Mirae Asset Global Investments, TIGER US Technology Stock ETF 2 Types Trading Customer Event

[Asia Economy Reporter Minji Lee] Mirae Asset Global Investments announced on the 9th that it will hold an event for customers trading two newly listed TIGER U.S. Technology ETFs. The newly listed ETFs are the ‘TIGER U.S. Tech TOP10 INDXX ETF’ and the ‘TIGER U.S. Philadelphia Semiconductor Nasdaq ETF.’

Since the acceleration of the digital economy after COVID-19, innovative themes such as content, cloud, e-commerce, autonomous driving, and semiconductors have attracted attention. The TIGER U.S. Tech TOP10 INDXX ETF focuses on investing exclusively in the top blue-chip mega tech companies expected to sustain growth based on their dominant positions within innovative themes.

The index tracked by this fund is the ‘INDXX US TECH TOP10 INDEX.’ The index consists of the top 10 technology-related companies by market capitalization listed on the U.S. Nasdaq Stock Exchange. The index includes companies such as Apple and Microsoft, as well as e-commerce and delivery providers Amazon and Alphabet, and social network operator Facebook.

The TIGER U.S. Philadelphia Semiconductor Nasdaq ETF invests in U.S. semiconductor-related companies. Semiconductors are essential elements of the Fourth Industrial Revolution, incorporated as a value chain in major themes such as artificial intelligence, electric vehicles, and autonomous driving. With digital transformation bringing new infrastructure and digital devices, semiconductor consumption is also increasing. The U.S. is pursuing an America First policy in response to China’s semiconductor ambitions, and in June last year, proposed a bill to support semiconductor R&D with $25 billion over five years. The U.S. government is expected to expand support measures to maintain technological leadership and national security.

This fund tracks the ‘PHLX Semiconductor Sector INDEX.’ The index consists of the top 30 companies by market capitalization listed on the Nasdaq, New York Stock Exchange, and others, engaged in semiconductor design, manufacturing, and sales. The index includes Qualcomm, a leading telecommunications chip company that developed 1st and 2nd generation mobile communication technology CDMA; Intel, a comprehensive semiconductor company with direct semiconductor design and production capabilities focusing on CPUs; and Nvidia, the top GPU company specializing in graphics card design.

Both products can be used as pension products from a long-term investment perspective. From 2023, a 20% capital gains tax is imposed on domestic stocks, while overseas stocks benefit from tax deferral on trading gains and dividends, making them attractive for pension product use. Upon pension receipt, a low separate tax rate of 3.3% to 5.5% applies, and due to the ETF characteristics, the 0.23% transaction tax is exempted, allowing for tax savings in various ways. When trading in a general account, a 15.4% dividend income tax is imposed, and if financial income exceeds 20 million KRW, comprehensive financial income taxation may apply, so caution is advised.

The trading event runs from April 9 to May 7 through Korea Investment & Securities and KB Securities, respectively. Korea Investment & Securities will provide a 50,000 KRW mobile cultural gift certificate to the top 10 customers trading over 3.5 billion KRW daily in the target stocks, and 150,000 KRW in cash to the top 2 customers trading an average of over 600 million KRW weekly in the target stocks. KB Securities will provide a 50,000 KRW mobile cultural gift certificate to the top 10 customers trading over 300 million KRW daily in the target stocks.