Mirae Asset Lists ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active’

Mirae Asset Global Investments announced on the 6th that it will newly list the ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) Exchange-Traded Fund (ETF)’ on the Korea Exchange.

The ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF’ is the first domestic interest rate-type ETF investing in the 1-year CD (Negotiable Certificate of Deposit) interest rate. Compared to the CD 91-day and KOFR (Korea Overnight Financing Rate), it has a longer investment period, allowing investors to expect the highest interest income among currently listed interest rate-type ETFs in Korea.

Unlike general bond-type ETFs that may incur losses due to interest rate fluctuations, the ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF’ calculates the 1-year CD interest rate on a daily basis and reflects it with compound interest daily. Investors can earn the daily interest rate of the 1-year CD even if they invest for just one day, without any period or conditions.

In particular, the ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active ETF’ is expected to replace existing cash-equivalent products such as bank time deposits and parking accounts. Unlike time deposits that pay only a portion of the agreed interest rate upon early termination, this ETF allows buying and selling at any time without early redemption fees, making it efficient for managing cash assets. Additionally, since it is a daily compound interest product, the longer the investment period, the more advantageous it becomes.

The ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active ETF’ will be listed with a scale of 230 billion KRW, the largest ever for a domestic interest rate-type ETF. The larger the net asset size of an ETF, the more it can reduce costs incurred from trading within the fund, thereby lowering trading fees and other expenses borne by investors.

It is a bond-mixed type ETF that can be invested 100% through retirement pension accounts, and when trading using pension accounts, taxation is deferred until withdrawal, with tax credits also available.

To commemorate the launch of the ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active ETF,’ Mirae Asset Global Investments is conducting a listing event for trading customers. Customers who meet the daily trading and net purchase conditions of this ETF at Mirae Asset Securities, SK Securities, Korea Investment & Securities, and Kiwoom Securities will receive cultural gift certificates through a lottery and other means. Detailed event information can be found on each securities firm’s website.

The ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active ETF’ is the second TIGER ETF to track CD interest rates. The ‘TIGER CD Interest Rate Investment KIS (Synthetic) ETF,’ which tracks the 91-day CD interest rate yield, has a net asset value of 7.3314 trillion KRW as of the closing price on the 5th, making it the largest ETF in Korea.

Namho Kim, Head of the FICC ETF Management Division at Mirae Asset Global Investments, said, “‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active ETF’ aims for higher returns than existing interest rate-type ETFs. Even investing for just one day allows earning the daily interest rate of the 1-year CD, making it a potential replacement for existing cash-equivalent products such as bank time deposits and parking accounts.”

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