Mirae Asset's Bond-Type 'TIGER ETF' Attracts Large Inflows Since Early Year

The Longest Duration in Korea 'TIGER Gukgoche 30-Year Strip Active ETF'
Top Individual Net Purchase Long-Term Government Bond ETF

Mirae Asset Global Investments recently announced on the 21st that as bond investments have gained attention, the net assets of bond-type ‘TIGER ETFs’ have significantly increased.

According to the Korea Exchange, as of the closing price on the 20th, the net assets of the ‘TIGER 24-10 Corporate Bond (A+ and above) Active ETF (447820)’ amount to 504 billion KRW. This ETF primarily invests in corporate bonds rated A+ or higher with a remaining maturity of about 2 years and is a maturity-matching type ETF. It features the characteristic that even if market interest rates rise, holding until maturity can realize the targeted yield. Since its listing in November last year, it has attracted explosive interest and surpassed 500 billion KRW in net assets.

The ‘TIGER 24-10 Corporate Bond (A+ and above) Active ETF’ is a flagship product of Mirae Asset Global Investments’ ‘TIGER Corporate Bond (A+ and above) Active ETF’ series. Corporate bonds have maintained a high interest rate level, and strong buying momentum has continued since the beginning of the year. The net asset size of this ETF, which was about 160 billion KRW at the end of last year, has more than tripled in just over four months.

Among the representative bond-type TIGER ETFs, the 'TIGER 30-Year Treasury Strip Active ETF (451530)' has also recently gained great popularity among individual investors. Interest in long-term bond investments is increasing due to interest rate fluctuations, and as of the 20th since its listing, the net purchase amount by individuals for this ETF has reached 40.3 billion KRW. This is the largest scale among long-term government bond ETFs listed domestically.

Amid this buying momentum, the 'TIGER 30-Year Treasury Strip Active ETF,' which was listed in February, recently surpassed 70 billion KRW in net assets. This ETF attracted market attention from the time of listing due to having the longest duration (maturity) domestically. By separating principal and interest through strips for the first time in Korea, it significantly extends duration, making it the longest-duration ultra-long-term investment product among domestic bond ETFs. While the duration of a general 30-year government bond is around 18 to 19 years, the duration of a 30-year strip is about 28 to 29 years, approximately 50% longer.

Bond-type ‘TIGER ETFs’ also offer various tax benefits when invested through pension accounts. When traded through ISA (Intermediary type), personal pension, or retirement pension (DC/IRP) accounts, taxation is deferred until withdrawal, and tax credits can be received. Additionally, unlike individual bond investments that generally require buying and selling through securities firms, bond-type ETFs can be easily bought and sold like stocks.

A representative from Mirae Asset Global Investments stated, “The current interest rate level remains attractive compared to the past, and with expectations of a gradual decline in the future, the popularity of bond-type ETFs continues. We plan to expand the bond-type TIGER ETF lineup to broaden the choices for investors who want to invest in bonds.”

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