indices as the U.S.-listed ‘Invesco QQQ ETF (QQQ ETF)’ and ‘SPDR S&P500 ETF (SPY ETF),’ respectively, and are open to currency exchange, showing similar performance. However, the TIGER ETFs listed domestically do not require currency exchange and allow real-time intraday trading, making them popular. They also have the advantage of lower fees and costs. The total annual expense ratio of TIGER ETFs is 0.07%, lower than QQQ ETF’s 0.20% and SPY ETF’s 0.09%. Costs related to currency exchange, transaction fees, and selling pressure are also more favorable for investors with TIGER ETFs.

Kwon Oh-sung, Executive Director of the ETF Marketing Division at Mirae Asset Global Investments, said, “The U.S. leads the global stock market and pioneers the Fourth Industrial Revolution. Investors can easily invest in representative U.S. indices through TIGER ETFs,” adding, “Mirae Asset will continue to discover competitive products and provide them to investors.”

The U.S. major index TIGER ETFs can be used as pension products from a long-term investment perspective to enjoy tax benefits. ETFs are exempt from transaction tax, and when traded within pension accounts, capital gains and dividends are taxed at a low rate as pension income tax upon pension receipt.

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