Mirae Asset Launches Two New TIGER ETFs for U.S. Bond Investment

Mirae Asset Global Investments announced on the 31st that it will newly list two ETFs on the Korea Exchange: ‘TIGER U.S. Treasury 30-Year Strip Active (Synthetic H) (458250)’ and ‘TIGER U.S. Investment Grade Corporate Bond Active (H) (458260).’

‘TIGER U.S. Treasury 30-Year Strip Active (Synthetic H)’ is a strip bond-type ETF that invests in U.S. Treasury bonds with a remaining maturity of over 25 years. A strip bond-type ETF separates the principal and interest of bonds to significantly extend duration. While the duration of a conventional 30-year bond is about 17 years, the duration of a 30-year strip bond is approximately 29 years, allowing investors to benefit from long-term bond investment effects. Following the launch of Korea’s first strip bond investment ETF, ‘TIGER Treasury 30-Year Strip Active,’ in February, Mirae Asset Global Investments introduced ‘TIGER U.S. Treasury 30-Year Strip Active (Synthetic H)’ to meet the high interest in long-term bond investments by investing in U.S. strip bonds.

‘TIGER U.S. Investment Grade Corporate Bond Active (H)’ invests in corporate bonds of leading U.S. companies such as AT&T, Amazon, and Apple. This ETF uses the same benchmark index as the offshore ETF listed in the U.S., ‘LQD (iShares iBoxx $ Investment Grade Corporate Bond).’ Since its listing in 2002, LQD has demonstrated excellent performance in total assets, outstanding shares, and trading volume. Unlike investing in LQD, ‘TIGER U.S. Investment Grade Corporate Bond Active (H)’ is easily accessible domestically and can be traded in real-time during Korean stock market hours. Since it is invested in Korean won, there are no currency exchange costs, and currency hedging helps reduce exchange rate volatility. Notably, it is a monthly dividend-paying ETF, allowing investors to expect steady income returns.

When investing in these two TIGER ETFs through pension accounts, investors can also enjoy various tax benefits. Trading through ISA (brokerage type), personal pension, or retirement pension (DC/IRP) accounts defers taxation until withdrawal and offers tax credits.

Mirae Asset Global Investments is also conducting a new listing event for customers trading these two ETFs. From June 1 to 23, customers who meet the trading conditions for the target ETFs at Eugene Investment & Securities and SK Securities will be entered into a draw to receive cultural gift certificates. Detailed event information can be found on each securities firm’s website.

Jung Seung-ho, manager of the ETF Management Division at Mirae Asset Global Investments, stated, “With expectations that the U.S. Federal Reserve’s rate hike trend may conclude in the first half of the year, bond prices are likely to rise in a falling interest rate environment. As investor interest in bond investment increases, we will strive to introduce TIGER ETFs that can benefit from interest rate changes.”

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