[Asia Economy Reporter Junho Hwang] Mirae Asset Global Investments' TIGER US Nasdaq 100 ETF surpassed 700 billion KRW in net assets as of the closing price on the 6th. It is the largest North American equity ETF listed domestically. Mirae Asset Global Investments announced on the 14th that it took just three months since surpassing 600 billion KRW in net assets in early January this year.
The TIGER US Nasdaq 100 ETF invests in US Nasdaq-listed stocks centered on IT, consumer goods, and healthcare. As of the 12th, the ETF recorded returns of 56.77% over one year, 121.78% over three years, and 207.91% over five years. For overseas equity ETFs, the larger the net asset size, the lower the other costs, which is advantageous for investors.
The TIGER US Nasdaq 100 ETF tracks the NASDAQ 100 Index. The NASDAQ 100 Index is one of the three major indices representing the US market, along with the S&P 500 Index and the Dow Jones Industrial Average. The index consists of 100 representative stocks from sectors such as computer hardware and software, telecommunications, wholesale and retail trade, and biotechnology listed on the US Nasdaq Stock Market. It is composed of companies representing global new growth industries, from advanced technology stocks like Microsoft, Alphabet, and Tesla to venture companies, making it an index focused on US growth potential. Financial companies are excluded, and rebalancing is conducted quarterly using a market capitalization-weighted average method. The TIGER US Nasdaq 100 ETF is managed through a full replication strategy to closely track the underlying index's fluctuations and does not implement separate currency hedging.
The TIGER US Nasdaq 100 ETF can be used as a pension product from a long-term investment perspective. When trading overseas equity ETFs in a general account, capital gains and dividends are taxed at a 15.4% dividend income tax rate. However, when trading in a pension account, taxation on capital gains and dividends is deferred and subject to a lower separate taxation rate of 3.3% to 5.5% pension income tax upon pension receipt. Additionally, due to the nature of ETFs, the 0.23% transaction tax is exempted, allowing for multiple tax-saving benefits when trading ETFs in pension accounts.
Kwon Oh-sung, Head of ETF Marketing at Mirae Asset Global Investments, stated, "It is advisable to invest in ETFs for long-term and diversified investment rather than concentrating on individual stocks," adding, "Mirae Asset will continue to provide representative index products suitable for pension use at low costs."
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