Mirae Asset's TIGER KOFR Interest Rate Reactive ETF Surpasses 1 Trillion KRW in Net Assets

Mirae Asset Global Investments announced on the 11th that the net assets of the ‘TIGER KOFR Interest Rate Reactive (Synthetic) ETF’ have surpassed 1 trillion KRW. According to the Korea Exchange, as of the closing price on the 10th, the net assets of the TIGER KOFR Interest Rate Reactive (Synthetic) ETF stand at 1.4738 trillion KRW.

The ‘TIGER KOFR Interest Rate Reactive (Synthetic) ETF’ is an ETF that tracks the return of the Korean risk-free benchmark interest rate (KOFR) index, with interest accumulating daily. This product is gaining attention as an alternative to bank parking accounts. As of the end of April, net assets were around 624 billion KRW, which has doubled in three months.

Currently, the KOFR rate is 3.535% as of the 7th, maintaining a level higher than the historical average. Since the KOFR rate calculation began in 2018, the average KOFR rate has been around 1.5%. Therefore, the expected return from investing short-term funds in the TIGER KOFR Interest Rate Reactive (Synthetic) ETF is attractive compared to the historical average, and the net assets of this product are expected to increase.

Additionally, the annual fee for this ETF is set at 0.03%, which is lower than that of major bond and short-term financial product ETFs. Unlike bank deposits, it is easy to sell on the Korea Exchange market, allowing for quick liquidation when needed.

Trading this product through ISA (brokerage type), personal pension, or retirement pension (DC/IRP) accounts offers various tax benefits. When trading ETFs other than domestic equity ETFs in a general account, capital gains and dividends are taxed at 15.4% as dividend income, but using an ISA (brokerage type) account or pension account defers taxation and even provides tax credits.

Seungho Jeong, manager of the Global ETF Management Team at Mirae Asset Global Investments, said, “The TIGER KOFR Interest Rate Reactive (Synthetic) ETF is an appropriate ETF for managing standby funds because short-term interest rates are currently at an attractive level,” adding, “Another major advantage is that it can be invested as a 100% safe asset in retirement pension accounts such as DC and IRP.”

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