Mirae Asset's 'TIGER CD Geumri Investment KIS (Synthetic) ETF' Surpasses 1 Trillion KRW in Net Assets

[Asia Economy Reporter Hwang Yoon-joo] Mirae Asset Global Investments announced on the 15th that the net assets of the 'TIGER CD Interest Rate Investment KIS (Synthetic) ETF' have surpassed 1 trillion KRW.

According to the Korea Exchange, as of the closing price on the 14th, the net assets of the TIGER CD Interest Rate Investment KIS (Synthetic) ETF stood at 1.2151 trillion KRW, an increase of more than 969.2 billion KRW this year.

Listed in July 2020, the TIGER CD Interest Rate Investment KIS (Synthetic) ETF is the only domestic ETF that tracks the 91-day CD (Certificate of Deposit) yield, which is announced daily by the Korea Financial Investment Association. The 91-day CD interest rate generally offers higher yields compared to government bonds and Monetary Stabilization Bonds with similar maturities, or short-term financial products such as CMA and RP. As of September 14, the 91-day CD interest rate was 2.94%.

The ETF’s tracking index is the 'KIS CD Index (Total Return)'. This index consists of 10 CD issues issued by domestic commercial and specialized banks with remaining maturities between 60 and 120 days. The weighting is determined by an equal-weight method, and the index duration is approximately three months.

Kim Min, Head of Capital Market at Mirae Asset Global Investments ETF Management Division, said, "The TIGER CD Interest Rate Investment KIS (Synthetic) ETF is a product that allows investors to receive CD interest rates with an annual fee as low as 0.03%. Even after deducting ETF fees and expenses, it offers an interest rate more than 0.20% higher annually compared to KOFR, and due to the high liquidity characteristics of ETFs, it is suitable for investors to manage surplus funds within their stock accounts."

Meanwhile, a Certificate of Deposit (CD) is a financial product issued by banks with transferability granted to time deposit certificates, with maturities ranging from 30 days to one year. The 91-day CD announced interest rate is an indicator representing the average annual yield of 91-day CDs. The Korea Financial Investment Association calculates and announces this rate twice daily (at 11:30 AM and 4:00 PM) based on the bid yields of 91-day CDs issued by commercial banks, collected from 10 securities firms.

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