Mirae Asset's 'TIGER China Electric Vehicle SOLACTIVE ETF' Surpasses 3 Trillion KRW in Net Assets

[Asia Economy Reporter Minji Lee] Mirae Asset Global Investments announced on the 10th that the net assets of the ‘TIGER China Electric Vehicle SOLACTIVE ETF’ have surpassed 3 trillion KRW. This is the first time that an overseas stock-type ETF listed on the Korea Exchange has exceeded 3 trillion KRW in net assets. It is the largest among overseas stock-type ETFs listed domestically and the second largest among all ETFs.

According to the Korea Exchange, as of the closing price on the 9th, the net assets of the TIGER China Electric Vehicle SOLACTIVE ETF amounted to 3.1054 trillion KRW. It increased by 3.0477 trillion KRW this year, becoming the first overseas stock-type ETF to surpass 3 trillion KRW in net assets. Individual investors led the ETF’s growth, with net purchases of 622.7 billion KRW in November alone.

Launched in December last year, the TIGER China Electric Vehicle SOLACTIVE ETF invests in the rapidly expanding Chinese electric vehicle value chain. China is continuing policies at the government level to phase out internal combustion engine vehicles and expand the adoption of eco-friendly and electric vehicles. Additionally, Chinese electric vehicle and secondary battery companies already hold top-tier global positions and are continuously expanding their influence.

The ETF tracks the ‘SOLACTIVE China Electric Vehicle Index.’ This index includes 20 stocks of Chinese A-shares, Hang Seng Index, and Chinese electric vehicle and related supply chain companies listed on U.S. exchanges. Included in the index are ‘Ganfeng Lithium,’ the world’s third and China’s second largest lithium producer; ‘BYD,’ China’s number one electric vehicle company, the world’s second largest, and the second largest in China’s battery market; and ‘CATL,’ the largest Chinese electric vehicle battery producer and the world’s third largest company.

The TIGER China Electric Vehicle SOLACTIVE ETF introduced an ETF that has been verified overseas. The ETF tracks the same index as the ‘Global X China Electric Vehicle and Battery ETF,’ which was listed by Global X Hong Kong in January 2020. As of the end of November, the Global X China Electric Vehicle and Battery ETF’s net assets were 1.17 billion USD (1.377 trillion KRW), and its cumulative performance since listing reached 243%.

The TIGER China Electric Vehicle SOLACTIVE ETF can be used as a pension product from a long-term investment perspective to enjoy tax benefits. When traded within a pension account, transaction taxes are exempted, and capital gains and dividends are taxed at a low rate as pension income tax at the time of pension receipt.

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