Mirae Asset, 'TIGER Eunhaeng Gobaedang Plus TOP10' PBR 0.34... "Expecting Benefits from Corporate Value-Up Program Policy"

Mirae Asset Global Investments announced on the 16th that the ‘TIGER Eunhaeng Gobaedang Plus TOP10 ETF’ showed the lowest price-to-book ratio (PBR) among all domestic exchange-traded funds (ETFs).

As of the 15th, the price-to-book ratio (PBR) of the ‘TIGER Eunhaeng Gobaedang Plus TOP10 ETF’ is 0.34, the lowest among 828 ETFs listed in Korea.

Due to the government’s ‘Corporate Value-Up Program’ policy, financial sectors such as banks, insurance, and securities stocks, as well as holding companies with the lowest PBR among the top market capitalization companies in the domestic stock market, are receiving attention. Among them, the ‘TIGER Eunhaeng Gobaedang Plus TOP10 ETF’ is the ETF with the lowest PBR in Korea. It is expected to benefit from the Value-Up Program. Detailed contents of the Corporate Value-Up Program policy are scheduled to be announced within this month, and interest in low PBR stocks is expected to continue.

The ‘TIGER Eunhaeng Gobaedang Plus TOP10 ETF’ is a high-dividend ETF that invests only in large bank stocks that have paid dividends continuously for more than three years, excluding companies with low dividend yields. As of the 15th, it recorded returns of 17.3% over the past month and 16.7% over the past three months.

The ‘TIGER Jijuhoesa ETF’ is also considered a beneficiary ETF of the Corporate Value-Up Program. Composed solely of holding companies such as LG, SK, and HD Hyundai, this ETF is the only one in Korea made up exclusively of holding companies. As of the 15th, its PBR is 0.66, a low level. Following the policy announcement, many companies have announced share buybacks and cancellations, continuing various shareholder-friendly actions that can enhance shareholder value, so benefits are expected.

Additionally, investors seeking stable cash flow along with low PBR benefits can consider using the two ETFs, ‘TIGER Eunhaeng Gobaedang Plus TOP10 ETF’ and ‘TIGER Jijuhoesa ETF.’ As of 2023, the annual dividend yields of these two ETFs are approximately 7% and 4%, respectively.

The monthly dividend-type ‘TIGER Eunhaeng Gobaedang Plus TOP10 ETF’ has the highest dividend yield among domestic high-dividend ETFs, and by paying a fixed distribution every month, it is expected to add stability and diversity to investment portfolios.

Jung Eehyun, head of the ETF management team at Mirae Asset Global Investments, said, “The core of the Value-Up Program is the expansion of corporate shareholder return policies, and we expect attention to focus on holding companies and bank stocks that have achieved dividend growth and have high potential to enhance shareholder value.” He added, “It is worth paying attention to TIGER ETFs that have both low PBR and high dividends.”

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