Mirae Asset Lists 'TIGER Technology Transfer Bio Active ETF'... "Focused Investment in Biotech"
Introduced at March 16 Webinar
Biotech-Focused Investment Strategy
Mirae Asset Global Investments will list the "TIGER Technology Transfer Bio Active" Exchange-Traded Fund (ETF) on March 17. The company aims to offer investment opportunities in the biotech sector through active management that can proactively incorporate clinical momentum and industry trends.
On March 16, Mirae Asset Global Investments held a webinar to announce the new listing of "TIGER Technology Transfer Bio Active" and to discuss global biotech industry trends, the expansion of technology transfer, opportunities for domestic biotech investment, and ETF investment strategies.
First, Mirae Asset Global Investments highlighted that the government's KOSDAQ activation policy is closely connected to investment opportunities in the biotech industry. Since a significant number of domestic biotech companies are listed on the KOSDAQ market, the government's KOSDAQ activation initiatives and the inflow of policy funds are being seen as positive factors for the biotech sector's investment environment. With policy funds such as the K-Bio Vaccine Fund and the National Growth Fund flowing into the biotech industry, investment opportunities in biotech companies are expected to further expand going forward.
The first factor to consider when investing in the pharmaceutical and biotech industry is the "validity of data." Jae Won Song, Senior Manager at Mirae Asset Global Investments, explained, "While no one can predict clinical results, it is important to assess interim results and the likelihood of success for companies using similar antibodies or technologies, and to determine whether there is a clear advantage over competing drugs." He also advised that investors should comprehensively consider whether a company is undervalued in the market, as well as its level of investor interest and momentum.
The TIGER Technology Transfer Bio Active ETF is an active strategy ETF that primarily invests in biotech companies with high potential for technology transfer. The ETF portfolio focuses on KOSDAQ-listed biotech firms, and it dynamically adjusts weightings based on clinical momentum and global technology trends. Since the pharmaceutical and biotech industry can show significant performance differences among companies depending on clinical outcomes and technology transfer success, proactive stock selection and risk management are essential in this investment area. This ETF is designed to selectively identify biotech companies with strong technology transfer momentum and high growth potential, in line with these industry characteristics.
Song emphasized, "Unlike other ETFs, this product builds a portfolio primarily centered on biotech companies, making it highly accessible to biotech investments. By utilizing active strategies, we are able to sell decisively and respond quickly and flexibly. In the biotech sector, since it is extremely difficult to predict clinical outcomes, there are times when bold selling decisions are necessary."
Regarding portfolio composition, Song explained, "Since most biotech companies are listed on the KOSDAQ, the KOSDAQ allocation is expected to be around 80% to 85%. The proportion of biotech companies in the portfolio will be about 70% to 80%, which is relatively high compared to other ETFs."
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Additionally, Song noted, "For biotech companies that do not currently generate revenue or profits, their future technologies are valued based on present cash flow, which means investor expectations can be heavily reflected and sometimes priced in ahead of actual results. Because biotech stocks have this characteristic, it is crucial to analyze and understand them thoroughly, which makes active ETFs particularly advantageous in this sector."
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