Mirae Asset "TIGER CD Interest Rate Investment KIS (Synthetic) ETF Net Assets Surpass 7 Trillion Won"

Mirae Asset Global Investments announced on the 20th that the net assets of the ‘TIGER CD Interest Rate Investment KIS (Synthetic) ETF’ have surpassed 7 trillion KRW. According to the Korea Exchange on the previous day, the net assets of this ETF based on the closing price were 7.0737 trillion KRW. It is currently the only domestic ETF to exceed 7 trillion KRW in net assets.

The TIGER CD Interest Rate Investment KIS (Synthetic) ETF surpassed 6.3 trillion KRW in net assets last month, becoming the ETF with the highest net assets among all ETFs listed on the Korea Exchange. It was the first time a rate-type ETF took the top spot in the domestic ETF market, which is mainly led by equity-type ETFs, and it was evaluated as bringing a new change to the ETF market at that time. Since then, as the CD interest rate maintained an attractive level amid the high interest rate environment, individual buying demand has strengthened.

Additionally, as the first rate-type ETF in Korea, it tracks the 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. This is why it is attracting attention as a ‘parking-type ETF’ that can replace bank parking accounts. It is suitable for pension investors. When traded through ISA (Intermediary type), personal pension, or retirement pension (DC/IRP) accounts, taxation is deferred until withdrawal, and tax credits can also be received.

Seungho Jeong, manager of the ETF management division at Mirae Asset Global Investments, said, “Interest in rate-type ETFs will continue as the high interest rate environment persists both domestically and internationally,” adding, “It is an investment tool that can effectively utilize idle funds.”

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