Mirae Asset's 'TIGER 1-Year Bank Negotiable Certificate of Deposit Active ETF' Surpasses 500 Billion KRW in Net Assets

Mirae Asset Global Investments announced on the 21st that the ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) Exchange Traded Fund (ETF)’ has surpassed 500 billion KRW in net assets.

According to the Korea Exchange, as of the closing price on the 20th, the net asset size of the ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF’ is 512.3 billion KRW. This ETF, which was newly listed on February 6th with the largest-ever domestic interest rate ETF size of 230 billion KRW, has more than doubled its net asset size in just over a month since its listing.

The ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF’ is the first domestic interest rate ETF that tracks the 1-year interest rate of negotiable certificates of deposit (CDs). It calculates the 1-year CD interest rate on a daily basis and reflects it with compound interest daily, allowing investors to earn the 1-year CD daily interest rate even with just a single day of investment, without any period or condition. Generally, the longer the maturity, the higher the bond interest rate due to the term premium, so long-term interest rates tend to be higher.

Based on high interest rates and an active management strategy, the ‘TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF’ has also recorded excellent performance in terms of returns. As of the 20th since its listing, the ETF’s return (NAV, annualized) is 3.648%. This ranks first among domestic KRW-based interest rate ETFs listed in Korea, including those tracking 3-month CDs.

Jung Seung-ho, head of the FICC ETF Management Division at Mirae Asset Global Investments, stated, “The TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF is designed and managed to provide a high level of interest rates and has recorded the highest returns among domestic KRW-based interest rate ETFs. Although interest rate cuts are expected this year, concerns remain about the burden of stock index valuations and the potential slowdown in inflation decline, so this ETF can be used as a countermeasure against market volatility.”

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