Mirae Asset Global Investments Changes Calculation Standards and Lowers Fees for TIGER ETF Underlying Index

[Asia Economy Reporter Hwang Yoon-joo] Mirae Asset Global Investments announced on the 27th that it will change the calculation criteria of the underlying index for the 'TIGER CD Interest Rate Investment KIS (Synthetic) ETF' and reduce the fees for the 'TIGER US Dollar Futures Leverage ETF' and 'TIGER US Dollar Futures Inverse 2X ETF.'

The TIGER CD Interest Rate Investment KIS (Synthetic) ETF is the only domestic ETF that tracks the yield of 91-day CDs (Negotiable Certificates of Deposit). The ETF's underlying index is the 'KIS CD Interest Rate Investment' index, and Mirae Asset Global Investments is changing the calculation criteria of the underlying index to improve index continuity and stability.

Before the change, the KIS CD Interest Rate Investment index was calculated twice daily based on the 91-day CD rates announced by the Korea Financial Investment Association in the morning and afternoon. After the change, the index will be calculated using only the afternoon announced rate. Additionally, a price calculation standard has been added to prepare for cases where it is difficult to obtain the CD91 rate data announced by the Korea Financial Investment Association.

With the change in the underlying index calculation criteria, the yield stability of the TIGER CD Interest Rate Investment KIS (Synthetic) ETF will improve. This ETF incorporates new 91-day CDs daily, so there is no yield fluctuation due to interest rate changes, allowing investors to earn a yield equivalent to a 91-day deposit even if held for just one day.

Kim Nam-ho, team leader of the ETF Management Division at Mirae Asset Global Investments, said, "As of October 25, the 91-day CD rate is 3.93%, which is higher not only than CMA but also than the 3.123% Korea Overnight Risk-Free Rate (KOFR). The TIGER CD Interest Rate Investment KIS (Synthetic) ETF is highly competitive among short-term interest rate products and is suitable for use as a parking account because it can manage assets stably amid ongoing interest rate hikes."

Additionally, Mirae Asset Global Investments will reduce the total fees for the TIGER US Dollar Futures Leverage ETF and TIGER US Dollar Futures Inverse 2X ETF from 0.47% per annum to 0.05% per annum. The management fee will be reduced from 0.40% per annum to 0.029% per annum, the designated participant fee from 0.03% per annum to 0.001% per annum, the trustee fee from 0.02% per annum to 0.01% per annum, and the general administrative company fee from 0.02% per annum to 0.01% per annum. The TIGER US Dollar Futures Leverage ETF and TIGER US Dollar Futures Inverse 2X ETF invest in the won-dollar exchange rate, tracking the daily fluctuation rate of the 'US Dollar Futures Index' announced by the Korea Exchange at 2 times and -2 times, respectively.

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