Mirae Asset Lowers Total Expense Ratio of TIGER REITs Real Estate Infrastructure ETF

Among Domestic REITs ETFs, One of the Lowest Levels

Mirae Asset Global Investments announced on the 19th that it will reduce the total expense ratio of the ‘TIGER REITs Real Estate Infrastructure ETF’ to 0.08% per annum.

Mirae Asset Global Investments is lowering the total expense ratio of the TIGER REITs Real Estate Infrastructure ETF from 0.29% to 0.08% per annum, which is among the lowest levels for domestically listed REITs ETFs.

The TIGER REITs Real Estate Infrastructure ETF, launched in July 2019, is the first REITs ETF listed in Korea and currently the largest REITs ETF in the country. As of the closing price on the 18th, its net asset value stands at 378.4 billion KRW. Over the past year, net purchases by individual investors have exceeded 100 billion KRW, establishing it as a leading domestic REITs ETF.

Mirae Asset Global Investments decided to reduce the total expense ratio in response to the high interest in the TIGER REITs Real Estate Infrastructure ETF, a representative domestic REITs ETF. Unlike last year, the REITs market has seen improved investor sentiment this year due to expectations of stock price increases. The anticipated U.S. interest rate cuts are stabilizing and lowering real estate loan rates, and positive market factors such as the passage of legislation to expand REITs dividends are also contributing favorably.

The TIGER REITs Real Estate Infrastructure ETF, which selectively invests in high-quality domestically listed REITs such as Macquarie Infrastructure and SK REITs, is expected to generate capital gains from stock price appreciation. This ETF is a monthly dividend type that pays distributions based on rental income generated from REIT assets including offices, hotels, and logistics warehouses, allowing investors to easily invest in real estate or infrastructure markets with small amounts and secure steady income.

The TIGER REITs Real Estate Infrastructure ETF is also attracting attention for its high dividend yield of around 6% per annum. According to the Korea Securities Depository, the ETF’s cumulative distribution rate in 2023 was 6.94%, ranking 4th among all monthly dividend ETFs listed domestically. Excluding covered call strategy products, which generally have higher dividend rates, it ranks first.

Han Yoo-jin, manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, "Interest in the TIGER REITs Real Estate Infrastructure ETF is growing due to expectations of a market recovery and the popularity of monthly dividend ETFs. We have reduced the total expense ratio to enhance investors’ returns, and we expect that investors will be able to make long-term investments through pension accounts and other means without fee burdens going forward."

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