Mirae Asset's TIGER Negotiable Certificate of Deposit Active ETF Individual Cumulative Net Purchases Surpass 100 Billion KRW

Mirae Asset Global Investments announced on the 23rd that the 'TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF' has surpassed 100 billion KRW in cumulative net purchases by individual investors. This is the shortest period among interest rate ETFs listed domestically, achieving this milestone in just 9 trading days since its listing.

According to the Korea Exchange, as of the 21st, the cumulative net purchase amount by individuals for the 'TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF' stands at 108.7 billion KRW. On the day of its listing on the 6th, the ETF recorded 23.2 billion KRW in individual net purchases, ranking first in individual net purchases on the listing day among all bond and interest rate ETFs to date. Individual investor purchases continued, surpassing 100 billion KRW in just 9 trading days.

The 'TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF' is the first domestic interest rate ETF that tracks the 1-year maturity rate of negotiable certificates of deposit (CDs). Compared to existing interest rate ETFs tracking KOFR or 91-day CD rates, it has a longer maturity, allowing investors to expect higher average returns, which has attracted significant interest from individual investors since its first day of listing.

With an increase in idle funds seeking new investment destinations recently, the 'TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF' is evaluated as a suitable investment option for idle funds due to its higher liquidity compared to bank time deposits. While time deposits require early withdrawal fees if terminated before maturity, ETFs can be freely bought and sold at any time. The ETF calculates the 1-year CD rate on a daily basis and reflects it with compound interest daily, allowing investors to earn the daily 1-year CD rate even if they invest for just one day without any period or condition restrictions.

The 'TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF' is classified as a bond-mixed product considered a safe asset, and it can be invested in 100% through retirement pension accounts, which is another advantage. It can be used as an alternative to deposits in brokerage-type ISA (Individual Savings Account) accounts where time deposit investments are not possible, and it also offers tax benefits.

Jung Seung-ho, head of the FICC ETF Management Division at Mirae Asset Global Investments, said, “The 'TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) ETF' is regarded as an interest rate product that can satisfy various investor demands. It can be a tailored product for investors who want to invest in deposits within ISAs, where tax benefits have been expanded.”

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