Mirae Asset Management's 'TIGER CD Interest Rate Investment KIS (Synthetic) ETF' Surpasses 5 Trillion KRW in Net Assets

[Asia Economy Reporter Kwangho Lee] Mirae Asset Global Investments announced on the 3rd that the net assets of the 'TIGER CD Interest Rate Investment KIS (Synthetic) ETF' have surpassed 5 trillion KRW. Among ETFs newly listed on the Korea Exchange in the past 20 years, the TIGER CD Interest Rate Investment KIS (Synthetic) ETF is the only one with net assets exceeding 5 trillion KRW.

According to the Korea Exchange on the 3rd, as of the previous day's closing price, the net assets of the TIGER CD Interest Rate Investment KIS (Synthetic) ETF stood at 5.1908 trillion KRW. This ETF had net assets of only about 250 billion KRW at the end of 2021, but due to the sharp rise in CD interest rates, it attracted significant investor interest, increasing by 3.2 trillion KRW in 2022 alone. This year, it has increased by more than 1 trillion KRW, surpassing 5 trillion KRW in net assets in less than three years since its listing in July 2020.

The TIGER CD Interest Rate Investment KIS (Synthetic) ETF is the first domestic interest rate-type ETF that tracks the 91-day CD (Certificate of Deposit) yield, which is announced daily by the Korea Financial Investment Association. Interest is compounded daily, and unlike bank deposits, it can be easily liquidated, making it notable as a 'parking-type ETF' that can replace bank parking accounts. Additionally, when traded through ISA (Individual Savings Account, brokerage type), personal pension, or retirement pension (DC/IRP) accounts, taxation is deferred until withdrawal, and tax credits can be received, making it suitable for pension investors.

Certificates of Deposit (CDs) are financial products issued by banks with transferability granted to time deposit certificates, with maturities ranging from 30 days to one year. The 91-day CD announced interest rate is an indicator representing the average annual yield of 91-day CDs, which generally offers higher interest rates compared to government bonds, monetary stabilization bonds with similar remaining maturities, or short-term financial products such as CMA and RP.

Namgi Kim, Head of ETF Management Division at Mirae Asset Global Investments, said, "The TIGER CD Interest Rate Investment KIS (Synthetic) ETF directly benefits from rising interest rates and offers a compound interest effect unlike typical parking accounts or savings deposits, making it highly competitive. Going forward, Mirae Asset will continue to discover and provide products suitable for long-term investment with the attitude of taking responsibility for investors' retirement."

Meanwhile, Mirae Asset Global Investments is holding a special event to celebrate the TIGER CD Interest Rate Investment KIS (Synthetic) ETF surpassing 5 trillion KRW in net assets. From February 3rd to 14th, on the 'TIGER ETF website' and the 'TIGER ETF Kakao Plus Friend channel,' among those who answer quizzes related to the TIGER CD Interest Rate Investment KIS (Synthetic) ETF, 2,023 winners will be selected by lottery to receive Starbucks gifticons.