Mirae Asset Management, 'TIGER CD Interest Rate Investment KIS ETF' Net Assets Surpass 40 Trillion KRW Event

No Losses Despite Benefiting from High Interest Rates

[Asia Economy Reporter Kwangho Lee] Mirae Asset Global Investments announced on the 12th that it will hold a quiz event to celebrate the net assets of the ‘TIGER CD Interest Rate Investment KIS (Synthetic) ETF’ surpassing 4 trillion KRW.

According to the Korea Exchange, as of the closing price on the 11th, the net assets of the TIGER CD Interest Rate Investment KIS (Synthetic) ETF amounted to 4.0346 trillion KRW. The net assets of this ETF were around 250 billion KRW at the end of 2021, but due to the sharp rise in CD interest rates, it attracted significant investor interest and increased to 4 trillion KRW in just over a year. This is the largest net asset size among domestic listed interest rate ETFs and ranks second among all ETFs.

The TIGER CD Interest Rate Investment KIS (Synthetic) ETF is the first domestic interest rate ETF that tracks the 91-day CD (Certificate of Deposit) yield, which is announced daily by the Korea Financial Investment Association. Interest is compounded daily, and unlike bank deposits, it can be easily liquidated, making it notable as a ‘parking-type ETF’ that can replace bank parking accounts. Additionally, when traded through ISA (Intermediary), personal pension, or retirement pension (DC/IRP) accounts, taxation is deferred until withdrawal, and tax credits can be received.

The event celebrating the net assets surpassing 4 trillion KRW will be held from January 12 to 18 on the ‘TIGER ETF website’ and the ‘TIGER ETF Kakao Plus Friend channel.’ Among those who answer the quiz related to the TIGER CD Interest Rate Investment KIS (Synthetic) ETF correctly, 500 people will be selected by lottery to receive one Starbucks gifticon each.

Namho Kim, Team Leader of the Global ETF Management Division at Mirae Asset Global Investments, said, “The TIGER CD Interest Rate Investment KIS (Synthetic) ETF is a product characterized by benefiting from high interest rates without incurring losses,” adding, “Unlike typical parking accounts or time deposits, it also enjoys the effect of compound interest, making it highly competitive.”

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. It generally offers higher interest rates compared to government bonds and monetary stabilization bonds with similar remaining maturities, or short-term financial products such as CMA and RP.

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