TIGER 28-04 Corporate Bond (A+ or Higher) Active ETF Newly Listed
Mirae Asset Global Investments announced on the 26th that it will newly list the 'TIGER 28-04 Corporate Bond (A+ or Higher) Active ETF' on the Korea Exchange.
The TIGER 28-04 Corporate Bond (A+ or Higher) Active ETF is a maturity-matching bond ETF that invests in high-quality corporate bonds rated A+ or higher, maturing in April 2028. Maturity-matching bond ETFs are popular among investors seeking stable fund management, as holding them until maturity allows for the realization of the expected principal and interest income.
As of the previous day, the expected yield to maturity (YTM) for the 'TIGER 28-04 Corporate Bond (A+ or Higher) Active ETF' was approximately 3% per annum.
Maturity-matching bond ETFs can be traded before maturity, enabling investors to employ active strategies in response to interest rate fluctuations. When interest rates rise, investors can expand returns through additional purchases. When interest rates fall, capital gains can be realized by selling before maturity. Unlike deposits, the agreed interest rate does not decrease upon early sale, and these ETFs offer higher liquidity and a more convenient trading environment than individual bonds.
The TIGER 28-04 Corporate Bond (A+ or Higher) Active ETF seeks excess returns by including corporate bonds rated A+ or higher and employing an active management strategy. To outperform its benchmark index, it invests in domestic bonds, commercial papers, government bonds, special bonds, and monetary stabilization bonds, while actively managing duration.
To commemorate the launch of the TIGER 28-04 Corporate Bond (A+ or Higher) Active ETF, Mirae Asset Global Investments is holding a listing event for trading customers. Some customers who meet the daily trading conditions for this ETF at SK Securities will receive cultural gift certificates. Detailed information about the event can be found on the securities firm's website.
Kim Dongmyung, Head of Bond ETF Management at Mirae Asset Global Investments, explained, "Maturity-matching bond ETFs are gaining popularity because investors can lock in returns at the time of investment, as holding them until maturity allows for the realization of the expected principal and interest income regardless of market volatility."
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He added, "With the market expecting a benchmark interest rate cut by October this year, I believe the TIGER 28-04 Corporate Bond (A+ or Higher) Active ETF could be the last opportunity to invest in a maturity-matching product before the rate cut."
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