Mirae Asset 'TIGER 23-12 Gukgongchae Active ETF' Newly Listed

[Asia Economy Reporter Hwang Yoon-joo] The 'TIGER 23-12 Gukgongchae Active ETF' is a term-limited bond ETF that can achieve the targeted yield if held until maturity, even if market interest rates rise. It primarily invests in government bonds, Monetary Stabilization Bonds, and special bonds rated AAA or higher, aiming for a maturity yield of approximately 4.49%. The ETF's benchmark index is the ‘KIS Gukgongchae 2312 Maturity Index’.

A term-limited ETF is a product with a maturity date, unlike traditional ETFs; upon maturity, it is delisted and redeemed. The maturity date of the TIGER 23-12 Gukgongchae Active ETF is December 2023.

The TIGER 23-12 Gukgongchae Active ETF allows additional purchases before maturity, and if interest rates rise compared to the initial listing, investors can buy at a higher maturity yield level. Even if new investors make additional purchases, bonds are incorporated at the market maturity yield level at the time of setup, so the yield for existing investors is not significantly affected. During periods when interest rates fall after listing, investors can realize profits through mid-term sales.

Investing through pension accounts offers various tax benefits. The TIGER 23-12 Gukgongchae Active ETF defers taxation until withdrawal and provides tax credits when traded through ISA (Intermediary type), personal pension, or retirement pension (DC/IRP) accounts, making it suitable for pension investors.

Unlike individual bond investments, which generally require buying and selling through securities firms, the TIGER 23-12 Gukgongchae Active ETF can be easily bought and sold like stocks. Another advantage is that ETF trading fees are lower compared to individual bonds. ETFs allow diversified investment by incorporating various bonds, addressing the drawback of individual bond investments that concentrate on one or two issues and are exposed to specific corporate risks.

Meanwhile, Mirae Asset Global Investments launched the ‘TIGER 24-10 Corporate Bond (A+ or higher) Active ETF (447820)’ in November, which mainly invests in corporate bonds rated A+ or higher. This ETF has attracted significant investor interest, surpassing a cumulative trading volume of 100 billion KRW within just seven trading days after listing.