TIGER Leverage and Inverse ETFs Further Lowered Fees

[Asia Economy Reporter Junho Hwang] Mirae Asset Global Investments announced on the 29th that it will lower the fees for four types of TIGER Leverage and Inverse ETFs to the world's lowest level.

The total fees for the four ETFs will be reduced from an annual rate of 0.09% to 0.022%. This is not only the lowest among leverage and inverse ETFs listed in Korea but also the lowest worldwide. Currently, the total fees for KOSPI200 and KOSPI200 futures leverage and inverse ETFs listed domestically range from 0.06% to 0.64% annually.

The ETFs include TIGER Leverage ETF, TIGER Inverse ETF, TIGER 200 Futures Leverage ETF, and TIGER 200 Futures Inverse 2X ETF. The leverage and inverse ETFs aim to achieve daily returns of 2 times and -1 times the KOSPI 200 index, respectively. The 2X ETFs target returns of 2 times and -2 times that amount.

Although leverage and inverse ETFs are designed for short-term trading, if market predictions are incorrect, investors may be forced into long-term holdings, making low fees important for accessibility. This measure is expected to benefit investors who involuntarily hold these short-term products for the long term.

Along with the fee reduction, Mirae Asset Global Investments plans to enhance the liquidity of TIGER leverage and inverse ETFs and manage bid-ask spreads more stably.

Namgi Kim, Head of ETF Operations at Mirae Asset Global Investments, stated, "By leveraging Mirae Asset's global network and collaborating with global ETF market makers based in Singapore, Australia, and Hong Kong, we have dramatically improved the liquidity of leverage and inverse ETFs. Rational investors should consider trading leverage and inverse ETFs through TIGER ETFs, which offer the world's lowest fees."

New investors in leverage ETFs have been subject to a basic deposit system since September last year, and existing investors since January this year. Individual investors must complete pre-education conducted by the Korea Financial Investment Association before trading.