'TIGER Money Market Active ETF' Surpasses 2 Trillion Won in Net Assets

Mirae Asset Global Investments announced on July 22 that the 'TIGER Money Market Active Exchange-Traded Fund (ETF)' surpassed 2 trillion won in net assets just three months after its initial listing.

According to the Korea Exchange, as of the close of trading on July 21, the net assets of the 'TIGER Money Market Active ETF' stood at 2.0048 trillion won. The fund exceeded the 2 trillion won mark only three months after its listing on April 22. Amid a recent trend of declining short-term interest rates and deposit rates at commercial banks, the ETF has attracted attention from investors as an alternative investment product to prepare for a period of falling interest rates, leading to rapid growth.

The 'TIGER Money Market Active ETF' is an MMF-type ETF that invests in ultra-short-term bonds with maturities of less than three months and commercial papers (CP). Based on an active strategy, it seeks to generate excess returns over its benchmark by selectively investing in high-yield assets. At the same time, to minimize risks from market volatility, the portfolio is composed mainly of high-credit-rated assets to enhance stability. In addition, because it is marked to market, unlike traditional MMFs, it offers high liquidity.

As of July 21, the expected yield to maturity (YTM) of the 'TIGER Money Market Active ETF' is 2.70%. This is a high level not only compared to other money market ETFs listed in Korea but also compared to other parking-type products. Currently, the 91-day Certificate of Deposit (CD) rate and the Korea Overnight Financing Repo Rate (KOFR) are both at 2.5%, while the six-month time deposit rate is around 2.0%. In addition, the ETF’s low annual total fee of 0.040% helps maximize investment returns.

Kim Dongmyung, Head of Fixed Income ETF Management at Mirae Asset Global Investments, stated, "As market volatility increases, savvy investors are focusing on money market ETFs, which offer better returns than parking-type or deposit products and can be easily liquidated when funds are needed." He added, "'TIGER Money Market Active ETF' will continue to provide stable returns through thorough risk analysis and the discovery of undervalued assets."

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