Mirae Asset Launches New 'TIGER 26-04 Corporate Bond Active ETF'

Mirae Asset Global Investments announced on the 24th that it will newly list the ‘TIGER 26-04 Corporate Bonds (A+ and above) Active Exchange-Traded Fund (ETF)’ on the Korea Exchange.

The ‘TIGER 26-04 Corporate Bonds (A+ and above) Active ETF’ is a maturity-matching bond ETF that primarily invests in corporate bonds with a maturity of April 2026 rated A+ or higher. Maturity-matching bond ETFs operate by including bonds with similar maturity dates and liquidating the ETF at maturity to provide principal and interest income.

If investors hold the ETF until maturity, they can realize the yield to maturity (YTM) at the time of investment regardless of market interest rate fluctuations. As of the 23rd of this month, the expected yield to maturity of the ‘TIGER 26-04 Corporate Bonds (A+ and above) Active ETF’ is approximately 3.40% annualized.

Since maturity-matching bond ETFs can be traded anytime before maturity, investors can pursue additional profits through additional purchases or mid-term sales depending on interest rate changes. Accordingly, the ‘TIGER 26-04 Corporate Bonds (A+ and above) Active ETF’ is expected to respond well to the upcoming interest rate cut cycle and uncertain market conditions. If interest rates rise compared to the listing time, investors can increase the yield to maturity through additional purchases, and if interest rates fall, they can sell before maturity to seek capital gains.

When investing using pension accounts, the ‘TIGER 26-04 Corporate Bonds (A+ and above) Active ETF’ also offers various tax benefits. It can be invested up to 100% in retirement pension (DC/IRP) accounts, and when traded through ISA (brokerage type), personal pension, or retirement pension accounts, taxation is deferred until withdrawal, and tax credits can be received.

Jung Seung-ho, head of the FICC ETF Management Team at Mirae Asset Global Investments, said, “In the domestic market where uncertainty is rising due to the Trump administration’s launch and recession concerns, demand for stable assets is increasing. In the situation ahead of a full-scale interest rate cut, the ‘TIGER 26-04 Corporate Bonds (A+ and above) Active ETF’ allows easy and convenient investment in bonds, offering both interest income and active capital gains.”

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