Mirae Asset 2nd Battery ETF Net Assets Surpass 1 Trillion Won

Nearly Doubled in the Past Month

[Asia Economy Reporter Minwoo Lee] The net assets of secondary battery exchange-traded fund (ETF) products managed by Mirae Asset Global Investments have surpassed 1 trillion won.

Mirae Asset Global Investments announced on the 19th that the net assets of the three TIGER secondary battery ETFs reached 1.2848 trillion won as of the closing price on the 15th. The total size nearly doubled in just one month.

The 'TIGER KRX Secondary Battery K-New Deal ETF' had the largest net assets at 577.3 billion won, followed by the 'TIGER Secondary Battery Theme ETF' at 535.7 billion won, and the 'TIGER China Electric Vehicle ETF' at 171.8 billion won.

Launched in September 2018, the 'TIGER Secondary Battery Theme ETF' is based on the 'WISE Secondary Battery Theme Index.' It selects investable stocks by analyzing keywords in securities firms' reports to identify those prominently featuring secondary batteries. Then, it finalizes selections by reviewing the sales composition in each company's business reports. It includes a balanced mix of domestic battery cell, materials, and equipment companies, allowing investment across the entire secondary battery industry. Since inception, its return has been 73%.

The 'TIGER KRX Secondary Battery K-New Deal ETF' is part of the private New Deal fund series 'TIGER K-New Deal ETF Series' and was listed in October last year. Its underlying index, the 'KRX Secondary Battery K-New Deal Index,' consists of 10 stocks, with the top three stocks equally weighted at 75%, and the remaining seven stocks weighted by free-float market capitalization at 25%. By increasing the weighting of leading domestic battery cell companies by market cap, it is expected to focus investment on future growth industry leaders. The cumulative return since inception is 59.6%.

Launched last month, the 'TIGER China Electric Vehicle SOLACTIVE ETF' is a product that invests in Chinese electric vehicle-related sectors. It tracks the 'Solactive China Electric Vehicle Index.' It includes the top 20 stocks by market capitalization listed on China A-shares, the Hang Seng Index, and U.S. exchanges that operate manufacturing and sales businesses related to electric vehicles in sectors such as electronics, automobiles, auto parts, industrial equipment, and specialty chemicals. It recorded a return of 24.15% within one month of inception.

The TIGER secondary battery ETF products can also be approached from a long-term perspective when investing through pension accounts. Upon pension receipt, a low separate taxation rate of 3.3% to 5.5% applies. Due to the nature of ETFs, the 0.23% transaction tax is also exempted.

Kwon Oh-sung, Head of ETF Marketing at Mirae Asset Global Investments, said, "The secondary battery industry will transition from an innovative theme to a mega trend based on its high growth potential. Through the TIGER secondary battery ETF series, investors can easily diversify their investments in the secondary battery theme while enjoying the advantages of ETFs such as trading convenience and low fees."