Mirae Asset, 'TIGER Money Market Active ETF' Net Assets Surpass 500 Billion KRW

Mirae Asset Global Investments announced on the 29th that the net asset value of the 'TIGER Money Market Active ETF' has surpassed 500 billion KRW.

According to the Korea Exchange, as of the previous day's closing price, the net asset value of the 'TIGER Money Market Active ETF' stood at 515.7 billion KRW. After surpassing 300 billion KRW in net assets on the 15th, it exceeded 500 billion KRW in just about two weeks.

This rapid growth is attributed to the continued buying trend among individual investors. Since its listing on April 22, the cumulative net purchases by individuals in the 'TIGER Money Market Active ETF' have reached 20.6 billion KRW. This is the fastest pace among money market ETFs listed in Korea.

This year, prolonged market volatility and the trend of interest rate cuts have significantly increased investor demand for flexible management of short-term funds. The 'TIGER Money Market Active ETF' is meeting this demand and is gaining attention as an alternative to savings, time deposits, and other parking-type products.

The 'TIGER Money Market Active ETF' is a short-term fund ETF that invests in ultra-short-term bonds and CP (commercial paper). While it is similar to traditional MMFs in terms of portfolio composition and duration, it faces fewer operational restrictions and applies mark-to-market valuation, allowing for the potential of excess returns compared to standard MMFs.

In terms of returns, it is expected to outperform other interest rate products. As of the 28th, the 91-day CD rate, a key indicator for interest rate products, had fallen to 2.63%, while the YTM (yield to maturity) of the 'TIGER Money Market Active ETF' was recorded at 2.91%. This ranks among the highest of all money market ETFs currently listed in Korea. In addition, the total expense ratio is as low as 0.040% per year, which helps maximize investment returns.

Kim Dongmyung, Head of Fixed Income ETF Management at Mirae Asset Global Investments, stated, "As we enter a period of declining interest rates, the expected return levels of interest rate ETFs, which attracted much attention until last year, have decreased. However, the 'TIGER Money Market Active ETF' offers both stability and the potential for capital gains when interest rates fall, so relatively higher returns can be expected." He added, "Given that the YTM difference between CD rate ETFs and money market ETFs currently exceeds 0.25%, now is the time to actively consider investing in money market ETFs in this changing interest rate environment."

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