'TIGER US S&P500 Leverage ETF' Total Fees Reduced to Industry Lowest Level

[Asia Economy Reporter Junho Hwang] Mirae Asset Global Investments lowered the total expense ratio of the 'TIGER US S&P500 Leverage ETF' from 0.58% per annum to 0.25% per annum on the 4th, a reduction of 0.33 percentage points. This is the lowest total expense ratio among overseas index leverage ETFs listed on the Korea Exchange.

Specifically, the collective investment manager fee rate was reduced from 0.51% per annum to 0.20% per annum, the trustee fee rate from 0.03% per annum to 0.02% per annum, and the general administrative company fee rate from 0.03% per annum to 0.02% per annum. The designated participant company fee rate remains unchanged at 0.01% per annum.

The TIGER US S&P500 Leverage ETF is an ETF that tracks twice the daily return of the US representative index, the 'S&P500 Index.' The S&P500 Index consists of 500 stocks selected based on company size, liquidity, and industry representation from stocks listed on the New York Stock Exchange and NASDAQ. This index includes large-cap stocks accounting for approximately 80% of the total US market capitalization, reflecting the overall US economic situation.

Although leverage and inverse ETFs are short-term trading products, if market predictions are wrong, they inevitably lead to long-term investments, making it important to approach them with low fees. Mirae Asset Global Investments lowered the total expense ratio of four types of TIGER leverage and inverse ETFs to 0.022% per annum in July this year, which was the lowest level worldwide at the time.

Leverage ETFs implement a basic deposit system for investors. Additionally, individual investors must complete pre-education conducted by the Korea Financial Investment Association before trading is allowed.