Mirae Asset Global Investments, 'TIGER Carbon Efficiency Green New Deal ETF' Listing Commemoration Event

[Asia Economy Reporter Minji Lee] Mirae Asset Global Investments announced on the 5th that it has listed the domestic equity-type ‘TIGER Carbon Efficiency Green New Deal ETF,’ which invests in low-carbon companies by reflecting ESG factors, and will hold an event for trading customers.

The ‘TIGER Carbon Efficiency Green New Deal ETF’ is the first domestic eco-friendly investment ETF that mainly invests in low-carbon companies. It excludes high carbon-emitting companies and invests by scoring carbon emissions relative to sales and weighting the allocation toward companies with high carbon efficiency scores through comparisons within industry groups.

The underlying index is the KRX·S&P Carbon Efficiency Green New Deal Index. Stocks are selected from the S&P Korea BMI (Broad Market Index) components considering carbon emissions, information disclosure status, liquidity, and investment risk, and weights are applied to each stock based on comparisons of carbon emissions relative to sales within the industry group.

Among the S&P Global LargeMidCap Index components, stocks that emit more carbon than the 100th ranked stock by carbon emissions and those deemed by the ESG rating agency Trucost to have insufficient disclosure of carbon emission information are excluded from investment.

Non-financial factors of companies, including ESG (Environmental, Social, and Governance) as well as liquidity conditions, are also reflected. RepRisk, an ESG data science company, calculates daily scores that reflect companies’ investment risks related to ESG issues. As of the end of January, 484 stocks remain after excluding 290 from the 774 S&P Korea BMI components.

The ‘TIGER Carbon Efficiency Green New Deal ETF’ is managed using a full replication strategy to closely track the volatility of the underlying index. It is a private New Deal fund unrelated to the government-funded policy New Deal fund and is managed in the same way as a general domestic equity ETF.

The listing commemorative event will be held through KB Securities from February 5 to 26, and the top 10 customers who trade more than 300 million KRW daily will receive a 50,000 KRW cultural gift certificate.